SentinelOne 2026 Q3 Earnings Beats Estimates with 23% Revenue Growth and 28% Net Loss Improvement

SentinelOne (S) delivered mixed results in its Q3 2026 earnings report, exceeding revenue and earnings expectations while issuing cautious guidance. The company reported $258.9 million in revenue, up 22.9% year-over-year, and narrowed its net loss to $60.29 million, a 23.1% reduction from the prior year. Despite these improvements, Q4 revenue guidance of $271 million fell short of analyst estimates, contributing to post-earnings stock volatility.

Revenue

SentinelOne’s total revenue rose to $258.91 million in Q3 2026, reflecting a 22.9% year-over-year increase from $210.65 million in Q3 2025. This growth underscores sustained demand for the company’s AI-native security solutions, particularly in non-endpoint segments like data and cloud security.

Earnings/Net Income

The company improved its net loss to $60.29 million for Q3 2026, a 23.1% reduction from $78.36 million in Q3 2025. Earnings per share (EPS) narrowed to a loss of $0.18, up from $0.25, marking a 28% improvement. While the reduction in losses is positive, the company has recorded net losses for six consecutive years, highlighting ongoing financial challenges. The EPS performance is a modest step toward profitability but remains a concern for long-term sustainability.

Post-Earnings Price Action Review

The stock’s post-earnings performance reflected investor caution. Shares dipped 0.70% on the day of the report but gained 6.46% over the following week. A 4.02% month-to-date decline underscored broader market skepticism. Despite the mixed reaction, historical data showed that buying shares on the earnings announcement date and holding for 30 days yielded a 15.6% total return, outperforming a buy-and-hold strategy. This dynamic rebalancing approach highlighted potential risk management and gain-capturing opportunities.

CEO Commentary

Tomer Weingarten, CEO, emphasized the company’s 23% year-over-year ARR growth, driven by new customer acquisition and non-endpoint solutions. He highlighted strategic initiatives like Purple AI and Observo AI as key differentiators, positioning SentinelOne as a leader in AI-driven security. The leadership expressed confidence in achieving “durable growth” and “sustainable profitability” despite ongoing losses.

Guidance

SentinelOne guided to FY2026 revenue of $1.001 billion (22% YoY growth) and Q4 revenue of $271 million (20% YoY growth). The company expects a non-GAAP operating margin of ~5% for Q4 and ~3% for the full year. While gross margins are projected at ~78.5%, strategic investments in cloud infrastructure and FX headwinds remain challenges.

Additional News

SentinelOne’s CFO, Barbara Larson, announced her departure in mid-January 2026, with Barry Padgett serving as interim CFO. The leadership transition, coupled with Q4 revenue guidance below analyst estimates, triggered investor concerns. The company also unveiled new AWS integrations, including Prompt Security for generative AI runtime protection and Observo AI for data pipeline optimization. These moves aim to strengthen its position in cloud and AI security.