SentinelOne Inc - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.63%.
Did S Beat Earnings? Q2 2026 Results
SentinelOne delivered a standout second quarter for fiscal 2026, posting earnings per share of $0.04 against a consensus estimate of negative $0.19, a beat of 120.90% that extended the company's streak of topping EPS estimates to four consecutive quarters. Revenue of $242.18 million grew 21.7% year over year, edging past the $242.17 million consensus while the company crossed $1.00 billion in annualized recurring revenue, which expanded 24% from a year earlier. The clearest driver of the profit swing was a meaningful shift in operating leverage, with non-GAAP operating margin improving more than 500 basis points to positive 2.2%, while emerging products spanning data, AI, and cloud contributed roughly half of quarterly bookings, with Purple AI maintaining triple-digit growth. The company's acquisition of Prompt Security, positioning SentinelOne in AI runtime security, has drawn attention from enterprise customers and government bodies alike, adding a strategic dimension to an already broadening platform. Management raised full-year revenue guidance to $998 million to $1.00 billion and guided Q3 revenue to $256 million, reaffirming a 3% non-GAAP operating margin target for the full year.
- ARR surpassed $1 billion, growing 24% year-over-year
- Record net new ARR in Q2 with 22% year-over-year growth
- Approximately 50% of quarterly bookings from emerging products (data, AI, cloud, and others)
- Data segment posted accelerated bookings growth and record contribution to quarterly bookings
- Record ARR per customer driven by increasing platform adoption
- 23% growth in customers with ARR of $100,000 or more to 1,513
- Non-GAAP operating margin improved over 500 bps year-over-year to 2.2%
“We surpassed $1 billion in ARR and delivered record net new ARR, continuing to deliver robust growth and platform adoption across AI, data, cloud, and endpoint.”
SentinelOne CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY2026, SentinelOne guided revenue of $256 million (22% year-over-year growth), non-GAAP gross margin of 78.5%, and non-GAAP operating margin of 4%. For full fiscal year 2026 (ending January 31, 2026), the company raised its revenue outlook to $998-$1,002 million (22% growth), with non-GAAP gross margin of 78.5-79% and non-GAAP operating margin of 3%. Full-year guidance includes approximately 1% headwind from the end-of-sale of the Hologram deception solution, ~100 bps anticipated FX headwind from a weaker U.S. dollar, and ~80 bps impact from the Prompt Security acquisition. Management reaffirmed commitment to full-year operating profitability and free cash flow.
S YoY Financials
Figures from SEC filings and company reports. Not investment advice.