Earnings call transcript: SailPoint Q4 2026 sees strong SaaS growth

SailPoint Technologies Holdings, Inc. reported robust financial results for the fourth quarter of fiscal year 2026, highlighted by a significant increase in SaaS revenue and a strong annual recurring revenue (ARR) growth. Despite these positive results, SailPoint’s stock experienced a notable decline in pre-market trading, dropping by 9.25% to $13.35. According to InvestingPro data, the stock is now trading near its 52-week low of $12.81, with the current price at $12.96 representing a steep decline from its 52-week high of $24.95. The company’s focus on SaaS and emerging products has driven substantial growth, yet market sentiment appeared cautious.

SailPoint demonstrated strong performance in Q4 2026, driven by its SaaS business momentum. The company achieved a 28% year-over-year ARR growth, maintaining this rate consistently over the past three quarters. The SaaS segment, which saw a 38% year-over-year increase, accounted for the majority of the company’s new ARR. This growth was supported by SailPoint’s emerging products, which contributed significantly to the ARR. An InvestingPro tip notes that while the company was not profitable over the last twelve months, analysts predict SailPoint will be profitable this year, with earnings per share forecast at $0.23 for fiscal 2026.

SailPoint’s stock price fell by 9.25% in pre-market trading, with the last price recorded at $13.35. This decline comes despite the company’s strong financial performance, highlighting potential investor concerns or profit-taking following recent gains. The stock has fallen significantly over the past six months, down 34.42%, though InvestingPro analysis suggests the stock appears fairly valued at current levels. Wall Street analysts remain optimistic, with price targets ranging from $17.00 to $31.70, suggesting substantial upside potential. Want deeper insights? InvestingPro offers access to 5 additional exclusive tips for SAIL, plus comprehensive Pro Research Reports covering over 1,400 US equities with expert analysis and actionable intelligence.

CEO Mark McClain emphasized the company’s strategic focus on SaaS growth, stating, "Our SaaS-first strategy continues to drive exceptional growth, with SaaS ARR now representing 90% of our net new ARR in Q4." He also highlighted the success of emerging products, which doubled their contribution to net new ARR quarter-over-quarter.

SailPoint’s performance in Q4 2026 reflects its strong position in the cybersecurity industry, driven by its SaaS and emerging product strategies. However, the market’s cautious response highlights the challenges the company faces in maintaining investor confidence amidst broader economic uncertainties.

Operator: Thank you for standing by, and welcome to SailPoint’s fourth quarter fiscal and full year 2026 earnings conference call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. I would now like to hand the call over to Scott Schmitz, VP of Investor Relations. Please go ahead.

Gabriela Borges, Analyst, Goldman Sachs1: Good morning, and thank you for joining us today to discuss SailPoint’s fiscal fourth quarter and full year 2026 financial results. Joining me today are SailPoint’s founder and CEO, Mark McClain, and our Chief Financial Officer, Brian Carolan. For the Q&A portion of today’s call, we will also be joined by our President, Matt Mills. Please note that today’s call will include forward-looking statements, and because these statements are based on the company’s current intent, expectations, and projections, they are not guarantees of future performance, and a variety of factors could cause actual results to differ materially. This call will also include references to non-GAAP results, which exclude certain items that do not reflect our underlying business performance.

Please reference this morning’s press release and our supplemental earnings presentation posted on investors.sailpoint.com for further information regarding our forward-looking statements and non-GAAP financial measures, including reconciliations of such financial measures to the nearest comparable GAAP financial measures. With that, I’d like to turn the call over to Mark.

Mark McClain, Founder and Chief Executive Officer, SailPoint Technologies Holdings, Inc.: Thank you, Scott. Good morning, everyone, and thank you for joining us today. We just completed fiscal year 2026 with outstanding results that underscore our ability to deliver growth at scale. This has been a remarkable year for SailPoint as we continue to perform at an exceptionally high level. Our performance puts us at a level that we believe few companies in software and cybersecurity can claim. To back that up, let’s look at the key metrics for fiscal year 2026. We crossed the $1 billion ARR threshold. We delivered 28% overall ARR growth and a consistently strong 38% SaaS ARR growth. These are incredible results. To put this in perspective, our ARR growth of 28% year-over-year, plus our adjusted operating margin of 18% gives us a rule of 46.

This places us in a rare stratum of high-performing companies at greater than $1 billion in scale. Our journey to this point is the result of relentless innovation and unwavering execution. These efforts have enabled us to effectively meet the increasing demand for modern adaptive identity solutions. The combination of visionary product development and operational excellence has positioned SailPoint as a leader in the market, driving our continued success and instilling confidence in our ability to deliver value to our customers well into the future. This past year was also defined by a rapid pace of product advancement. We believe we’ve pushed our industry forward, making identity security more adaptive, more real-time, and more integrated within security operations. At a time when organizations are being pressure tested due to the extraordinary rise of agentic AI, we believe we are delivering the modern security foundation they need.

Our 38% year-over-year SaaS ARR growth is a powerful indicator of both new and existing customers actively choosing to modernize with SailPoint. Our SaaS customer count grew by 16% year-over-year, and our ARR per SaaS customer accelerated to 19% year-over-year growth in fiscal 2026. Our recently introduced flexible pricing model and new AI-fueled innovations are turning customer interest into tangible growth and reinforcing the clear momentum in our SaaS business. The second piece of context for our performance is the topic at the top of everyone’s mind, AI. Now, there is a very active debate happening in the market right now about what AI means for the future of software. I want to address this head on because from our perspective, the answer is clear. The more autonomous and agentic software becomes, the more essential enterprise identity security becomes.

This isn’t just about human users anymore. We are experiencing an era defined by an expansive non-human workforce. Armies of AI agents are being built by business users operating at machine speed and creating an explosion of identities and access points that legacy static security models simply cannot handle. While the scale of this agentic workforce is new, the core challenge of securing non-human identities is not new to us. We have been governing service accounts, bots, and other machine identities for years. For us, securing this new army of AI agents isn’t a reactive pivot, but a natural evolution for a platform architected for this very complexity. In this new world, you cannot secure what you cannot see, and you cannot govern what you cannot define. The fundamental question of who or now what has access to what doesn’t go away. It becomes exponentially more critical and complex.

For SailPoint, this isn’t a disruption to be managed. We believe it is the single greatest market expansion driver we have ever seen, and that solidifies our position as a foundational security control plane for the modern AI-powered enterprise. Because now enterprise security is identity security, and we believe no one is better positioned than SailPoint to help customers navigate into this new world. That is why we believe SailPoint is a significant beneficiary of the AI revolution. Our confidence rests on four deep compounding advantages that we believe are unique to us. First, experience. We have spent two decades exclusively focused on solving the most complex identity challenges for many of the world’s largest organizations. It’s a deeply vertical and horizontal challenge that cannot be solved by general-purpose AI alone. Second, data and context.

Our experience has allowed us to build a strategic moat through our use of data and context to deliver unparalleled precision and intelligence. Third, ecosystem. We are the control plane for its enterprise security, deeply woven into our customers’ operations with thousands of entitlement-level integrations. New AI agents don’t replace this. They must plug into it, making our platform the essential foundation. Finally, all of this culminates in our most valuable asset: trust. Many of the world’s most complex organizations choose us because we are proven and battle-tested. This trust is our currency in a market that cannot afford to risk its enterprise on unproven technology. We believe AI, coupled with our extensive domain knowledge built over decades, will prove itself a true game-changer in the coming years. Today, our solution for solving the AI identity challenge integrates AIS, MIS, and DAS solutions with more capabilities coming.

We’ve packaged these for easier adoption as part of our Digital Identity Flex pricing package. This approach is rooted in our long-standing philosophy of securing every identity, not ju