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Jul 31, 2025
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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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