SentinelOne 2026 Q3 Earnings Narrowed Net Loss by 23.1%

SentinelOne (S) reported fiscal 2026 Q3 earnings on Dec 4, 2025, with revenue rising 22.9% to $258.91 million, surpassing Wall Street estimates by $2.72 million. Non-GAAP EPS of $0.07 beat estimates by $0.02, while Q4 revenue guidance of $271 million fell slightly short of expectations. The stock initially dipped 6% post-earnings due to conservative guidance despite strong performance.

Revenue

Total revenue surged 22.9% year-over-year to $258.91 million, reflecting robust demand for AI-driven security solutions. The company exceeded Wall Street’s $256.16 million consensus estimate, driven by 23% year-over-year growth in annual recurring revenue (ARR) to $1.06 billion.

Earnings/Net Income

SentinelOne narrowed its net loss to $60.29 million in Q3 2026, a 23.1% reduction from $78.36 million in Q3 2025. Non-GAAP EPS improved to $0.07, outpacing estimates of $0.05. While the company reduced losses, it has sustained net losses for six consecutive years, underscoring ongoing financial challenges.

Post-Earnings Price Action Review

The stock price dipped 0.70% on the latest trading day but gained 6.46% over the preceding week. Month-to-date, it fell 4.02%. A 30-day post-earnings strategy yielded a 12.5% cumulative return over three years, averaging 4.2% annually, demonstrating short-term momentum potential.

CEO Commentary

CEO Tomer Weingarten highlighted 23% ARR growth, driven by new customer acquisition and non-Endpoint solutions expansion. He emphasized AI innovation, including Observo AI and Prompt Security, and expressed confidence in Barry Padgett’s interim CFO role as the company navigates strategic scaling.

Guidance

SentinelOne guided to FY2026 revenue of $1.001 billion (22% YoY growth) and Q4 revenue of $271 million (20% YoY growth). Full-year operating margin is expected to exceed 3%, with Q4 at ~5%, reflecting 600 bps improvement YoY.

Additional News

1. CFO Transition: CFO Barbara Larson will leave in mid-2026, with Barry Padgett stepping in as interim CFO.

2. AWS Integrations: Expanded partnerships with AWS, including automated security hub tools and new AI offerings on AWS Marketplace.

3. AI Expansion: Launched Singularity Hyperautomation for AWS security and appointed Ana Pinczuk as president of product and technology to accelerate AI-driven solutions.

SentinelOne’s Q3 results underscored its commitment to AI-powered security, with improved margins and strategic alliances. However, market skepticism lingered due to Q4 guidance below expectations and leadership transitions. Investors remain focused on its ability to sustain growth amid competitive pressures in the cybersecurity sector.