SentinelOne 2026 Q3 Earnings Narrowed Net Loss by 23.1% Despite Ongoing Challenges

SentinelOne (S) reported fiscal 2026 Q3 earnings on Dec 4, 2025, surpassing revenue and non-GAAP EPS estimates but delivering weaker-than-expected Q4 guidance. The stock fell 6% post-announcement due to muted forward-looking metrics and leadership transitions, despite improved profitability and 23% ARR growth.

Revenue

SentinelOne’s total revenue rose 22.9% year-over-year to $258.91 million, exceeding the $256.16 million consensus estimate. The growth was driven by broad adoption of its AI-native Singularity platform and non-Endpoint solutions, including 40% Purple AI attach rates.

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 ($0.25 loss/share) in Q3 2025. While losses improved, SentinelOne has posted net losses for six consecutive years, underscoring persistent financial challenges. Despite narrowing losses, sustained profitability remains elusive.

Post-Earnings Price Action Review

The strategy of buying SentinelOne shares on its earnings date and holding for 30 days showed positive returns, with an optimized portfolio achieving an expected return of 0.2537% and a CVaR (95%) of 2.5700% over three years. This indicates risk-managed performance, supported by a low maximum drawdown. However, post-earnings volatility intensified, with the stock dropping 0.70% in the latest trading day and 4.02% month-to-date.

CEO Commentary

CEO Tomer Weingarten highlighted 23% year-over-year ARR growth, driven by new customer acquisition and platform expansion. He emphasized momentum in non-Endpoint solutions and triple-digit data solutions growth, while announcing the Observo AI acquisition to enhance autonomous security operations. Leadership remains optimistic about “sustainable profitability” despite a CFO transition to interim CFO Barry Padgett.

Guidance

SentinelOne guided Q4 2026 revenue of $271 million (20% YoY growth) and full-year revenue of $1.001 billion (22% YoY growth). Operating margin is expected to exceed 3% for FY26, with Q4 at ~5%, reflecting 600 bps improvement YoY. Gross margin guidance stands at 77.5% for Q4 and 78.5% for FY26, incorporating 60 bps drag from acquisitions and FX.

Additional News

1. Leadership Transition: CFO Barbara Larson will depart in mid-2026, with Barry Padgett serving as interim CFO.

2. AWS Integration: Expanded Singularity platform integrations with AWS, including Hyperautomation for AWS Security Incident Response, to strengthen cloud-centric offerings.

3. Stock Reaction: Shares fell 6% after Q4 revenue guidance of $271 million fell short of the $273.5 million consensus, despite strong Q3 results.