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Jul 31, 2024
SentinelOne Q2 2026 Earnings Report
SentinelOne exceeded $1B in ARR and delivered solid Q2 results with improved margins.
Key Takeaways
SentinelOne reached a key milestone surpassing $1 billion in ARR and continued to show operating efficiency improvements, despite reporting a net loss. Strong customer growth and gross margin expansion underpinned performance.
ARR surpassed $1.0B for the first time, up 30% YoY.
Revenue reached $242.2M, up 38% YoY.
Non-GAAP gross margin expanded to 80%, showing improved efficiency.
Customer count with ARR over $100K grew 30% YoY to 1,133.
SentinelOne
SentinelOne
Forward Guidance
SentinelOne guided for continued revenue growth and improving margins in Q3 FY26, with expectations of stronger operating leverage and free cash flow.
Positive Outlook
- Q3 FY26 revenue expected between $250M and $251M
- Non-GAAP gross margin expected between 79.5% and 80.0%
- Non-GAAP operating margin guided to (6)% to (5)% for Q3
- Positive free cash flow expected in Q3 FY26
- Raised full-year ARR growth guidance to 31%-32%
Challenges Ahead
- Continued GAAP operating losses projected
- Customer acquisition costs remain elevated
- Competitive pressures in AI cybersecurity persist
- Gross margin may fluctuate with product mix
- Macroeconomic environment still poses demand risks