SailPoint Technologies Holdings, Inc. (SAIL) reported total annual recurring revenue (ARR) of $1.163 billion for Q1 of fiscal 2027, a 26% increase year-over-year, with SaaS ARR growing 36% to $781 million. SaaS accounted for 92% of net new ARR in the quarter compared to 69% a year earlier. The company anticipates Q2 revenues between $308 million and $312 million, reflecting a year-over-year growth of 17-18%.
Non-human identities contributed to 40% of the identity growth in Q1 2027, with AI capabilities adopted by around 10% of customers. SailPoint has approximately $350 million in on-premise ARR yet to migrate, but expects only 10% of this base to migrate in fiscal 2027 due to complexity. The adjusted operating margin improved to 13.5%, up from 10.2% a year prior, with operating cash flow reaching $38 million.
SailPoint faces competition from companies like Microsoft and Cisco, which have extensive identity and security offerings. As of now, SAIL’s shares have decreased 18% year-to-date, slightly outperforming Microsoft’s 18.7% decline.
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