SentinelOne 2026 Q2 Earnings Negative Net Income Amid Revenue Growth

SentinelOne reported its fiscal 2026 Q2 earnings on Aug 28th, 2025. The company's results showed consistent revenue growth and stable EPS, but its net loss widened compared to the previous year, raising concerns about long-term profitability. Management provided an updated revenue outlook for the full year, highlighting confidence in future performance despite ongoing financial challenges.

SentinelOne (S) reported its fiscal 2026 Q2 earnings on Aug 28th, 2025. The total revenue of SentinelOne increased by 21.7% to $242.18 million in 2026 Q2, up from $198.94 million in 2025 Q2. The company maintained stable EPS at $-0.22 in 2026 Q2 compared to 2025 Q2. However, the company’s net loss widened to $-72.02 million in 2026 Q2, representing a 4.1% increase from the $-69.18 million loss recorded in 2025 Q2. The company has sustained losses for six years in the corresponding fiscal quarter, highlighting ongoing financial headwinds. While the revenue growth is positive, the deteriorating net income and continued losses indicate financial challenges that investors need to monitor closely.

The stock price of SentinelOne has edged up 2.03% during the latest trading day, has climbed 5.83% during the most recent full trading week, and has dropped 5.78% month-to-date. Despite the mixed short-term performance, the company’s long-term prospects remain tied to its strategic vision and financial adjustments.

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CEO Tomer Weingarten highlighted Q2 2026 as a landmark quarter, with total ARR growth of 24%, crossing $1 billion and record net new ARR driven by new customer additions, expansion, and AI and data solutions. He emphasized the company’s AI-powered cybersecurity leadership, platform adoption via SentinelOne Flex, and strategic acquisitions like Prompt Security to secure GenAI. Tomer noted strong momentum in cloud, endpoint, and data solutions, with Purple AI driving triple-digit growth and AI SIEM gaining traction. While expressing optimism about growth and platform differentiation, he acknowledged the dynamic macro environment and emphasized prudent assumptions for the second half. Tomer underscored the company’s mission to deliver AI-native security, unifying platforms to simplify operations and enhance protection across enterprises.

SentinelOne raised its full-year 2026 revenue outlook to $998 million to $1.02 billion ($1 billion midpoint), reflecting 22% year-over-year growth, with Q3 2026 revenue expected at approximately $256 million. For margins, the company expects Q3 gross margin of ~78.5% and full-year gross margin between 78.5% and 79%, with operating margin of ~4% in Q3 and ~3% for the full year. Barbara A. Larson, CFO, noted that the Prompt acquisition would have minimal revenue contribution in 2026 and an estimated 80 basis point impact on full-year operating margin. The company reaffirmed positive free cash flow for the year and emphasized disciplined growth while navigating macroeconomic uncertainties.

Additional News:
SentinelOne recently completed the acquisition of Prompt Security, a move aimed at enhancing its GenAI security capabilities. This strategic acquisition is expected to bolster SentinelOne’s AI-powered platform and expand its offerings in the AI security space. The company has also announced a leadership reshuffle, with Barbara A. Larson continuing to serve as CFO, reinforcing the company’s commitment to financial stability and strategic growth. Additionally, SentinelOne announced a new partnership with a leading cybersecurity firm to co-develop AI-driven threat detection solutions, further solidifying its position in the AI-native security market. These developments reflect SentinelOne’s proactive approach to innovation and its focus on long-term value creation.