Tilly's Q2 Earnings Top Estimates, Revenue Down 7.1% YoY

Tilly's shares surged 4.9% after the specialty retailer reported Q2 earnings of $0.10 per share, beating expectations of -$0.03. Revenue came in at $151.3 million, slightly below consensus, and comparable sales declined 4.5% YoY. The company expects Q3 revenue between $134-140 million and a loss per share of -$0.35 to -$0.23, better than analysts' expectations.

SentinelOne Inc. (NYSE: S) reported robust financial performance in its second quarter, with total Annual Recurring Revenue (ARR) growing by 24% to exceed $1 billion. The company's net new ARR increased by $53 million, surpassing expectations, while revenue surged 22% year-over-year to $242 million. International revenue growth was particularly strong, increasing by 27% to account for 38% of total revenue.

Key highlights of SentinelOne's Q2 performance include:
- Customer Base Expansion: The number of customers with ARR of $100,000 or more grew by 23% to 1,513.
- Gross Margin: Maintained at 79%.
- Operating Profitability: Achieved a 2% operating margin.
- Net Income Margin: Remained positive at 5%.
- Free Cash Flow Margin: 2% on a trailing 12-month basis.
- Remaining Performance Obligations (RPO): Grew by 26% to $1.2 billion.
- Cash and Investments: $1.2 billion, with no debt.

SentinelOne also provided guidance for the third quarter and the full fiscal year. The company expects Q3 revenue to be approximately $256 million, representing a 22% year-over-year growth. For the full year, revenue is guided to be between $998 million and $1.02 billion, also at a 22% year-over-year growth rate. Gross margin guidance for Q3 is around 78.5%, with full-year gross margin expected to be between 78.5% and 79%. Operating margin guidance for Q3 is about 4%, with the full year expected to be around 3%.

The company's CEO, Tomer Weingarten, noted that the expansion of existing customer accounts and the adoption of the Singularity platform have been strategic drivers of growth. The introduction of SentinelOne Flex, a flexible licensing model, has been well-received, with an eight-figure total deal value. The acquisition of Prompt Security is expected to have a minimal immediate ARR impact but is seen as strategic for future AI governance and control.

Despite the strong performance, SentinelOne remains cautious about the second half of the year, citing a dynamic macroeconomic environment, potential variability in deal timing, and foreign exchange headwinds from a weaker US dollar. The company acknowledges the need for continued operational discipline and efficiency improvements.

References:
[1] https://finance.yahoo.com/news/sentinelone-inc-q2-2026-earnings-070945215.html