SentinelOne 2026 Q3 Earnings Beats Expectations, Narrows Losses by 23.1%

Generated by AI AgentDaily EarningsReviewed byAInvest News Editorial Team
Friday, Dec 5, 2025 8:59 am ET1min read
Aime RobotAime Summary

-

SentinelOne
Q3 2026 revenue rose 22.9% to $258.9M, exceeding estimates and driven by AI cybersecurity demand.

- Net loss narrowed 23.1% to $60.

3M
, with EPS beat highlighting cost management progress despite six-year losses.

- CEO emphasized 23% ARR growth and AI expansion, while FY2026 revenue guidance increased to $1.001B.

- CFO transition and below-estimate Q4 guidance triggered 8.5% stock drop after acquiring Observo AI.

-

Cantor
Fitzgerald maintains Overweight rating ($22 target) citing cloud/AI security momentum despite margin pressures.

SentinelOne (S) reported Q3 2026 earnings that exceeded revenue and EPS estimates while narrowing losses year-over-year. The company raised full-year revenue guidance but cut gross margin forecasts.

Revenue

SentinelOne’s total revenue surged 22.9% year-over-year to $258.91 million in Q3 2026, surpassing the $256.16 million consensus estimate. This reflects sustained demand for its AI-driven cybersecurity platform.

Earnings/Net Income

The company narrowed its net loss to $60.29 million (loss per share: $0.18) in Q3 2026, a 23.1% reduction from the $78.36 million loss in Q3 2025. Despite this improvement,

SentinelOne
has posted losses for six consecutive years in this quarter, underscoring ongoing financial challenges. The EPS beat estimates, indicating progress in cost management.

Post-Earnings Price Action Review

The strategy of purchasing SentinelOne shares post-earnings and holding for 30 days showed moderate performance, with a 12.5% cumulative return over three years and an average annual return of 4.2%. This highlights short-term momentum captured by the strategy, though long-term sustainability remains untested.

CEO Commentary

CEO Tomer Weingarten highlighted Q3’s 23% year-over-year ARR growth, driven by new customer acquisition and AI platform adoption. He emphasized operating margin improvements as a milestone toward profitability and outlined strategic priorities: scaling non-Endpoint solutions, advancing AI capabilities like Purple AI, and acquiring Observo AI to enhance data pipelines.

Guidance

SentinelOne guided to FY2026 revenue of $1.001 billion (22% YoY growth) and Q4 revenue of $271 million (20% YoY growth). Operating margin is expected to reach 5% in Q4, a 400-basis-point improvement YoY, while gross margin guidance stands at 78.5% for FY2026 and 77.5% for Q4.

Additional News

SentinelOne announced CFO Barbara Larson’s departure in January 2026, with interim CFO Barry Padgett stepping in. This leadership transition, coupled with Q4 revenue guidance below analyst expectations, triggered an 8.5% post-earnings stock drop. The company also acquired Observo AI to strengthen data security offerings, signaling strategic bets on AI-driven solutions. Meanwhile, Cantor Fitzgerald maintained an Overweight rating with a $22 price target, citing strong RPO growth and product momentum in cloud and AI security.

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