SentinelOne's Q2 Revenue Surges 22%, Raises Full-Year Outlook Amid Earnings Beat

SentinelOne (S) shares soared 7.10% to $18.86 on their third day of gains, as the company's Q2 earnings beat expectations and its full-year revenue outlook was raised to $998-$1.002 bln. The company's revenue jumped 22% YoY to $242 mln, with annual recurring revenues breaking the $1 bln mark, a 24% YoY increase. However, net loss widened to $72 mln from $69 mln YoY.

SentinelOne Inc. (S) shares soared 7.10% to $18.86 on their third day of gains, following the company's Q2 earnings report that exceeded expectations. The cybersecurity firm reported a 22% year-over-year (YoY) increase in total revenue, reaching $242.18 million, and crossed the $1 billion mark in annual recurring revenue (ARR), up 24% YoY. However, the company's net loss widened to $72.02 million from $69.18 million YoY.

SentinelOne's adjusted earnings per share (EPS) came in at $0.04, surpassing the consensus estimate of $0.03 [1]. The company also raised its full-year 2026 revenue guidance to $998 million to $1.002 billion, with the midpoint of this range slightly above the analyst consensus of $998.6 million [1].

The company's CEO, Tomer Weingarten, highlighted the company's AI-powered platform, noting, "We surpassed $1 billion in ARR and delivered record net new ARR, continuing to deliver robust growth and platform adoption across AI, data, cloud, and endpoint" [1]. SentinelOne's gross margin remained at 75%, while non-GAAP gross margin improved to 79%. Operating margin improved to 2% from a loss of 3%, and net income margin increased to 5% from 2% [2].

For the third quarter of fiscal year 2026, SentinelOne expects revenue of $256 million, with a non-GAAP gross margin of 78.5% and non-GAAP operating margin of 4%. For the full fiscal year 2026, the company anticipates revenue of $998 to $1,002 million, with a non-GAAP gross margin of 78.5% to 79% and non-GAAP operating margin of 3% [2].

SentinelOne's strong Q2 performance and forward-looking guidance underscore its position as a leader in AI-powered cybersecurity. The company's ability to attract new customers, retain existing ones, and innovate in emerging markets positions it well for future growth.

References:
[1] https://www.investing.com/news/stock-market-news/sentinelone-beats-q2-earnings-estimates-raises-fullyear-outlook-shares-up-4215466
[2] https://finance.yahoo.com/news/sentinelone-fiscal-q2-earnings-snapshot-202521146.html