SailPoint Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian Essex - JPMorgan Chase & Co - Analyst : Right. Congratulations on a strong quarter, guys. Maybe, Brian, for you, could you peel back a layer on the guidance a little bit? I caught the commentary about the upfront revenue recognition from the renewals on the federal side. But we'd love to dig into that and understand the impact on ARR from the non-SaaS ARR. And how you think -- like did anything change with regard to the methodology of your guidance? It seems like ARR guidance was increased a bit more last quarter than it was this quarter. Just would love a little additional color there. And then maybe adjacent to that Fed comment, like confidence in the -- going into next quarter, which is obviously a seasonally heavy Fed quarter. Thank you.

Question: Meta Marshall - Morgan Stanley - Analyst : Great. Appreciate the question. I guess just diving a little bit further into that. Just the net new ARR decel in Q3 from Q2? And then just what gives you confidence in the pickup in Q4? Just a little bit more diving into the Q3, Q4 dynamics would be helpful.

Question: Todd Weller - Stephens Inc - Analyst : Let me echo my congratulations, and thanks for the question. Mark, can you talk about machine identity, it's a complex market, all sorts of types of identities that are out there on search to secrets and cloud ops to emerging role of Agentic. And I know Agentic is coming soon, but maybe today, where are you seeing the most opportunity? What are the use cases driving your machine identity solution? And competitively, what are you seeing in those instances?

Question: Jonathan Ruykhaver - Cantor Fitzgerald LP - Analyst : Yeah, good morning. So I'd be curious to hear your thoughts on the AI-driven connector integration. I mean, just from my perspective, it seems it turns what has been more of a passive pipeline for access data into, let's call it, an enabler of more intelligent and automated actions. It seems to open up your use cases around risk detection potentially better context around access control. So I'd love to hear your thoughts on this opportunity. Is it going to be a part of the upcoming agent identity security solution? Is it separate? And what are the incremental monetization opportunities?

Question: Jonathan Ruykhaver - Cantor Fitzgerald LP - Analyst : Yeah. Got it. Thanks, Mark.

Question: Robbie Owens - Piper Jaffray Inc - Analyst : Good morning guys, thanks for taking my question. Mark, in your prepared remarks, you talked a lot about modernization and just would love you to double-click a little bit on where a lot of customers are at this point? How much legacy still remains within that installed base? And with a record new logo ARR quarter, do you think we're starting to see a tipping point just in terms of a transformation of identity within that legacy base? Thanks.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Hi, good morning. Thank you. Mark and Brian, I think you've been pretty consistent in saying that the mix of your business between SaaS and Term will ebb and flow. My question for you is how do we think about what that ebb and flow might look like over the next 12 months? What I mean is, is it possible that you seen an adoption conversion to some of your most tech savvy customers in the first phase of cloud adoption or the first phase of cloud migrations. And now perhaps in a little bit more of an ebb, where it might take longer for the next phase of cloud migrations. Just curious what you're seeing in the pipeline and some of your larger customer conversations as well.

Question: Saket Kalia - Barclays Services Corp - Analyst : Okay. Great. Hey, guys, thanks for taking my question here. Mark, maybe for you, can you just talk a little bit about the relative difference in pricing for identity in machines versus humans? I mean to your point, it feels like customers are finally seeing that as an attack surface, how are they sort of -- how are they willing to pay for that governance versus what they're paying for human identities? Brian, if I can squeeze in a clarification because I think it's important, can you just remind us also what drove that tough comp last year on net new ARR and how you think about that on a more

Question: Saket Kalia - Barclays Services Corp - Analyst : All super helpful. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, SAIL.OQ - Q2 2026 SailPoint Inc Earnings Call

Question: Tal Liani - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hi, most of the questions about the quarter were answered. I want to ask you more about the market. So I want to -- we spoke with one of your competitors who made the big acquisition in identity recently. And what they're saying, and I want to hear your comment on this is, number one, as the price of privileged access is coming down and the ease of the deployment is becoming easier, more customers will do privileged versus REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, SAIL.OQ - Q2 2026 SailPoint Inc Earnings Call regular employee identity because it is just more rigorous, better solution. And that will take away from the traditional players like yourself. And the second thing that they said is identity was sold so far stand-alone, it's going to be part of a platform. You'll sell it with cloud security with other things. And so far, this market was very stand-alone kind of market. So just wanted to hear your views on these topics just because it relates to future growth and future opportunity, et cetera.

Question: Tal Liani - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Got it. Thank you.

Question: Gregg Moskowitz - Mizuho Securities USA LLC - Analyst : Great. Thank you for taking the question. Accelerated application management, very interesting technology. Mark, can you elaborate on how you will enhance this with the assets from Savvy later this year? Also, what is the competitive landscape like in this area today? Thanks.

Question: Gregg Moskowitz - Mizuho Securities USA LLC - Analyst : Very helpful. Appreciate them, Mark. Thank you.

Question: Keith Bachman - Bank of Montreal - Analyst : Hi, yes, thank you. Good morning. My -- I wanted to ask two questions. One, to follow on Mosko's question is, if you think about the application segment, what are customers -- are you displacing existing solutions? And part B, the question is really when could this be in a position -- this aggregate segment be in a position whereby it could contribute to net new ARR growth? Is it next year? And then my second question is hoping you could just talk a little bit about your customer growth or what to expect in terms of new logo growth over the next number of quarters? And part of it is all the things you're doing on Agentic, how might that pull customers, the breadth of solution you have, your 250,000 ARR customer count has gone up by 27%. I understand that, but that also includes customers that upsell into that category. So just trying to get a little more granularity beyond how your customer count may help contribute to total growth over the next number of quarters? That's it for me. Thank you.

Question: Gray Powell - BTIG LLC - Analyst : Okay. Great. Thanks for taking the question. And yeah, I hear that Gary Powell guy is a pretty good analyst. He's been following me down for a while.

Question: Gray Powell - BTIG LLC - Analyst : Okay. So a lot of good questions have been asked. Maybe just a high-level macro one. There's a lot of uncertainty in the macro environment around tariffs back in April and May. Just how much have things changed in the last three or four months, if at all, just how does your visibility on demand in your pipeline field today versus a few months ago? Thanks.

Question: Gray Powell - BTIG LLC - Analyst : Alright. Got it. Thank you very much.