SentinelOne Inc - Class A
Q1 2027 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.42%.
Did S Beat Earnings? Q1 2027 Results
SentinelOne delivered a notably strong profitability story in its fiscal first quarter of 2027, posting non-GAAP EPS of $0.04 against a consensus estimate of negative $0.24, a beat of 116.90% that extended the company's streak of topping EPS estimates to six consecutive quarters. Revenue came in at $276.66 million, up 20.8% year-over-year and fractionally below the $277.43 million consensus by just 0.28%, with the headline growth story driven by accelerating momentum in annual recurring revenue, which reached $1.16 billion, up 23% year-over-year. A key engine behind the profitability swing was a roughly 550 basis point improvement in non-GAAP operating margin, lifting the company to $10.54 million in non-GAAP operating income from a loss of $3.93 million a year ago, even as a discrete $30.66 million Israeli tax payment weighed on reported free cash flow. The company also announced an 8% workforce reduction alongside its results, pairing cost discipline with reaffirmed full-year revenue guidance of $1.20 billion to $1.21 billion and raised non-GAAP operating income guidance of $115 million to $125 million.
- ARR growth accelerated to 23% year-over-year driven by record net new ARR of $44 million (55% y/y growth)
- Non-endpoint solutions (Data, AI, Cloud) reached approximately 50% of total company ARR
- Non-GAAP operating margin improved approximately 550 basis points year-over-year to 4%
- 17% year-over-year growth in customers with ARR of $100,000 or more to 1,702
- Enterprise customers increasingly adopting multiple solutions: 75%+ y/y growth in customers with 3+ solutions, 120%+ with 4+ solutions, 150%+ with 5+ solutions
- Improvement in net retention rate for $100K+ ARR customers both year-over-year and quarter-over-quarter
“We had a solid start to the year, highlighted by record net new ARR growth and a landmark milestone as our emerging solutions reached half of our total company ARR. We are actively pushing the frontier of autonomous, agentic defense across AI, Data, Cloud, and the Endpoint. Enterprises recognize that securing the AI era requires machine speed defense which only truly modern infrastructure can deliver, and they are choosing SentinelOne as the foundation to build upon.”
SentinelOne CEO, on the earnings call
Forward Guidance & Outlook
For Q2 FY2027, SentinelOne expects revenue of $289-291 million, non-GAAP operating income of $23-25 million, and non-GAAP diluted EPS of $0.06-$0.08 on approximately 347 million diluted shares. For full-year FY2027, the company guides revenue of $1.195-$1.205 billion, non-GAAP operating income of $115-$125 million (raised from prior outlook), and non-GAAP diluted EPS of $0.32-$0.38 on approximately 350 million diluted shares. The company adopted a 17% non-GAAP tax rate for current and future periods.
S YoY Financials
Figures from SEC filings and company reports. Not investment advice.