SentinelOne Inc - Class A
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.56%.
Did S Beat Earnings? Q3 2026 Results
SentinelOne delivered a standout third quarter for fiscal 2026, posting results that cleared Wall Street's bar on both the top and bottom lines and extending the company's streak of consensus EPS beats to five consecutive quarters. Revenue came in at $258.91 million, up 22.9% year-over-year and just ahead of the $256.18 million consensus, while non-GAAP diluted EPS of $0.07 beat the $-0.175 estimate by 140.00%, powered by a nearly 1,200 basis point swing in non-GAAP operating margin to 7% from negative 5% a year ago. The profitability inflection was driven by operating leverage as the company scaled past $1.06 billion in annualized recurring revenue, up 23% year-over-year, with roughly half of quarterly bookings sourced from emerging data, AI, and cloud products. Free cash flow turned meaningfully positive at $15.90 million, compared to negative $12.65 million in the prior-year period. Some analysts have flagged the stock as deeply undervalued relative to its AI security positioning, though the Q4 revenue guidance of $271 million, implying 20% growth, struck some investors as cautious, with full-year fiscal 2026 revenue guided at $1.00 billion.
- 23% year-over-year ARR growth reaching $1,055.3 million
- 20% growth in customers with ARR of $100,000 or more to 1,572
- Record ARR per customer driven by increasing platform adoption
- Nearly 1,200 basis point year-over-year improvement in non-GAAP operating margin
- Non-GAAP operating margin turned positive at 7%
- Free cash flow margin improved to 6% from -6% year-over-year
“We continue to demonstrate a strong combination of top-tier growth and margin improvement. Our third-quarter performance underscores the growing demand for our AI-native security platform that combines data, intelligence, and defense.”
SentinelOne CEO, on the earnings call
Forward Guidance & Outlook
For Q4 FY2026, SentinelOne guides revenue of $271 million (20% year-over-year growth), non-GAAP gross margin of 77.5%, and non-GAAP operating margin of 5%. For full fiscal year 2026 (ending January 31, 2026), the company guides revenue of $1,001 million (22% growth), non-GAAP gross margin of 78.5%, and non-GAAP operating margin of 3%. The full-year outlook incorporates approximately 1% revenue impact from end-of-sale of the Hologram (deception) solution, strategic investments in cloud infrastructure and capacity expansion impacting gross margin, and operating margin headwinds of approximately 120 bps from FX, 70 bps from the Prompt Security acquisition, and 60 bps from the Observo AI acquisition.
S YoY Financials
Figures from SEC filings and company reports. Not investment advice.