SentinelOne (NYSE:S) Issues Earnings Results

SentinelOne (NYSE:S) issued its quarterly earnings results on Thursday. The company reported $0.08 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.01, FiscalAI reports. The business had revenue of $291.98 million for the quarter, compared to the consensus estimate of $290.24 million. SentinelOne had a negative net margin of 30.39% and a negative return on equity of 15.35%. The company’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.22) earnings per share. 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 Price Performance

SentinelOne stock opened at $22.79 on Friday. SentinelOne has a 1 year low of $11.81 and a 1 year high of $23.95. The firm’s 50 day moving average price is $19.20 and its 200-day moving average price is $16.25. The stock has a market cap of $7.81 billion, a P/E ratio of -23.74 and a beta of 0.79.

Wall Street Analyst Weigh In

S has been the topic of several recent analyst reports. Oppenheimer raised their price objective on shares of SentinelOne from $21.00 to $27.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. UBS Group upped their target price on shares of SentinelOne from $15.00 to $16.00 and gave the stock a “neutral” rating in a report on Friday, May 29th. TD Cowen increased their price target on SentinelOne from $22.00 to $25.00 and gave the stock a “buy” rating in a research note on Monday, August 17th. Barclays set a $23.00 price target on SentinelOne in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft set a $24.00 price target on SentinelOne in a report on Monday, August 17th. Nineteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, SentinelOne currently has an average rating of “Moderate Buy” and a consensus target price of $21.13.

Insider Activity

In related news, insider Keenan Michael Conder sold 26,374 shares of the firm’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $20.08, for a total transaction of $529,589.92. Following the completion of the transaction, the insider directly owned 956,358 shares of the company’s stock, valued at approximately $19,203,668.64. This trade represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 SentinelOne stock in a transaction on Monday, July 6th. The shares were 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 approximately $17,661,151.12. This represents a 1.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Company insiders own 4.27% of the company’s stock.

Hedge Funds Weigh In On SentinelOne

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its stake in SentinelOne by 93.4% in the 4th quarter. AQR Capital Management LLC now owns 8,212,127 shares of the company’s stock worth $123,182,000 after acquiring an additional 3,965,519 shares during the last quarter. First Trust Advisors LP grew its holdings in shares of SentinelOne by 38.1% in the fourth quarter. First Trust Advisors LP now owns 13,146,797 shares of the company’s stock valued at $197,202,000 after purchasing an additional 3,624,707 shares in the last quarter. Cooper Creek Partners Management LLC purchased a new position in shares of SentinelOne in the third quarter valued at $41,416,000. Marshall Wace LLP increased its position in SentinelOne by 526.4% in the third quarter. Marshall Wace LLP now owns 2,269,748 shares of the company’s stock worth $39,970,000 after purchasing an additional 1,907,376 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in SentinelOne by 76.6% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,649,092 shares of the company’s stock worth $48,417,000 after purchasing an additional 1,149,309 shares during the last quarter. 90.87% of the stock is owned by institutional investors.

SentinelOne News Summary

Here are the key news stories impacting SentinelOne this week:

• Positive Sentiment: Quarterly results exceeded expectations. SentinelOne reported fiscal second-quarter revenue of approximately $292 million, up 20.6% year over year and slightly above consensus, while adjusted EPS of $0.08 topped the $0.07 estimate. The results indicate continued demand for the company’s endpoint and cloud security products. SentinelOne Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Profitability outlook was materially upgraded. SentinelOne now expects fiscal 2027 adjusted EPS of $0.30-$0.32, compared with a prior consensus estimate calling for a loss, and third-quarter EPS of $0.08-$0.09. Full-year revenue guidance of approximately $1.202-$1.207 billion is broadly in line with expectations, while the company is targeting $124-$128 million in operating income. SentinelOne FY 2027 Forecast
• Positive Sentiment: Sector momentum provided an additional catalyst. A broader cybersecurity-sector re-rating lifted several security software stocks, as investors rotated into companies previously viewed as laggards. This helped amplify the positive reaction to SentinelOne’s earnings and outlook. Cybersecurity Re-Rating
• Neutral Sentiment: SentinelOne’s new cyber-risk research highlights how attackers are increasingly targeting vendor ecosystems and edge-device environments. The findings support the long-term need for cybersecurity spending but do not immediately change the company’s financial outlook. SentinelOne Cyber Risk Research
• Negative Sentiment: Losses and execution risks remain. Despite the adjusted-profit guidance, SentinelOne continues to report negative GAAP margins and substantial operating losses. Some investors also viewed revenue guidance as merely in line rather than a significant upside surprise, explaining the initial post-earnings weakness. Mixed Guidance Overshadows Results

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.