SentinelOne (NYSE:S) Releases Earnings Results, Beats Expectations By $0.01 EPS

SentinelOne (NYSE:S) posted its quarterly earnings results on Thursday. The company reported $0.08 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.01, FiscalAI reports. SentinelOne had a negative net margin of 30.39% and a negative return on equity of 15.35%. The company had revenue of $291.98 million for the quarter, compared to analysts’ expectations of $290.24 million. During the same quarter in the previous year, the firm posted ($0.22) EPS. SentinelOne’s revenue was up 20.6% on a year-over-year basis. SentinelOne updated its FY 2027 guidance to 0.300-0.320 EPS and its Q3 2027 guidance to 0.080-0.090 EPS.

Here are the key takeaways from SentinelOne’s conference call:

• Q2 exceeded expectations, with revenue up 21% year over year to $292 million, record $56 million net new ARR, a 10% operating margin, and adjusted EPS of $0.08.
• SentinelOne raised its FY 2027 revenue outlook to $1.202 billion–$1.207 billion and operating income outlook to $124 million–$128 million, implying approximately 20% revenue growth and a 10% operating margin at the midpoint.
• AI security ARR from Prompt Security and Purple AI tripled year over year, while data and cloud ARR growth accelerated; management expects AI security to become its next nine-figure ARR category.
• Enterprise expansion and platform consolidation remain strong, reflected in larger seven- and eight-figure deals, improving retention among customers spending over $100,000 annually, record ARR per customer, and RPO growth accelerating to 45%.
• Management expects continued margin expansion but plans to reinvest in AI products, go-to-market efforts, and partner channels, meaning the pace of margin improvement should moderate in the second half despite the raised full-year outlook.

SentinelOne Trading Up 11.1%

Shares of SentinelOne stock opened at $22.79 on Friday. The company’s 50-day moving average price is $19.20 and its 200-day moving average price is $16.25. SentinelOne has a 12-month low of $11.81 and a 12-month high of $23.95. The company has a market cap of $7.81 billion, a price-to-earnings ratio of -23.74 and a beta of 0.79.

Insider Activity at SentinelOne

In related news, insider Ana G. Pinczuk sold 16,042 shares of the company’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $17.89, for a total transaction of $286,991.38. Following the sale, the insider owned 743,946 shares of the company’s stock, valued at approximately $13,309,193.94. This represents a 2.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Barry L. Padgett sold 15,460 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $17.89, for a total transaction of $276,579.40. Following the completion of the sale, the chief operating officer owned 987,208 shares in the company, valued at $17,661,151.12. This represents a 1.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 423,705 shares of company stock valued at $7,369,527 in the last quarter. 4.27% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Pacer Advisors Inc. raised its position in shares of SentinelOne by 78.6% in the fourth quarter. Pacer Advisors Inc. now owns 31,653 shares of the company’s stock worth $475,000 after buying an additional 13,931 shares in the last quarter. Sunbelt Securities Inc. grew its position in SentinelOne by 50.3% during the fourth quarter. Sunbelt Securities Inc. now owns 23,615 shares of the company’s stock worth $354,000 after buying an additional 7,898 shares in the last quarter. Compound Planning Inc. bought a new position in SentinelOne in the 4th quarter worth about $167,000. Invesco Ltd. increased its stake in SentinelOne by 12.1% in the 4th quarter. Invesco Ltd. now owns 401,396 shares of the company’s stock worth $6,021,000 after acquiring an additional 43,241 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV raised its holdings in shares of SentinelOne by 97.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 113,021 shares of the company’s stock valued at $1,680,000 after acquiring an additional 55,798 shares in the last quarter. Institutional investors own 90.87% of the company’s stock.

Key Headlines Impacting SentinelOne

Here are the key news stories impacting SentinelOne this week:

• Positive Sentiment: SentinelOne reported fiscal Q2 adjusted earnings of $0.08 per share, ahead of the $0.07 consensus estimate and double the year-earlier result. Revenue rose 20.6% year over year to approximately $292 million, slightly exceeding some estimates. SentinelOne Q2 earnings and revenues surpass estimates
• Positive Sentiment: Management issued substantially stronger-than-expected profitability guidance: fiscal Q3 EPS of $0.08-$0.09 versus an analyst forecast for a loss of $0.14, and fiscal 2027 EPS of $0.30-$0.32 versus a projected loss of $0.68. Revenue guidance was broadly in line with consensus. SentinelOne earnings and guidance
• Positive Sentiment: The stock benefited from a cybersecurity-sector re-rating, with capital rotating into previously lagging companies such as SentinelOne and peer Zscaler. Cybersecurity re-rating reaches laggards
• Neutral Sentiment: SentinelOne and Tenable reported that attackers increasingly target technology ecosystems and edge-device vendors, highlighting demand for broader cybersecurity protections but also the evolving threat environment. Attackers target edge-device ecosystems
• Negative Sentiment: Post-earnings selling reflected concerns that quarterly revenue of about $292 million was below some Wall Street estimates near $296 million. SentinelOne also posted an operating loss of roughly $91 million and a net loss of about $93 million, while reports characterized the outlook as mixed. Mixed guidance overshadows strong Q2 results

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Barclays raised their target price on SentinelOne from $16.00 to $22.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 20th. Oppenheimer upped their price target on SentinelOne from $21.00 to $27.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Jefferies Financial Group increased their price target on SentinelOne from $24.00 to $25.00 and gave the stock a “buy” rating in a research note on Monday. Raymond James Financial lowered SentinelOne from a “strong-buy” rating to a “market perform” rating and set a $18.00 price objective for the company. in a report on Friday, May 29th. Finally, Bank of America upgraded SentinelOne from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $16.00 to $20.00 in a research note on Friday, May 29th. Eighteen investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $21.07.

SentinelOne Company Profile

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.