SentinelOne Q1 Earnings Call Highlights

Key Points

• SentinelOne posted strong Q1 growth, with revenue up 21% year over year to $277 million and total ARR rising 23%. Net new ARR hit a record $44 million, up 55% from a year ago.
• AI, cloud and data security are becoming a bigger part of the business, with non-endpoint ARR nearing 50% for the first time. Management highlighted rapid growth in AI security, stronger data security adoption, and expanding use of products like Prompt Security and Purple AI.
• Profitability improved and guidance was raised for operating income, even as SentinelOne announced an 8% workforce reduction to cut complexity and save costs. The company kept its full-year revenue forecast unchanged but lifted fiscal 2027 non-GAAP operating income guidance to $115 million-$125 million.

SentinelOne NYSE: S reported a stronger start to fiscal 2027, with management pointing to accelerating annual recurring revenue growth, improving profitability and rising demand for AI-related cybersecurity products.

Chief Executive Officer Tomer Weingarten said the company delivered “strong revenue growth, record net new ARR growth, and significant operating margin improvement year-over-year” in the quarter ended April 30, 2026. Total ARR grew 23%, while net new ARR reached $44 million, up 55% from a year earlier and a company record, according to the company.

Chief Financial Officer Sonalee Parekh, who was participating in her first earnings call since joining the company, said revenue rose 21% year-over-year to $277 million. International revenue grew 25% and accounted for 39% of total revenue.

AI, Data and Cloud Drive Platform Mix

Weingarten said SentinelOne’s platform strategy continued to gain traction across AI, data, cloud and endpoint security. He said total ARR from non-endpoint products approached 50% for the first time, reflecting growth in AI security, data and cloud offerings.

AI security was a focus of management’s remarks. Weingarten said the company’s AI security ARR “nearly doubled again” in Q1, and he described Prompt Security as an enterprise-grade solution for securing AI usage. He cited a U.S. state government deal that included Prompt, Singularity Cloud and AI SIEM, as well as an “iconic enterprise” that selected Prompt over the AI offering of its incumbent endpoint vendor.

SentinelOne also launched Prompt AI Red Teaming in May, a product designed to test AI applications against attack scenarios before deployment. Weingarten said the offering creates a “land and expand” motion by identifying vulnerabilities during development while the company’s core platform blocks threats at runtime.

The company also highlighted Purple AI, its agentic security operations center offering. Weingarten said SentinelOne announced the general availability of Purple AI auto investigations during Q1, describing it as a step toward a fully autonomous SOC. He cited an IDC finding that Purple AI customers achieved a 338% return on investment.

In data security, Weingarten said Q1 marked the fourth consecutive quarter of ARR growth acceleration. He said customers are adopting SentinelOne’s AI SIEM for unified visibility, real-time detection and autonomous response. He cited wins including a luxury brand that displaced Splunk and a multinational services enterprise that signed a seven-figure expansion to replace an existing SIEM provider.

Profitability Improves as Company Announces Workforce Reduction

SentinelOne’s non-GAAP operating margin was 4% in Q1, exceeding the company’s expectations and improving by about 550 basis points year-over-year, Parekh said. Non-GAAP earnings per share were $0.04, up 83% from the prior-year period. Adjusted free cash flow margin on a trailing 12-month basis was 6.5%, improving by about 440 basis points.

Remaining performance obligations grew 30% to a record $1.5 billion. Parekh said SentinelOne ended the period with $812 million in cash, cash equivalents and investments, and no debt.

At the same time, the company announced a workforce optimization initiative affecting approximately 8% of employees. Weingarten said the move was “not a reactive measure,” but a deliberate effort to reduce complexity, improve productivity and focus resources on AI, data, cloud and endpoint security.

Parekh said SentinelOne expects to incur a one-time restructuring charge of about $25 million in the second quarter, excluded from non-GAAP results. Once fully implemented, the company expects annualized cost savings of approximately $45 million.

During the question-and-answer portion of the call, Weingarten said the company does not expect go-to-market disruption from the restructuring. He said the technology organization was “barely” affected and that SentinelOne would continue investing in innovation.

Guidance Reaffirmed for Revenue, Raised for Operating Income

For fiscal 2027, SentinelOne maintained its revenue outlook of $1.195 billion to $1.205 billion, representing 20% growth at the midpoint. For the second quarter, the company expects revenue of $289 million to $291 million, also representing 20% growth at the midpoint.

The company raised its non-GAAP operating income outlook for fiscal 2027 to a range of $115 million to $125 million, representing an operating margin of 10% at the midpoint. For Q2, SentinelOne expects operating income of $23 million to $25 million, or an 8% operating margin at the midpoint.

Full-year non-GAAP earnings per share are expected to be between $0.32 and $0.38, while Q2 EPS is expected to range from $0.06 to $0.08. The company expects a non-GAAP tax rate of approximately 17% for fiscal 2027.

Parekh said the outlook is supported by a solid pipeline, strategic partnership opportunities and rising contributions from emerging products, while noting that macroeconomic and geopolitical uncertainty could influence deal timing and sales cycles.

Customer Expansion and Partnerships Remain Key Themes

SentinelOne said customers with ARR of $100,000 or more grew 17% year-over-year, while ARR per customer reached a company record. Parekh said gross retention remained stable and net retention improved for customers spending at least $100,000 in ARR, driven by multi-product adoption.

Weingarten said SentinelOne Flex, the company’s purchasing model, has crossed $200 million in total contract value in three quarters since launch. He said Flex is helping simplify purchasing and driving larger seven- and eight-figure deals and longer-term commitments.

The company also highlighted expanded partnerships. Weingarten said SentinelOne expanded its partnership with LevelBlue, which he described as the world’s largest managed security services provider, to consolidate endpoint security onto the Singularity Platform over time. He also cited an expanded strategic alliance with Google Cloud and integration into AWS Security Hub Extended, allowing AWS customers to activate SentinelOne security directly from the AWS console.

Management framed the quarter as evidence that SentinelOne can improve profitability while continuing to invest in growth areas. “We don’t see growth and margin expansion as a trade-off in this case,” Parekh said, adding that the company is redeploying resources into areas where it sees the highest return and strongest opportunities.

About SentinelOne NYSE: S

SentinelOne, Inc is a cybersecurity company specializing in AI-driven, autonomous endpoint protection. Founded in 2013 and headquartered in Mountain View, California, the firm developed its Singularity Platform to unify prevention, detection, response, and hunting across endpoints, cloud workloads, containers and IoT devices. SentinelOne's solutions leverage machine learning and behavioral analytics to identify threats in real time, automate remediation workflows and deliver forensics to support rapid incident response.

The company's flagship product suite includes endpoint security agents, cloud workload protection, identity threat detection and extended detection and response (XDR) capabilities.

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