Human cybersecurity managers are struggling to handle the high frequency of incidents in an increasingly digital world, but artificial intelligence (AI) can reduce alert fatigue to ensure fewer threats slip through the cracks in even the most complex organizations. SentinelOne (S 1.52%) developed a holistic cybersecurity platform called Singularity, which protects cloud networks, employee identities, and endpoints, with AI-powered automation at its core.SentinelOne stock is down 77% from its all-time high, ...

2 Q1 FY2026 Earnings Presentation May 28, 2025 Safe Harbor This presentation includes express and implied "forward-looking statements", including forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "pred ...

SentinelOne, Inc. (S) reported first-quarter fiscal 2026 results, with adjusted earnings meeting the Zacks Consensus Estimate and total revenues marginally topping the same. On a year-over-year basis, the top and bottom lines grew.The quarterly performance reflects incremental benefits realized from the implementation of the innovation engine, resulting in the increased adoption across AI, Data, Cloud and Endpoint. Furthermore, the company’s continuous focus on ensuring operational discipline with the scala ...

SentinelOne (S) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this cybersecurity provider would post earnings of $0.01 per share when it actually produced earnings of $0.04, delivering a surprise of 300%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. SentinelOne, which b ...

SentinelOne (S) Q1 2026 Earnings Call May 28, 2025 04:30 PM ET Company Participants Doug Clark - Vice President, Investor RelationsTomer Weingarten - Co-Founder, Chairman, President & CEOBarbara Larson - CFOJoseph Gallo - Senior Vice PresidentBrad Zelnick - Managing DirectorSaket Kalia - Managing DirectorJohn DiFucci - Senior Managing DirectorBrian Essex - Executive DirectorTrevor Walsh - Director - Equity ResearchAdam Tindle - Managing DirectorShaul Eyal - Managing Director - Equity Research Conference Cal ...

Financial Data and Key Metrics Changes - The company reported revenue of $229 million for Q1 2026, representing a 23% year-over-year growth [25] - Total Annual Recurring Revenue (ARR) grew 24% to $948 million [26] - The gross margin maintained at 79%, with an operating margin improvement to negative 2% [28] - Free cash flow margin reached a record 20% for the quarter, with cash and investments increasing to $1.2 billion [35][36] Business Line Data and Key Metrics Changes - The data solutions segment surpassed $100 million in ARR during Q1 [9] - The attach rate for AI solutions exceeded 25% across subscriptions sold in the quarter, indicating strong customer adoption [8][85] - Customers with ARR of $100,000 or more grew 22% to 1,459 [27] Market Data and Key Metrics Changes - Revenue from international markets grew 27%, accounting for 38% of total quarterly revenue [26] - Remaining performance obligations increased by 33% to $1.2 billion, indicating strong future revenue visibility [27] Company Strategy and Development Direction - The company is focusing on a platform sales strategy rather than a product-centric approach, aiming to enhance customer engagement and adoption [21][72] - Recent innovations include the unified cloud security suite and advancements in AI capabilities, which are expected to drive future growth [8][20] - The company aims to simplify security through AI, positioning itself as a leader in the evolving cybersecurity landscape [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty impacted Q1 net new ARR, but trends improved in May, leading to expectations of better performance in Q2 [18][42] - The company remains confident in its growth trajectory, expecting revenue of approximately $242 million for Q2, reflecting a 22% growth [30] - Management emphasized the importance of operational discipline and efficiency to navigate market challenges while continuing to invest in innovation [32][81] Other Important Information - The company achieved FedRAMP high authorization for several products, enhancing its competitive position in the public sector [12][13] - A $200 million open-ended share repurchase authorization was announced, reflecting confidence in the company's long-term prospects [36] Q&A Session Summary Question: Can you discuss the incremental ARR in the quarter? - Management indicated that improved trends were observed in May and expects year-over-year net ARR growth in Q2 to improve relative to Q1, attributing Q1 challenges to slip deals rather than elevated churn [40][41] Question: What are the guidance assumptions for the year? - Management acknowledged that the guidance reflects underlying new business growth and noted improved trends in May, while also being cautious about potential external disruptions [45][46] Question: What impact did the macro environment have on existing versus new customers? - Management clarified that the macro dynamics were more pronounced with new logos, while existing customer upsell and cross-sell remained strong [97] Question: How is the company approaching hiring plans for fiscal 2026? - Management stated that hiring is primarily focused on R&D, with adjustments made based on market needs and growth areas [102] Question: What is the outlook for the federal side of the business? - Management expressed optimism about growth opportunities in the federal sector, despite longer sales cycles and evolving procurement processes [107]

Revenue Performance - Revenue for the three months ended April 30, 2025, was $229.0 million, representing a year-over-year growth of 23% from $186.4 million in the same period of 2024[102]. - Revenue for the three months ended April 30, 2025, was $229.0 million, a 23% increase from $186.4 million in the same period of 2024, driven by new customer sales and additional licenses to existing customers[134]. - Annualized recurring revenue (ARR) grew 24% year-over-year to $948.1 million as of April 30, 2025, driven by new customer additions and existing customer adoption of adjacent platform solutions[113]. - The number of customers with ARR of $100,000 or more increased by 22% year-over-year to 1,459 as of April 30, 2025, up from 1,193 in 2024[115]. - Revenue outside of the U.S. represented 38% of total revenue for the three months ended April 30, 2025, compared to 37% in the same period of 2024, indicating a strong global presence[101]. Operating Loss and Expenses - Non-GAAP operating loss for the three months ended April 30, 2025, was $3.9 million, an improvement from a loss of $11.1 million in the same period of 2024[110]. - The company reported a GAAP operating loss of $87.5 million for the three months ended April 30, 2025, compared to a loss of $80.6 million in 2024[111]. - The net loss for the three months ended April 30, 2025, was $208.2 million, compared to a net loss of $70.1 million in the same period of 2024[134]. - Research and development expenses increased by $13.9 million to $72.3 million, primarily due to a $9.8 million rise in personnel-related costs and a $1.6 million increase in cloud hosting expenses[138]. - Sales and marketing expenses rose by $18.1 million to $133.9 million, mainly due to a $15.9 million increase in personnel-related expenses[139]. - General and administrative expenses increased by $6.0 million to $48.7 million, driven by a $5.2 million rise in personnel-related costs and a $2.2 million increase in consulting expenses[140]. - Restructuring charges amounted to $5.2 million, reflecting costs associated with the restructuring plan executed in March 2025[141]. Cash Flow and Financing - Cash provided by operating activities for the three months ended April 30, 2025, was $52.3 million, compared to $42.0 million for the same period in 2024[150][156]. - Cash used in investing activities during the three months ended April 30, 2025, was $65.6 million, primarily due to $167.3 million in investment purchases[157]. - Cash provided by financing activities for the three months ended April 30, 2025, was $12.3 million, entirely from the exercise of employee stock options[159]. - The company has authorized a $200.0 million share repurchase program, with no shares repurchased as of May 28, 2025[149][150]. - The company holds cash, cash equivalents, and investments totaling $1.2 billion as of April 30, 2025, which is expected to support working capital for at least the next 12 months[146][169]. - The company may seek additional equity or debt financing in the future, depending on various factors including revenue growth and macroeconomic conditions[147]. Tax and Interest - The provision for income taxes surged to $133.5 million, primarily due to an accrual of $136.0 million for an unrecognized tax benefit related to the APA matter[143]. - The company recorded a tax expense of $136.0 million during the three months ended April 30, 2025, related to uncertain tax positions in the context of APA negotiations[145][163]. - Interest income, net increased by $0.2 million to $12.3 million, attributed to higher income from investments in marketable securities[142]. Market Conditions and Strategy - The company experienced a decline in usage and consumption patterns from certain larger enterprise customers due to macroeconomic conditions, leading to longer sales cycles and deal downsizing[103]. - The company intends to monitor global macroeconomic conditions closely and may take financial or operational actions in response to adverse impacts on its business[104]. - The company’s go-to-market strategy focuses on acquiring new customers and expanding usage among existing customers through a combination of direct sales and channel partnerships[100]. - The company’s distributed AI models provide protection even when devices are not connected to the cloud, enhancing the platform's effectiveness[96]. Future Expectations - The company expects research and development expenses to increase in absolute dollars while decreasing as a percentage of total revenue over time[123]. - As of April 30, 2025, the company reported an accumulated deficit of $1.8 billion and expects operating losses to continue for the foreseeable future[145]. - A hypothetical 100 basis point change in interest rates would result in an $8.4 million change in the fair market value of the company's investment portfolio[169]. - A hypothetical 10% adverse change in the U.S. dollar against other currencies would have increased operating loss by approximately $8.1 million for the three months ended April 30, 2025[170].

SentinelOne Announces First Quarter Fiscal Year 2026 Financial Results Revenue increased 23% year-over-year ARR up 24% year-over-year MOUNTAIN VIEW, Calif. – May 28, 2025 – SentinelOne, Inc. (NYSE: S) today announced financial results for the first quarter of fiscal year 2026 ended April 30, 2025. "Our top-tier growth and margin improvement reflect continued platform momentum and customer success," said Tomer Weingarten, CEO of SentinelOne. "Our innovation engine is fueling adoption across AI, Data, Cloud, ...

It's hard to find many stocks involved with artificial intelligence (AI) that haven't worked out, but SentinelOne (S -0.10%) is one. The upstart cybersecurity company went public in the summer of 2021. Today, the stock is down over 50% from its initial share price and over 70% from its all-time high. Are things as bad at SentinelOne as the stock's performance might have you believe? I dove deep into the business to find out. What I discovered could be a game-changer for your portfolio. It wouldn't surprise ...

Core Viewpoint - SentinelOne is positioned for stable growth in fiscal 2026, with expected revenue of $228 million for the first quarter, reflecting a 22% year-over-year increase, despite some near-term challenges related to the retirement of a legacy product [5][12][19]. Financial Performance - Fiscal 2025 ended strongly for SentinelOne, with Q4 revenue rising 29% year-over-year to $225.5 million, surpassing expectations [1][2]. - The company achieved a net new Annual Recurring Revenue (ARR) of $60 million, bringing total ARR to $920 million, a 27% increase year-over-year [2]. - Gross margin for Q4 was robust, and operating margin exceeded guidance by over 400 basis points due to effective cost management [2][13]. Earnings Estimates - The Zacks Consensus Estimate for Q1 fiscal 2026 EPS remains at 2 cents per share, with revenue expectations set at $228 million, indicating a 22.4% year-over-year growth [5][12]. - For fiscal 2026, revenue growth is projected at 22.7%, with a significant 280% year-over-year improvement in the bottom line anticipated [6][7]. Market Position and Strategy - SentinelOne is leveraging AI-driven solutions, with over 300 deals signed in the last quarter, indicating strong market traction [11][20]. - More than 40% of large enterprise customers are now utilizing three or more modules of the Singularity platform, showcasing effective cross-selling and customer engagement [11][20]. Valuation and Stock Performance - The company's stock has underperformed compared to industry peers, with a 2.8% decline over the past three months, while the broader industry saw an 8.3% increase [14][15]. - Currently, SentinelOne trades at a forward 12-month price-to-sales (P/S) ratio of 6.04X, slightly above the sector average of 6.12X, but below its three-year average [18]. Long-term Outlook - Despite short-term headwinds, the long-term investment case for SentinelOne remains strong, driven by sustained platform adoption, AI differentiation, and improving margins [21][22]. - The company is on track to exceed $1 billion in revenues and ARR this fiscal year, supported by innovation and operational discipline [21][22].