SentinelOne Q4 Earnings Call Highlights

Key Points

• SentinelOne hit "billion-dollar revenue" scale in fiscal 2026, growing revenue 22% YoY with a company-record $64 million net new ARR in Q4 and full-year operating profitability; management guided fiscal 2027 revenue to $1.195–1.205 billion (~20% growth) and operating income of $110–120 million (≈10% margin).
• Singularity Platform and AI/security products are driving adoption, with non-endpoint solutions exceeding half of bookings and enterprise customers using three-or-more solutions rising to 65%; notable traction included Prompt Security ARR more than doubling sequentially, data solutions >$130M ARR, cloud security >$160M ARR, and Wayfinder surpassing $100M ARR.
• Strong margins, cash position and shareholder returns: Q4 gross margin was 78% with a 9% net income margin, the company delivered positive free cash flow for a second year, finished with $770M cash and no debt, and repurchased 12.2 million shares in fiscal 2026; SentinelOne also named Sonali Parekh as its new CFO.

SentinelOne NYSE: S executives highlighted a “landmark year” on the company’s fiscal 2026 earnings call, pointing to a move past $1 billion in annual revenue, record net new annual recurring revenue (ARR) in the fourth quarter, and full-year operating profitability.

Fiscal 2026 milestones and Q4 performance

CEO Tomer Weingarten said fiscal 2026 marked SentinelOne’s first year at “a billion-dollar revenue scale,” with revenue growth of 22% year-over-year. He also emphasized the company’s shift toward “profitable growth,” noting SentinelOne delivered full-year operating profitability.

In the fiscal fourth quarter, management said total ARR grew 22%, supported by both new logo wins and expansion within the existing customer base. The company posted $64 million in net new ARR in Q4, which Weingarten described as a company record and its third consecutive quarter exceeding ARR expectations. He said roughly half of new business came from new customers, creating what he characterized as a balanced split between new logo acquisition and customer expansion.

Interim CFO Barry Padgett reported Q4 revenue of $271 million, up 20% year-over-year. International revenue grew 30% and represented 40% of total revenue. Padgett added that ARR per customer reached a company record as the company continued a strategic shift upmarket.

Platform adoption and product traction

Weingarten positioned the Singularity Platform as a unified, AI-native security offering spanning “seven core solution categories” and “more than 40 different modules.” He said non-endpoint solutions surpassed half of total annual bookings in fiscal 2026.

Management also described rising multi-product adoption among enterprise customers. Weingarten said the percentage of enterprise customers using three or more solutions rose to 65% from 39% a year earlier, while those using four or more solutions increased to 42% from 19%, and those using five or more increased to 22% from 9%.

Several solution areas were called out on the call:

• Purple: Weingarten said Purple attach rates exceeded 50% of licenses sold in Q4, a record. He cited an IDC study stating Purple users experienced 55% faster threat remediation, 60% lower likelihood of major incidents, and a 338% return on investment over three years.
• AI security / Prompt Security: Weingarten said ARR from Prompt Security more than doubled sequentially in Q4, including standalone AI security deals with Fortune 500 companies. He also described customer examples, including a Fortune 100 financial services company deploying nearly 100,000 licenses for AI security and governance.
• Data solutions: Weingarten said data solutions surpassed $130 million in ARR, with growth accelerating sequentially. He said the company launched an AI-native Data Security Posture Management (DSPM) product in Q4 and had fully integrated Observe.AI’s data pipeline into Singularity. He also noted the company was named SIEM Innovation of the Year in the Cybersecurity Breakthrough Awards.
• Cloud security: Weingarten said cloud security surpassed $160 million in ARR in Q4, with demand tied to expanding cloud environments and increasing AI workloads.
• Wayfinder threat services: Weingarten said Wayfinder crossed $100 million in ARR in Q4 and described it as a managed “supervision layer” for AI cybersecurity, pairing human oversight with autonomous technology.

Enterprise wins, partners, and public sector progress

Weingarten highlighted several customer and partner-related developments. He cited Cloudflare as an example of an enterprise win, saying the company moved to SentinelOne in less than 24 hours after a proof of concept and selected SentinelOne to replace a competitor. The deal was described as seven figures and included endpoint security, Purple, and Wayfinder Elite services.

Weingarten also discussed a five-year commitment with a large global postal operator, where on-premise security and meeting government standards were described as deciding factors. He said SentinelOne saw triple-digit booking growth in highly restricted on-premise environments during the quarter, calling it an emerging growth opportunity.

On the partner side, Weingarten said SentinelOne continued to expand across the managed security ecosystem. He cited fiscal 2026 results showing over 60% ACV growth with the top 20 MSSP partners and over 75% ACV growth with the top 10 MSSP partners. He also noted an eight-figure strategic partner win in Q4 that provided access to the full Singularity Platform through a flexible deployment schedule.

In the public sector, management said SentinelOne achieved FedRAMP authorization at the high impact level, which Weingarten said opens additional opportunities across federal and state, local, and education (SLED) customers.

Margins, cash flow, and share repurchases

Padgett said SentinelOne maintained a 78% gross margin in Q4 and posted a 6% operating margin, an improvement of 450 basis points year-over-year. He also reported a 9% net income margin in the quarter.

On a trailing twelve-month basis, Padgett said the company delivered a 5% free cash flow margin and achieved its second full year of positive free cash flow. SentinelOne ended the year with $770 million in cash, cash equivalents, and investments, with no debt, according to Padgett.

Padgett said the company repurchased 6.5 million shares in Q4, bringing total repurchases to 12.2 million shares during fiscal 2026. He added that SentinelOne intends to continue a balanced capital allocation approach, prioritizing organic investment while returning capital to shareholders.

Outlook for fiscal 2027 and leadership update

For fiscal 2027, Padgett guided revenue to $1.195 billion to $1.205 billion, implying 20% year-over-year growth at the midpoint. For fiscal Q1, SentinelOne expects revenue of $276 million to $278 million, implying 21% growth at the midpoint. Padgett said the fiscal 2027 revenue outlook “also implies a year-over-year improvement in net new ARR,” while noting ongoing monitoring of macroeconomic and geopolitical uncertainty that can affect deal timing and sales cycles.

On profitability, SentinelOne guided fiscal 2027 operating income of $110 million to $120 million, or a 10% operating margin at the midpoint. For Q1, the company expects operating income of $4 million to $6 million, or a 2% operating margin at the midpoint. SentinelOne also introduced non-GAAP earnings per share guidance, forecasting $0.32 to $0.38 for fiscal 2027 and $0.01 to $0.02 for Q1. Padgett said the company expects a non-GAAP tax rate of about 17% for fiscal 2027.

Weingarten told analysts the company does not expect significant headcount growth, saying sales productivity is expected to improve. In Q&A, management also discussed quarter-to-quarter cash flow lumpiness tied to large deal timing and noted revenue in Q4 was more back-end loaded.

The call also included a leadership update: Weingarten announced Sonali Parekh as SentinelOne’s new chief financial officer, while thanking Padgett for serving as interim CFO and supporting the transition.

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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