Aug 27, 2026, 4:08 PM ETTechnology

SentinelOne — Second Quarter Fiscal Year 2027 Earnings Summary

SSENTINELONE INC

Financial Performance

Total revenue grew 21% year-over-year to $292 million, compared to $242 million in Q2 FY2026.
Annualized recurring revenue (ARR) grew 22% year-over-year to $1.218 billion as of July 31, 2026.
Customers with ARR of $100,000 or more grew 13% to 1,715 as of July 31, 2026.
GAAP gross margin was 72%, down from 75% in the prior year period; Non-GAAP gross margin was 77%, down from 79%.
GAAP operating margin was (31)%, compared to (33)%; Non-GAAP operating margin was 10%, compared to 2%.
GAAP net loss margin was (32)%, compared to (30)%; Non-GAAP net income margin was 10%, compared to 5%.
GAAP diluted earnings per share was $(0.27), compared to $(0.22); Non-GAAP diluted earnings per share was $0.08, compared to $0.04.
Cash, cash equivalents, and investments totaled $813 million as of July 31, 2026.
For the six months ended July 31, 2026, GAAP net loss was $169.6 million compared to $280.2 million in the prior year period.
Free cash flow for the six months ended July 31, 2026, was $17.5 million, compared to $38.3 million in the prior year period.

Raised revenue guidance for fiscal year 2027 to $1.202 – $1.207 billion.
Raised non-GAAP operating income guidance for fiscal year 2027 to $124 – $128 million.
Raised non-GAAP diluted EPS guidance for fiscal year 2027 to $0.30 – $0.32.
Provided Q3 FY2027 revenue guidance of $309 – $311 million.
Provided Q3 FY2027 non-GAAP operating income guidance of $38 – $40 million.
Provided Q3 FY2027 non-GAAP diluted EPS guidance of $0.08 – $0.09.
Adopted a 17% non-GAAP tax rate effective in the first quarter of fiscal year 2027.

Management highlighted the platform model and AI-native runtime protection as fundamental to the Singularity platform's architecture.
Emphasized technology leadership in "AI for Security" and "Security for AI."
No specific segment revenue breakdowns or new product launch dates were provided in the text.

Management described the market as having intense competition.
Identified the growing prevalence and sophistication of AI models as a key market trend.
Noted that the platform is positioned to lead the future of AI cybersecurity.

Risks include limited operating history, history of losses, and intense competition.
Potential risks involve network or security incidents, defects, errors, or vulnerabilities in the platform.
Challenges include managing rapid growth, integrating acquisitions, and evolving technological developments.
Macroeconomic risks include inflation, interest rate volatility, geopolitical conflicts, and changes in U.S. federal spending or trade policy.
Specific risks include the ability to attract and retain customers, sales cycle length, and securities class action litigation.
Mention of a final Assessment Agreement with the Israeli Tax Authority (ITA) impacting tax provisions.

CEO Tomer Weingarten described Q2 performance as demonstrating "strong progress across every dimension" with a "top-tier growth profile."
CFO Sonalee Parekh characterized Q2 as an "exceptional quarter of execution" with "record profitability."
Management stated they are "scaling the business with discipline" while investing in AI growth opportunities and driving operating leverage.
The tone was confident, citing the achievement of exceeding all top and bottom line guided metrics.

The company raised its revenue and operating income outlook for the full fiscal year 2027.
The press release includes a webcast scheduled for August 27, 2026, at 2:00 p.m. Pacific Time.
Non-GAAP financial measures exclude stock-based compensation, employer payroll tax on stock transactions, amortization of acquired intangible assets, acquisition-related compensation costs, restructuring charges, and gains/losses on strategic investments.
GAAP operating expenses for the quarter included $24.4 million in restructuring charges.
The company reported a net loss on strategic investments of $5.1 million for the six months ended July 31, 2026.