Highlights

  • SailPoint shares were trading at $21.79 on October 23, 2026, up 8.62%.
  • Fiscal second-quarter total revenue rose 17% to $308.8 million, with subscription revenue up 19% to $295.2 million.
  • Net loss widened to $50.4 million, or $0.09 per share, from $10.6 million a year earlier.
  • Customers with $250,000 or more in annual recurring revenue grew 22% year over year, and those above $1 million grew 27%.

SailPoint (NASDAQ: SAIL) shares were trading at USD 21.79 on October 23, 2026, up 8.62%. The identity security company reported fiscal second-quarter results showing double-digit subscription growth, an expanding base of large customers, and a widened net loss as it continues investing in its SaaS transition.

Headquartered in Austin, Texas, and incorporated in Delaware, SailPoint delivers identity security solutions that help enterprises govern which identities, including employees, machines and AI agents, have access to which resources. Its primary offerings are Identity Security Cloud, a SaaS-based platform, and IdentityIQ, a customer-hosted solution, sold mainly through three-year contracts. The company’s fiscal year ends January 31, and the quarter discussed here covers the three months ended July 31, 2026, the second quarter of its fiscal 2027.

Subscription Growth Continues as the Company Invests Ahead of Profitability

Total revenue for the quarter was $308.8 million, up 17% from $264.4 million a year earlier, driven by subscription revenue of $295.2 million, up 19% from $247.9 million. Services and other revenue declined to $13.6 million from $16.4 million. Gross profit rose to $205.4 million from $177.8 million, though gross margin was affected by higher software and hosting costs tied to SaaS growth.

Operating expenses increased across the board: research and development rose 29% to $62.2 million, sales and marketing rose 19% to $155.9 million, and general and administrative expenses rose 18% to $46.3 million, with the company attributing much of the increase to higher equity-based compensation tied to new grants issued during the fiscal year and continued headcount investment. The result was a loss from operations of $59.0 million, compared with $40.8 million a year earlier. Net loss was $50.4 million, or $0.09 per share, versus $10.6 million, or $0.02 per share, in the prior-year quarter, with the smaller year-ago loss aided by a larger income tax benefit.

Large-Customer Base Expands as Remaining Performance Obligations Grow

SailPoint said the number of customers with $250,000 or more in annual recurring revenue increased 22% year over year as of July 31, 2026, while customers with more than $1 million in annual recurring revenue increased 27%. Remaining performance obligations, representing contracted revenue not yet recognized, stood at $1.9 billion, of which the company expects to recognize $931.1 million as revenue over the next 12 months.

During the period, SailPoint continued to extend its product portfolio for machine and AI-agent identities, including its recently launched SailPoint Agentic Fabric offering designed to discover, govern and secure autonomous AI agents, which the company said complements its acquisition of Entro, a cloud-based platform that secures non-human identities, machine secrets and AI agents across enterprise environments.

Balance Sheet Remains Unlevered as Company Funds Growth Internally

As of July 31, 2026, SailPoint had cash and cash equivalents of $309.9 million. The company entered into a five-year, $250.0 million secured revolving credit facility in June 2025, maturing June 25, 2030, and had no outstanding balance on that facility as of quarter end. Management said it believes existing cash, cash flow from operations and the undrawn revolving credit facility are sufficient to meet its business requirements for at least the next 12 months, while noting it may pursue additional financing to support further acquisitions or investments as opportunities arise.

Geographically, the United States generated 66% of revenue for the quarter, Europe, the Middle East and Africa generated 20%, and the rest of the world generated 13%, broadly consistent with the prior-year mix. The company said its go-to-market motion remains focused on migrating customers toward its SaaS-based Identity Security Cloud suite, which it expects to support long-term growth in annual recurring revenue even as the shift creates near-term pressure on revenue growth and gross margin due to differences in revenue recognition and hosting costs between SaaS and term-based subscriptions.