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What were the key takeaways from SailPoint’s earnings call?

- **$1B ARR Milestone**: Q3 ARR of $1.04B (+28% YoY), with SaaS ARR at $669M (64% of total ARR).
- **Innovation Success**: Machine Identity Security fastest-growing product, with cross-sell ARR up >100% YoY.
- **Financial Strength**: Q3 revenue $282M (+20% YoY), adjusted operating margin 19.8%, free cash flow $49M.
- **Guidance Raise**: FY2026 ARR guidance increased to $1.122B (+28% YoY), Q4 ARR growth expected at 30%.
- **Competitive Edge**: Unique combination of breadth (all identity types) and depth (entitlement context) vs. competitors.
- **Customer Expansion**: NRR 114% driven by cross-sell, with 85% of on-prem base still to migrate to SaaS.


**【CEO Summary Section】**
- SailPoint surpassed $1 billion in Annual Recurring Revenue (ARR) for the first time in Q3 FY2026, driven by a 28% year-over-year increase in ARR to $1.04 billion.
- Emphasized the shift to 'real-time adaptive identity' security, integrating identity, data, and security intelligence to address expanding threat landscapes.
- Highlighted rapid adoption of new products, including SailPoint Machine Identity Security (fastest-growing launch to date) and SailPoint Agent Identity Security, with cross-sell ARR growing more than 100% year-over-year.
- Introduced a flex licensing model to simplify customer adoption and accelerate time-to-value, with over half of platform modernizations including emerging cross-sell products.
- Highlighted confidence in the pipeline, with strong engagement across new and existing customers, and a focus on long-term growth through innovation and strategic differentiation.

**【CFO Financial Commentary】**
- Q3 revenue of $282 million, up 20% year-over-year, with subscription revenue growing 22%.
- Adjusted operating income of $56 million (19.8% margin), driven by disciplined expense management and higher term subscription revenue.
- Free cash flow of $49 million (17.4% margin), reflecting strong cash generation.
- Increased FY2026 ARR guidance to $1.122 billion (28% YoY growth), with Q4 ARR expected to grow 30% year-over-year.
- Q4 revenue guidance of $292 million (22% YoY growth), with adjusted EPS of $0.09 and operating margin of 20.2%.

**【Q&A Key Highlights】**
- **New Product Adoption**: Flex licensing model and Accelerated Application Management (SAAM) tool are accelerating greenfield and cross-sell opportunities, with 40% attach rate for new SaaS customers.
- **Pipeline Strength**: Q3 bookings for all new products introduced at Navigate conference, with strong interest in Agentic Identity Security and Observability & Insights.
- **Competitive Position**: Differentiated by breadth (human, machine, agent identities) and depth (entitlement context), with over 100,000 application integrations vs. competitors' sub-100.
- **AI Integration**: Internal AI adoption is a competitive advantage, with Harbor Pilot (AI-driven admin tool) and real-time identity governance capabilities.
- **SaaS Migration**: 15% of on-prem base migrated to Identity Security Cloud, with 2-3x ARR uplift, and 85% remaining opportunity.
- **Customer Expansion**: Net Revenue Retention (NRR) of 114% driven by cross-sell of Non-Employee Risk Management, Machine Identity Security, and Data Access Security.


SailPoint, Inc. (SAIL) Q3 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Net Income

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SAIL

SAIL fundamentals

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