Revenue Growth
Revenue grew 21% year over year to $277.0M in Q1 FY27, with management calling Q1 a solid start to the year and reiterating full‑year revenue guidance of $1.195–$1.205B (~20% YoY at the midpoint).
SentinelOne
· S
May 28th, 2026
Summary
- Earnings Call Date:
- 2026-05-28
- Change Since:
- -16.09%
- Next Earnings Date:
- 2026-08-27
Earnings Call Sentiment
PositiveThe call emphasized broad commercial momentum—accelerating ARR, record net new ARR, strong AI security adoption, expanding international mix, improved profitability and cash generation, and product/partner momentum. The negatives were largely operational/timing (8% workforce reduction, one‑time restructuring charge, some billing seasonality) and external macro uncertainties. Overall performance metrics and guidance upgrades on profitability indicate management confidence in balancing growth and margin expansion.
Company Guidance
SentinelOne reiterated full‑year FY27 revenue guidance of $1.195–$1.205 billion (~20% YoY at the midpoint) and Q2 revenue of $289–$291 million (~20% YoY at the midpoint), raised FY27 operating income to $115–$125 million (≈10% operating margin at the midpoint, ~650 bps improvement vs FY26) with Q2 operating income guided to $23–$25 million (≈8% margin at midpoint), expects full‑year non‑GAAP diluted EPS roughly $0.32–$0.38 (≈$0.35 midpoint) and Q2 EPS $0.06–$0.08, a non‑GAAP tax rate of ~17%, weighted average diluted shares of ~347M (Q2) and ~350M (FY), a one‑time Q2 restructuring charge of ≈$25M excluded from non‑GAAP results (targeting ≈$45M of annualized savings), and reiterated expectation of positive net new ARR growth for FY27 while citing $812M cash/investments and no debt.
ARR Acceleration and Record Net New ARR
Total ARR growth accelerated to 23% year over year. SentinelOne added $44M in net new ARR in Q1, a company record and a 55% increase YoY, marking the fourth consecutive quarter of positive net new ARR growth.
AI Security Traction
AI security ARR nearly doubled again in Q1 (management phrase), with Prompt Security highlighted as a differentiator and a source of standalone wins and competitive displacements.
Platform Mix & Cross‑Sell Momentum
For the first time, non‑endpoint solutions approached ~50% of total ARR. ARR per customer hit a new company record, and the $100k+ ARR cohort grew 17% YoY, indicating strong upmarket and multi‑product adoption.
International Expansion
International revenue grew 25% YoY and represented 39% of total revenue, demonstrating expanding global demand.
Profitability Improvement
Operating margin improved to 4% in Q1, roughly a 550 basis point improvement YoY. Management raised FY27 operating income guidance to $115–$125M (~10% operating margin at midpoint, ~650 bps YoY improvement).
Earnings and Cash Profile
Non‑GAAP EPS improved ~83% YoY to $0.40 in Q1. Trailing‑12‑month adjusted free cash flow margin was 6.5%, up ~44 basis points YoY. Balance sheet: $812M cash, cash equivalents and investments, and no debt.
Contract Visibility and Bookings Signals
Remaining performance obligations (RPO) grew ~30% YoY to a record $1.5B. SentinelOne Flex (FLIX) crossed $200M in TCV within three quarters, and management cited multiple large 7‑ and 8‑figure deals and multi‑year commitments.
Product & Partner Momentum
Key product milestones and launches: Singularity AI red teaming, Purple AI auto investigations (general availability), Wayfinder Frontier AI services, and expanded integrations/partnerships (LevelBlue MSSP expansion, Google Cloud Partner of the Year, AWS Security Hub integration). Several named customer wins included a U.S. state government AI security deal, a luxury brand replacing Splunk, and a large private company expanding cloud runtime security.
Operator
Hello. And welcome to the SentinelOne Q1 f y 27 Earnings Conference Call. We ask that you please hold all questions until the completion of the formal remarks. At which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect your call. I will now turn the call over to Saad Nazir. Vice President of Investor Relations.
Douglas G. Clark
Good afternoon, everyone, and welcome to SentinelOne's earnings call for the first quarter of fiscal year 27. Which ended April 30, 2026. With us today are Tomer Weingarten, CEO and Sonalee Elizabeth Parekh, CFO. Our press release and an earnings presentation were issued earlier today and are posted on the Investor Relations section of our website. This call and accompanying slides are being broadcast live via webcast and a replay will be available on our website shortly after the call. Before we begin, I would like to remind you that during today's call, we will be making forward looking statements about financial performance, and future events. Including our guidance for the fiscal second quarter and full fiscal year 27. As well as long term financial targets.
We caution you that such statements reflect our best judgment based on factors currently known to us and that our actual results or events could differ materially. Please refer to the documents we file from time to time with the SEC, in particular, our quarterly reports on Form 10 Q and annual report on Form 10 k. These documents contain and identify important risk factors and oth...
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