Reported results
- Revenue was $875.7 million, a 9% year-over-year increase including a 1.3% benefit from foreign exchange rates.
- GAAP net income per diluted share was $0.40 on 193 million shares outstanding, compared to $0.30 on 211 million shares outstanding in the same period last year.
- Non-GAAP net income per diluted share was $1.16 on 193 million shares outstanding, compared to $0.92 on 211 million shares outstanding in the same period last year.
- GAAP gross margin was 79.7% compared to 79.3% in the same period last year; non-GAAP gross margin was 81.7% compared to 82.0% in the same period last year.
- Free cash flow was $295.8 million, or a 34% margin, compared to $217.6 million, or a 27% margin, in the same period last year.
- IAM represented 15.1% of total Annual Recurring Revenue as of July 31, 2026, compared to 12.6% as of April 30, 2026.
Guidance
- Q3 FY2027 (three months ended October 31, 2026): Revenue $886 to $890 million (9% YoY midpoint change); non-GAAP gross margin 81.5% to 81.9%; non-GAAP operating margin 31.3% to 31.7%; non-GAAP diluted weighted-average shares outstanding 191 to 196 million.
- FY2027 (year ended January 31, 2027): Revenue $3,499 to $3,507 million (9% YoY midpoint change); annual recurring revenue year-over-year growth rate 8.50% to 9.00%; non-GAAP gross margin 81.5% to 82.0%; non-GAAP operating margin 31.0% to 31.5%; non-GAAP diluted weighted-average shares outstanding 190 to 195 million; IAM expected to represent approximately 18% to 19% of total ARR exiting Q4 FY2027.
Notes
Foreign exchange rates benefited Q2 revenue by approximately 1.3%; excluding FX impact, Q3 guidance revenue growth would be approximately 1.0 percentage points lower and FY2027 guidance would be approximately 1.2 percentage points lower. The company increased FY2027 guidance for revenue, ARR, and IAM’s percentage of total ARR.
Price and volatility reaction
The stock moved +3.7% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -19.5 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 65.97 | 2026-09-03 |
| Close after release | 68.41 | 2026-09-04 |
| Realised move | +3.7% | close to close |
| 30d ATM IV change | -19.5 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-03 (8-K, Item 2.02). Read the original filing on sec.gov.