[Second Quarter Fiscal Year 2026 Financial Results Overview](index=1&type=section&id=Second%20Quarter%20Fiscal%20Year%202026%20Financial%20Results%20Overview) SentinelOne reported strong Q2 FY26 results with significant revenue and ARR growth, achieving non-GAAP operating profitability and improved GAAP margins [Highlights of Q2 FY26 Performance](index=1&type=section&id=Highlights%20of%20Q2%20FY26%20Performance) SentinelOne demonstrated robust performance in Q2 FY26, with revenue growing 22% to $242.2 million and ARR increasing 24% to $1.0 billion, achieving non-GAAP operating profitability and improved GAAP margins Key Financial Metrics for Q2 FY26 | Metric | Amount/Ratio | | :-------------------------------- | :---------- | | **Total Revenue** | $242.2 million (up 22% year-over-year) | | **Annualized Recurring Revenue (ARR)** | $1.0 billion (up 24% year-over-year) | | **Customers with ARR ≥ $100,000** | 1,513 (up 23% year-over-year) | | **GAAP Gross Margin** | 75% | | **Non-GAAP Gross Margin** | 79% | | **GAAP Operating Margin** | (33)% | | **Non-GAAP Operating Margin** | 2% | | **GAAP Net Loss Margin** | (30)% | | **Non-GAAP Net Income Margin** | 5% | | **Operating Cash Flow Margin** | 0% | | **Free Cash Flow Margin** | (3)% | | **Cash, Cash Equivalents, and Investments** | $1.2 billion | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Tomer Weingarten highlighted ARR surpassing $1.0 billion and record net new ARR, driven by the AI-powered platform's broad adoption across AI, data, cloud, and endpoint domains, while CFO Barbara Larson noted top-tier growth, margin expansion, and reaffirmed full-year profitability and free cash flow commitments - ARR surpassed **$1.0 billion**, achieving record net new ARR, driven by platform adoption across AI, data, cloud, and endpoint domains[3](index=3&type=chunk) - The AI-powered platform demonstrated strong momentum, enhancing competitive positioning and product differentiation[3](index=3&type=chunk) - Achieved top-tier growth and margin expansion, underscoring business model scalability and operating leverage[3](index=3&type=chunk) - Full-year revenue outlook was raised, and commitments for full-year operating profitability and free cash flow were reaffirmed[3](index=3&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) The company provides Q3 FY26 and full-year guidance, projecting continued revenue growth and sustained non-GAAP operating profitability [Q3 FY26 and Full FY2026 Guidance](index=2&type=section&id=Q3%20FY26%20and%20Full%20FY2026%20Guidance) SentinelOne provided financial guidance for Q3 FY26 and the full fiscal year 2026, anticipating sustained revenue growth and maintaining non-GAAP operating profitability Q3 FY26 and Full FY2026 Financial Guidance | Metric | Q3 FY26 Guidance | Full FY2026 Guidance | | :-------------------- | :------------------- | :------------------- | | **Revenue** | $256 million | $998 - 1,002 million | | **Non-GAAP Gross Margin** | 78.5% | 78.5 - 79% | | **Non-GAAP Operating Margin** | 4% | 3% | [Non-GAAP Financial Measures and Key Business Metrics](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Business%20Metrics) This section explains the company's use of non-GAAP financial measures and key business metrics like ARR to assess performance and guide strategic decisions [Explanation of Non-GAAP Financial Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures to evaluate operational performance, ensure consistency and comparability with past financial results, and aid internal planning, providing a clearer view of core operations by excluding certain non-cash or non-recurring items - Non-GAAP measures are utilized for evaluating ongoing operations, internal planning, and forecasting, offering consistency and comparability with historical performance[15](index=15&type=chunk) - Non-GAAP information is supplementary and should not be considered in isolation from GAAP financial information[15](index=15&type=chunk) [Specific Non-GAAP Adjustments](index=3&type=section&id=Specific%20Non-GAAP%20Adjustments) This section details specific items excluded when adjusting from GAAP to non-GAAP metrics, including stock-based compensation, employer payroll taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related compensation, restructuring charges, strategic investment gains/losses, and income tax provision, with adjustments for diluted shares - Stock-based compensation expenses are excluded due to their non-cash nature and volatility, providing a clearer view of core performance[18](index=18&type=chunk)[19](index=19&type=chunk) - Employer payroll taxes related to employee stock transactions are excluded due to their volatility influenced by market forces[20](index=20&type=chunk) - Amortization of acquired intangible assets is excluded for a more accurate assessment of ongoing operations[21](index=21&type=chunk) - Acquisition-related compensation costs are excluded as they are part of specific acquisition negotiations and not core operating performance[22](index=22&type=chunk) - Restructuring charges are excluded as they are discrete events and not part of core operating activities[23](index=23&type=chunk) - Strategic investment gains and losses are excluded as they are discrete events and not part of core operating activities[24](index=24&type=chunk) - A **$136 million** income tax expense and **$4.7 million** tax benefit related to negotiations with Israeli tax authorities are excluded as discrete, non-recurring items[25](index=25&type=chunk) - Dilutive common stock equivalents are included when non-GAAP net income exists, using the treasury stock method for calculating non-GAAP diluted net income per share[26](index=26&type=chunk) [Non-GAAP Definitions](index=5&type=section&id=Non-GAAP%20Definitions) This section defines various non-GAAP financial metrics, including non-GAAP cost of revenue, gross profit, gross margin, operating income/loss, operating margin, net income, and net income per share, all adjusted for the aforementioned exclusions, with free cash flow specifically defined as cash flow from operating activities less purchases of property and equipment and capitalized internal-use software costs - Non-GAAP cost of revenue, gross profit, gross margin, operating income (loss), operating margin, net income, and net income per share are all defined as their respective GAAP measures less specific expenses[27](index=27&type=chunk) - Free cash flow is defined as cash flow from operating activities less purchases of property and equipment and capitalized internal-use software costs, serving as a liquidity metric[28](index=28&type=chunk) [Key Business Metrics Definitions](index=5&type=section&id=Key%20Business%20Metrics%20Definitions) SentinelOne uses Annualized Recurring Revenue (ARR) and the number of customers with ARR of $100,000 or more as key metrics to evaluate business performance, identify trends, and make strategic decisions - The company monitors key metrics to assess business performance, identify trends, formulate business plans, and make strategic decisions[29](index=29&type=chunk) [Annualized Recurring Revenue (ARR)](index=5&type=section&id=Annualized%20Recurring%20Revenue%20(ARR)) ARR is a key operational metric measuring the annualized revenue run-rate from subscriptions and consumption/usage-based agreements at the end of the reporting period, assuming contracts renew on existing terms, reflecting the company's ability to acquire new customers and maintain and expand existing relationships - ARR measures the annualized revenue run-rate from subscriptions and consumption/usage-based agreements, reflecting the ability to acquire and expand customer relationships[30](index=30&type=chunk) - ARR is not a forecast of future revenue[30](index=30&type=chunk) [Customers with ARR of $100,000 or More](index=5&type=section&id=Customers%20with%20ARR%20of%20%24100%2C000%20or%20More) This metric reflects market penetration and platform strategic demand, defining customers as entities with active platform subscriptions, where managed service providers are counted as single customers, excluding resellers or distribution channel partners - Growth in customers with ARR of **$100,000** or more indicates market penetration and demand for the platform strategy[31](index=31&type=chunk) - Customers are defined as entities with active subscriptions, with managed service providers counted as single customers, excluding resellers or distributors[31](index=31&type=chunk)[32](index=32&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements present the company's balance sheets, statements of operations, and cash flows for the specified periods [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet provides a snapshot of the company's financial position as of July 31, 2025, and January 31, 2025, detailing assets, liabilities, and stockholders' equity, showing a slight decrease in total assets and an increase in total liabilities primarily due to a significant rise in other liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | July 31, 2025 | January 31, 2025 | Change | | :-------------------------------- | :------------- | :------------- | :----- | | **Total Current Assets** | $1,092,698 | $1,069,722 | +$22,976 | | **Total Assets** | $2,350,484 | $2,406,625 | -$56,141 | | **Total Current Liabilities** | $596,776 | $613,553 | -$16,777 | | **Other Liabilities** | $156,336 | $21,808 | +$134,528 | | **Total Liabilities** | $842,698 | $737,378 | +$105,320 | | **Total Stockholders' Equity** | $1,507,786 | $1,669,247 | -$161,461 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three and six months ended July 31, 2025, SentinelOne experienced revenue growth, but net loss also increased, primarily due to a significant rise in income tax provision during the six-month period Condensed Consolidated Statements of Operations Highlights (Three Months Ended July 31, in thousands) | Metric | 2025 | 2024 | Y-o-Y Change | Y-o-Y Growth Rate | | :-------------------- | :----- | :----- | :------- | :--------- | | **Revenue** | $242,183 | $198,937 | +$43,246 | 21.7% | | **Gross Profit** | $181,709 | $148,238 | +$33,471 | 22.6% | | **Operating Loss** | $(80,618) | $(79,381) | -$1,237 | -1.6% | | **Net Loss** | $(72,019) | $(69,184) | -$2,835 | -4.1% | | **Net Loss Per Share** | $(0.22) | $(0.22) | $0.00 | 0.0% | Condensed Consolidated Statements of Operations Highlights (Six Months Ended July 31, in thousands) | Metric | 2025 | 2024 | Y-o-Y Change | Y-o-Y Growth Rate | | :-------------------- | :----- | :----- | :------- | :--------- | | **Revenue** | $471,212 | $385,292 | +$85,920 | 22.3% | | **Gross Profit** | $354,206 | $284,456 | +$69,750 | 24.5% | | **Operating Loss** | $(168,101) | $(159,981) | -$8,120 | -5.1% | | **Income Tax Provision** | $136,762 | $3,711 | +$133,051 | 3585.3% | | **Net Loss** | $(280,212) | $(139,289) | -$140,923 | -101.2% | | **Net Loss Per Share** | $(0.85) | $(0.45) | -$0.40 | -88.9% | [Condensed Consolidated Cash Flow Statements](index=9&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statements) For the six months ended July 31, 2025, net cash from operating activities increased, and investing activities shifted from net cash usage to net cash inflow, primarily due to changes in investment purchases and sales proceeds, while financing activities resulted in net cash outflow mainly due to common stock repurchases Condensed Consolidated Cash Flow Statements Highlights (Six Months Ended July 31, in thousands) | Metric | 2025 | 2024 | Change | | :------------------------------------ | :----- | :----- | :----- | | **Net Cash From Operating Activities** | $51,231 | $44,303 | +$6,928 | | **Net Cash From Investing Activities** | $65,642 | $(115,621) | +$181,263 | | **Net Cash From Financing Activities** | $(28,399) | $21,592 | -$49,991 | | **Net Change in Cash, Cash Equivalents, and Restricted Cash** | $88,474 | $(49,726) | +$138,200 | | **Cash, Cash Equivalents, and Restricted Cash at End of Period** | $281,776 | $272,360 | +$9,416 | [Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited)](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information%20(Unaudited)) This section provides detailed reconciliations between GAAP and non-GAAP financial measures, highlighting adjustments for various non-cash and non-recurring items [Cost of Revenue and Gross Profit/Margin Reconciliation](index=10&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Profit%2FMargin%20Reconciliation) The reconciliation table shows adjustments made to GAAP cost of revenue and gross profit/margin to arrive at non-GAAP figures, primarily by excluding stock-based compensation, employer payroll taxes, amortization of acquired intangible assets, and acquisition-related compensation, with Q2 FY26 non-GAAP gross margin at 79%, a slight decrease from 80% in Q2 FY25 Non-GAAP Gross Margin (Three Months Ended July 31) | Metric | 2025 | 2024 | | :-------------------- | :--- | :--- | | **GAAP Gross Margin** | 75% | 75% | | **Non-GAAP Gross Margin** | 79% | 80% | [Operating Expenses Reconciliation](index=10&type=section&id=Operating%20Expenses%20Reconciliation) This section details the reconciliation of GAAP operating expenses (research and development, sales and marketing, general and administrative, restructuring) to their non-GAAP counterparts, by excluding stock-based compensation, employer payroll taxes, amortization of acquired intangible assets, and acquisition-related compensation Non-GAAP Operating Expenses (Three Months Ended July 31, in thousands) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | **Non-GAAP Research and Development Expenses** | $53,924 | $41,804 | | **Non-GAAP Sales and Marketing Expenses** | $103,793 | $98,083 | | **Non-GAAP General and Administrative Expenses** | $28,414 | $24,640 | | **Non-GAAP Restructuring Expenses** | $0 | $0 | [Operating Income (Loss) and Margin Reconciliation](index=12&type=section&id=Operating%20Income%20(Loss)%20and%20Margin%20Reconciliation) Non-GAAP operating income for Q2 FY26 was $5.376 million, a significant improvement from a non-GAAP operating loss of $6.359 million in Q2 FY25, achieving a positive non-GAAP operating margin of 2% Non-GAAP Operating Income (Loss) (Three Months Ended July 31, in thousands) | Metric | 2025 | 2024 | Change | | :------------------------ | :----- | :----- | :----- | | **GAAP Operating Loss** | $(80,618) | $(79,381) | -$1,237 | | **Non-GAAP Operating Income (Loss)** | $5,376 | $(6,359) | +$11,735 | Non-GAAP Operating Margin (Three Months Ended July 31) | Metric | 2025 | 2024 | Change | | :-------------------- | :--- | :--- | :--- | | **GAAP Operating Margin** | (33)% | (40)% | +7 pp | | **Non-GAAP Operating Margin** | 2% | (3)% | +5 pp | [Net Income (Loss) and Margin Reconciliation](index=12&type=section&id=Net%20Income%20(Loss)%20and%20Margin%20Reconciliation) Non-GAAP net income for Q2 FY26 was $13.18 million, a substantial increase from $3.492 million in Q2 FY25, achieving a non-GAAP net income margin of 5% Non-GAAP Net Income (Three Months Ended July 31, in thousands) | Metric | 2025 | 2024 | Change | | :-------------------- | :----- | :----- | :----- | | **GAAP Net Loss** | $(72,019) | $(69,184) | -$2,835 | | **Non-GAAP Net Income** | $13,180 | $3,492 | +$9,688 | Non-GAAP Net Income Margin (Three Months Ended July 31) | Metric | 2025 | 2024 | Change | | :-------------------- | :--- | :--- | :--- | | **GAAP Net Loss Margin** | (30)% | (35)% | +5 pp | | **Non-GAAP Net Income Margin** | 5% | 2% | +3 pp | [Diluted EPS Reconciliation](index=14&type=section&id=Diluted%20EPS%20Reconciliation) Non-GAAP diluted EPS for Q2 FY26 improved to $0.04 from $0.01 in Q2 FY25, reflecting the company's enhanced non-GAAP profitability Non-GAAP Diluted EPS (Three Months Ended July 31) | Metric | 2025 | 2024 | Change | | :-------------------------- | :--- | :--- | :--- | | **GAAP Net Loss Per Share** | $(0.22) | $(0.22) | $0.00 | | **Non-GAAP Net Income Per Share** | $0.04 | $0.01 | +$0.03 | [Selected Cash Flow Information and Free Cash Flow Reconciliation](index=15&type=section&id=Selected%20Cash%20Flow%20Information%20and%20Free%20Cash%20Flow%20Reconciliation) For the three months ended July 31, 2025, free cash flow was negative $7.148 million, a slight increase in outflow year-over-year, while for the six months ended July 31, 2025, free cash flow was positive $38.296 million, a significant increase from $28.32 million in the prior year Free Cash Flow (Three Months Ended July 31, in thousands) | Metric | 2025 | 2024 | Change | | :-------------------- | :----- | :----- | :----- | | **Free Cash Flow** | $(7,148) | $(5,436) | -$1,712 | | **Free Cash Flow Margin** | (3)% | (3)% | 0 pp | Free Cash Flow (Six Months Ended July 31, in thousands) | Metric | 2025 | 2024 | Change | | :-------------------- | :----- | :----- | :----- | | **Free Cash Flow** | $38,296 | $28,320 | +$9,976 | | **Free Cash Flow Margin** | 8% | 7% | +1 pp | [Corporate and Legal Information](index=2&type=section&id=Corporate%20and%20Legal%20Information) This section provides details on the upcoming earnings webcast and standard disclaimers regarding forward-looking statements [Webcast Information](index=2&type=section&id=Webcast%20Information) SentinelOne will host a live audio webcast on August 28, 2025, to discuss Q2 FY26 earnings and outlook, with details and recordings available on the investor relations website - A live audio webcast for Q2 FY26 earnings and outlook will be held on **August 28, 2025, at 1:30 PM PT (4:30 PM ET)**[8](index=8&type=chunk) - The webcast and its recording will be available on investors.sentinelone.com[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, emphasizing risks and uncertainties that could cause actual results to differ materially from projections, advising investors to exercise caution and not to place undue reliance on these statements - The press release contains forward-looking statements subject to risks and uncertainties, including future growth, financial performance, and market trends[10](index=10&type=chunk) - Numerous factors, such as limited operating history, intense competition, and macroeconomic conditions, could cause actual results to differ materially from statements[11](index=11&type=chunk)[12](index=12&type=chunk) - Investors should not place undue reliance on these statements, and the company undertakes no obligation to update forward-looking statements unless legally required[14](index=14&type=chunk)

Company Overview - SentinelOne is set to report its Q2 2026 earnings on August 28, 2025, with expected revenues of $242 million, reflecting a 22% year-over-year growth, and a reduction in net losses to approximately $0.19 per share [2] - The company has a current market capitalization of $5.6 billion and reported revenues of $864 million over the last twelve months, alongside operational losses of $331 million and a net income loss of $427 million [3] Product and Market Position - SentinelOne's product portfolio is centered around its Singularity platform, which leverages AI-driven automation for real-time cyber threat management across endpoints and cloud workloads, distinguishing it from traditional vendors [2] - The company has seen a 24% year-over-year growth in Annualized Recurring Revenue (ARR), totaling $948.1 million, indicating strong customer retention and growth within existing accounts [2] Customer Metrics - The number of customers with an ARR of $100,000 or more increased by 22% to 1,459, showcasing stronger penetration into larger enterprises [2] Historical Performance Insights - Over the past five years, SentinelOne has recorded 15 earnings data points, with only 4 positive one-day returns, resulting in a 27% positive return rate, which drops to 18% when considering the last three years [8] - The median of the 4 positive returns stands at 8.5%, while the median of the 11 negative returns is -5.9% [8]

Core Insights - Okta and SentinelOne are significant players in the enterprise security software market, with Okta focusing on cloud-based identity solutions and SentinelOne on endpoint security and threat detection [1][2] Industry Overview - Gartner projects enterprise spending on cybersecurity software and network security to grow by 14% in 2025, reaching $118.5 billion, driven by demand for Generative AI and cloud adoption [2] - IDC anticipates global cybersecurity spending to increase by 12.2% year-over-year in 2025, with security software spending expected to grow by 14.4% year-over-year [2] Okta's Performance - Okta's innovative portfolio includes AI-powered capabilities and a strong demand for new products, leading to a customer base of approximately 20,000 as of Q1 FY26 [4][6] - The company has over 7,000 integrations with various applications and IT infrastructure providers [4] - Subscription revenue for Q2 FY26 is estimated at $697 million, reflecting a 10.3% growth from the previous year [7] - Okta's shares have appreciated by 16.5% year-to-date, outperforming SentinelOne [13] SentinelOne's Performance - SentinelOne's Singularity platform offers comprehensive security solutions, with significant growth driven by its AI and automation capabilities [8] - The Purple AI component saw triple-digit quarterly bookings growth year-over-year in Q1 FY26, with an attach rate exceeding 25% [9] - The company is in the process of acquiring Prompt Security to enhance its AI-native platform [10] - SentinelOne's shares have declined by 23.9% year-to-date [13] Valuation and Market Position - Okta's forward 12-month Price/Sales ratio is 5.22X, while SentinelOne's is lower at 4.99X [17] - Both companies are considered overvalued, with Okta holding a Zacks Rank 3 (Hold) and SentinelOne a Zacks Rank 4 (Sell) [16][21]

Core Insights - SentinelOne (S) shares have decreased by 14% over the past month, underperforming the Zacks Computer & Technology sector's 3% return and the Zacks Security industry's decline of 12.1%, primarily due to challenging macroeconomic conditions affecting sales cycles and net new ARR growth [1][10][21] Company Performance - Despite recent stock performance, SentinelOne's long-term growth trajectory is supported by its innovative Singularity platform, which offers comprehensive AI-native security solutions across various levels [3][4] - The first quarter of fiscal 2026 saw significant growth in the adoption of AI-powered cybersecurity solutions, with Purple AI achieving triple-digit quarterly bookings growth year-over-year and an attach rate exceeding 25% for subscriptions sold [5][10] - SentinelOne's annualized recurring revenues (ARR) increased by 24% year-over-year to $948.1 million, with large enterprise customers generating over $100K in ARR rising by 22% year-over-year to 1,459 [10][13] Product Innovations - The launch of Purple AI Athena, the first true end-to-end Agentic AI platform for cybersecurity, and the general availability of Singularity Hyperautomation are key innovations driving growth [6][10] - Recent acquisitions, such as the agreement to acquire Prompt Security, are expanding the capabilities of the Singularity platform to secure generative and agentic AI use in enterprises [7] Strategic Partnerships - SentinelOne's expanding partner base, including notable companies like Amazon, CyberArk, Mimecast, and Lenovo, is enhancing platform functionality and attracting more customers [8][12] Financial Outlook - The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is 3 cents per share, indicating a 200% year-over-year increase, with expected revenues of approximately $242 million, reflecting 21.7% year-over-year growth [14][15] Competitive Landscape - The company faces stiff competition in the cybersecurity industry from established players like CrowdStrike and Microsoft, which may impact its market position [16][18]

Group 1 - SentinelOne's stock closed at $17.01, reflecting a +1.25% change from the previous day, outperforming the S&P 500 which saw a loss of 0.01% [1] - Over the past month, SentinelOne's shares have decreased by 6.72%, while the Computer and Technology sector gained 4.93% and the S&P 500 increased by 3.47% [1] Group 2 - SentinelOne is set to announce its earnings on August 28, 2025, with an expected EPS of $0.03, representing a 200% increase from the same quarter last year [2] - The consensus estimate for revenue is $242.02 million, indicating a 21.65% increase from the previous year [2] Group 3 - For the annual period, the Zacks Consensus Estimates predict earnings of $0.20 per share and revenue of $996.62 million, reflecting increases of +300% and +21.32% respectively from the last year [3] - Adjustments to analyst estimates for SentinelOne are crucial as they indicate changing business trends and analysts' confidence in performance [3] Group 4 - The Zacks Rank system, which evaluates stocks based on estimate changes, currently ranks SentinelOne at 4 (Sell), indicating a less favorable outlook [5] - The Zacks Rank has a historical average annual return of +25% for stocks rated 1 (Strong Buy) since 1988 [5] Group 5 - SentinelOne has a Forward P/E ratio of 84.28, which is higher than the industry average Forward P/E of 62.84 [6] - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 179, placing it in the bottom 28% of over 250 industries [6]

Core Insights - SentinelOne's Singularity platform is an AI-native solution providing multi-level security, contributing to a 23% year-over-year revenue increase to $229 million in Q1 fiscal 2026 [1][9] - The platform's functionality is enhanced by components like Purple AI, which saw triple-digit growth in quarterly bookings, with an attach rate exceeding 25% [2][9] - The launch of Purple AI Athena marks a significant innovation in cybersecurity, and the availability of Singularity products in AWS Marketplace facilitates faster deployment of AI-powered security solutions [3] Financial Performance - Annualized recurring revenue (ARR) rose 24% year-over-year to $948.1 million in Q1 fiscal 2026, with large enterprise customers generating over $100K in ARR increasing by 22% to 1,459 [4][9] - The consensus estimate for Q2 fiscal 2026 earnings is 3 cents per share, indicating a 200% year-over-year increase, while the fiscal 2026 earnings estimate is 20 cents per share, suggesting a 21.32% growth [10] Competitive Landscape - SentinelOne faces significant competition from established players like Microsoft and CrowdStrike, which are enhancing their cybersecurity offerings [5][6] - Microsoft's recent addition of a data lake to its Microsoft Sentinel platform strengthens its position in the market [5] - CrowdStrike is capitalizing on the rising demand for cybersecurity solutions, particularly in the context of increased data breaches and the hybrid working trend [6] Stock Performance - SentinelOne's stock has declined by 24.3% year-to-date, underperforming the broader Zacks Computer & Technology sector and the Zacks Security industry [7]

Company Performance - SentinelOne closed at $15.81, reflecting a -1.37% change from the previous day, which was less than the S&P 500's daily loss of 0.25% [1] - Prior to the latest trading session, shares had decreased by 7.29%, underperforming the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 2.71% [1] Upcoming Earnings Report - The company is set to release its earnings on August 28, 2025, with projected EPS of $0.03, indicating a 200.00% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $242.02 million, representing a 21.65% increase from the same period last year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $0.20 per share and revenue of $996.62 million, reflecting changes of +300% and +21.32% respectively compared to the previous year [3] - Recent adjustments to analyst estimates suggest evolving short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3] Valuation Metrics - SentinelOne is currently trading at a Forward P/E ratio of 80.42, which is a premium compared to the industry average Forward P/E of 60.68 [6] - The Security industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 155, placing it in the bottom 38% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [5] - Currently, SentinelOne holds a Zacks Rank of 4 (Sell), with the Consensus EPS estimate remaining unchanged over the last 30 days [5]

Core Insights - SentinelOne's recent stock pullback and acquisition rumors involving Palo Alto Networks present a unique investment opportunity [1] Company Analysis - Shares of SentinelOne have decreased approximately since the last coverage, indicating potential volatility [1] - The company is recognized for its strong technology moat and first-mover advantage, which could drive future growth [1] - Insider ownership and smart capital allocation are highlighted as key factors in the company's management strategy [1] Market Positioning - SentinelOne benefits from network effects that can lead to exponential growth in high-growth industries [1] - The company is positioned in a competitive landscape with sustainable revenue growth and efficient cash flow [1] Financial Health - A strong balance sheet and long-term survival runway are essential for the company's financial health [1] - The focus on avoiding excessive dilution and financial weakness is critical for maintaining investor confidence [1] Valuation Metrics - Revenue multiples compared to peers and DCF modeling are used to assess the company's valuation [1] - Institutional backing and market sentiment analysis play a significant role in understanding the investment landscape [1] Portfolio Strategy - The investment strategy includes core positions (50-70%) in stable plays, growth bets (20-40%) in high-risk opportunities, and speculative investments (5-10%) in potential disruptors [1]

Group 1 - SentinelOne has underperformed compared to its software peers in a growing market, despite being one of the fastest-growing companies in the tech sector [1] - The company has had to lower its full-year guidance, indicating challenges in maintaining growth rates [1] - The investment group led by Julian focuses on stocks with a high probability of delivering significant alpha relative to the S&P 500, emphasizing growth-oriented principles and strict valuation hurdles [1] Group 2 - Julian Lin, a financial analyst, seeks undervalued companies with long-term growth potential, prioritizing strong balance sheets and management teams [1]

Group 1 - The article discusses the potential for investors to capitalize on undervalued stocks that are mispriced by the market as of the end of July [1] - It suggests that joining a specific investment group, Out Fox The Street, may provide insights on positioning in these stocks [1] Group 2 - There is a mention of a beneficial long position in the shares of a specific company, indicating a positive outlook on its stock performance [2] - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3]