SentinelOne (NYSE: S) posts 21% Q1 growth, turns non-GAAP profit and unveils 8% job cuts
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
SentinelOne reported first-quarter fiscal 2027 results and launched a restructuring that will cut about 8% of its workforce. The company generated $276.7 million in revenue, up 21% year-over-year, and grew annualized recurring revenue to $1.163 billion, an increase of 23%.
Profitability improved meaningfully: GAAP net loss narrowed to $76.2 million with a (28)% margin, while non-GAAP operating margin reached 4% and non-GAAP net income was $12.3 million, or $0.04 per diluted share. Adjusted free cash flow was $61.4 million with a 22% margin.
The restructuring plan is intended to streamline operations and focus investment on AI, Data, Cloud, and Endpoint, with an estimated one-time charge of about $25 million, including roughly $15 million of cash costs. SentinelOne raised its non-GAAP operating income outlook, guiding fiscal 2027 revenue to $1.195–$1.205 billion and non-GAAP EPS to $0.32–$0.38.
Positive
- Strong top-line and ARR growth: Q1 revenue rose 21% year-over-year to $276.7 million, while annualized recurring revenue increased 23% to $1.163 billion, supported by 17% growth in customers with ARR of $100,000 or more.
- Clear profitability improvement and guidance raise: Non-GAAP operating margin reached 4% versus (2)% a year earlier, non-GAAP net income was $12.3 million, and the company raised fiscal 2027 guidance for revenue to $1.195–$1.205 billion and non-GAAP operating income to $115–$125 million.
- Healthy cash position and cash generation: Cash, cash equivalents, and investments totaled $812 million as of April 30, 2026, and adjusted free cash flow was $61.4 million in Q1, with a 22% adjusted free cash flow margin.
Negative
- Headcount reduction and restructuring costs: The restructuring plan includes eliminating about 8% of full-time employees and is expected to result in approximately $25 million of one-time charges, including around $15 million of cash expenditures.
- GAAP losses and lower operating cash flow margin: The company recorded a GAAP net loss of $76.2 million with a (28)% margin, and operating cash flow margin declined to 14% from 23% in the prior-year quarter.
- Gross margin compression: GAAP gross margin fell to 72% from 75%, and non-GAAP gross margin declined to 77% from 79%, indicating higher cost of revenue relative to sales.
Insights
SentinelOne delivered stronger growth, turned non-GAAP profitable, and raised full-year guidance while absorbing a restructuring charge.
SentinelOne posted Q1 fiscal 2027 revenue of $276.7M, up 21%, with ARR reaching $1.163B, up 23%. Non-GAAP operating margin improved to 4% from (2)%, and non-GAAP net income was $12.3M, or $0.04 per diluted share, showing the model can generate profit as it scales.
The company announced a restructuring plan reducing headcount by about 8% to streamline operations and emphasize AI, Data, Cloud, and Endpoint. It expects a one-time charge of roughly $25M, including an estimated $12–$14M of severance and benefits and $10–$12M of stock-based compensation, mostly recognized in Q2 fiscal 2027.
Management raised fiscal 2027 guidance to revenue of $1.195–$1.205B and non-GAAP operating income of $115–$125M, with non-GAAP EPS of $0.32–$0.38. Adjusted free cash flow of $61.4M and a cash, cash equivalents, and investments balance of $812M as of April 30, 2026 provide financial flexibility as the restructuring progresses.
8-K Event Classification
4 items: 2.02, 2.05, 7.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 2.05
Costs Associated with Exit or Disposal Activities
Financial
The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 FY27 revenue: $276.7M
Annualized recurring revenue: $1.163B
GAAP net loss: $76.2M
+5 more
8 metrics
Q1 FY27 revenue
$276.7M
Three months ended April 30, 2026; up 21% year-over-year
Annualized recurring revenue
$1.163B
ARR as of April 30, 2026; 23% growth vs Q1 FY26
GAAP net loss
$76.2M
Net loss for three months ended April 30, 2026; (28)% margin
Non-GAAP net income
$12.3M
Q1 FY27 non-GAAP net income; 4% net income margin
Workforce reduction charge
≈$25M
Estimated one-time restructuring cost; about $15M cash-based
Cash, cash equivalents and investments
$812M
Balance as of April 30, 2026 on the balance sheet
Adjusted free cash flow
$61.4M
Q1 FY27 adjusted free cash flow; 22% margin
FY27 revenue guidance
$1.195–$1.205B
Full-year fiscal 2027 revenue outlook provided by management
Key Terms
Annualized Recurring Revenue (ARR), Non-GAAP operating margin, Adjusted free cash flow, Restructuring plan, +2 more
6 terms
Annualized Recurring Revenue (ARR) financial
"Annualized recurring revenue (ARR) grew 23% to $1,163 million as of April 30, 2026."
Annualized recurring revenue (ARR) is the predictable amount of income a business expects to earn from ongoing customer subscriptions or contracts over a year. It provides a clear picture of the company's steady revenue stream, much like estimating the annual salary based on consistent monthly pay. Investors use ARR to gauge the company's growth and stability over time.
Non-GAAP operating margin financial
"Non-GAAP operating margin was 4%, compared to (2)%."
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
Adjusted free cash flow financial
"Adjusted free cash flow margin was 22%, compared to 20%."
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Restructuring plan financial
"announced a restructuring plan (the “Plan”) to further streamline the Company’s organizational structure"
A restructuring plan is a company’s roadmap for reorganizing its operations, debts, or assets to improve financial health and efficiency; think of it as rewriting a household budget and chores when income changes. Investors care because the plan can affect a company’s ability to repay loans, generate profits, and sustain growth—successful restructuring can restore value, while a poorly executed one can signal continued trouble or reduced returns.
Rule of 40 financial
"Strong Execution Across Growth & Profitability, Continued Progress Toward Rule of 40"
The "rule of 40" is a simple guideline used by investors to assess the health of a company's growth and profitability. It adds a company's growth rate to its profit margin; if the total is 40% or higher, the company is generally considered to be performing well. This helps investors quickly gauge whether a company is balancing rapid growth with solid profits, much like checking if a car’s speed and fuel efficiency together are within a safe and efficient range.
Non-GAAP tax rate financial
"Effective in the first quarter of fiscal year 2027, we adopted a 17% non-GAAP tax rate"
Non-GAAP tax rate is the effective tax percentage a company applies when it reports adjusted earnings that exclude one-time items or other accounting adjustments. Investors care because it changes the after-tax profit used to value a business — like comparing a person’s weight with and without a heavy coat, it gives a standardized view of recurring results so comparisons and forecasts aren’t distorted by unusual tax impacts.
Earnings Snapshot
Revenue: $276.7M · Guidance included
Q1 fiscal 2027
Revenue
$276.7M
+21% YoY
ARR
$1.163B
+23% YoY
Non-GAAP operating margin
4%
from (2)% YoY
Non-GAAP net income per share (diluted)
$0.04
from $0.02 YoY
Guidance
For Q2 FY27, SentinelOne guides revenue to $289–$291M and non-GAAP operating income to $23–$25M. For full-year FY27, it expects $1.195–$1.205B revenue, $115–$125M non-GAAP operating income, and non-GAAP diluted EPS of $0.32–$0.38.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 28, 2026
(Exact name of registrant as specified in its charter)
_____________________________________________________________________________________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address, including zip code, of principal executive offices) | ||||||||
Registrant’s telephone number, including area code: (855 ) 868-3733
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||||||||
Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||
Item 2.02 Results of Operations and Financial Condition.
On May 28, 2026, SentinelOne, Inc. (the “Company”) announced its financial results for the first quarter of fiscal year 2027 ended April 30, 2026, by issuing an earnings presentation and a press release. The Company also announced that it would hold a webcast to discuss its financial results for the first quarter of fiscal year 2027 ended April 30, 2026. A copy of the press release and the earnings presentation is furnished herewith as Exhibit 99.1 and 99.2, respectively.
The Company makes reference to non-GAAP financial information in the Company’s press release, earnings presentation and the webcast call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release and earnings presentation.
The information contained herein and in the accompanying exhibits are “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 2.05 Costs Associated with Exit or Disposal Activities.
On May 28, 2026, SentinelOne, Inc. (the “Company”) announced a restructuring plan (the “Plan”) to further streamline the Company’s organizational structure, improve efficiencies, and concentrate investments across high-yielding growth areas including AI, Data, Cloud and Endpoint, while continuing to advance the Company’s ongoing commitment to profitable growth. The Plan includes a reduction of the Company’s current full-time employees by approximately 8% of the Company’s full-time employees. The Company currently estimates that it will incur a one-time charge of approximately $25 million in connection with the Plan, approximately $15 million of which are cash-based expenditures. The Company currently estimates that of these expenses, approximately (i) $12 million to $14 million will be related to severance payments and employee benefits and (ii) $10 million to $12 million will be related to stock-based compensation. This portion of the Plan is expected to be substantially completed in the second quarter of fiscal 2027 and the expenses will be recognized in such period.
Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process further in certain countries. The charges that the Company expects to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ from the estimates disclosed above. The Company may also incur charges and expenditures not currently contemplated due to unanticipated events that may occur in connection with the Plan. The Company intends to exclude the charges associated with the Plan from its non-GAAP financial measures.
Item 7.01 Regulation FD Disclosure.
On May 28, 2026, the Company posted supplemental investor materials on the Investors Relations section of its website, available at investors.sentinelone.com. The Company announces material information to the public through filings with the Securities and Exchange Commission, the investor relations page on the Company’s website, press releases, public conference calls, webcasts, the Company’s news website, available at sentinelone.com/press and blog posts on the Company’s corporate website at sentinelone.com/blog in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
The information disclosed by the foregoing channels could be deemed to be material information. As such, the Company encourages investors, the media and others to follow the channels listed above and to review the information disclosed through such channels.
Any updates to the list of disclosure channels through which the Company announces information will be posted on the investor relations page on the Company’s website.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements including, but not limited to, statements related to the number of positions affected by the Plan, the estimated restructuring charges associated with, and the time frame for completion of and recognition of charges associated with, the Plan. These forward-looking statements are based on management’s beliefs and assumptions and on information available to management as of the date they are made. However, investors should not place undue reliance on any such forward-looking statements because they speak only as of the date they are made. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from the Company’s historical experience and its present expectations or projections. These risks and uncertainties include, but are not necessarily limited to, those described in the Company’s filings with the Securities and Exchange Commission.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Exhibit Description | |||||||
99.1 | Press Release issued by SentinelOne, Inc. dated May 28, 2026. | |||||||
99.2 | Earnings Presentation, dated May 28, 2026. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SENTINELONE, INC. | ||||||||||||||
Date: May 28, 2026 | By: | /s/ Sonalee Parekh | ||||||||||||
Sonalee Parekh | ||||||||||||||
Chief Financial Officer | ||||||||||||||
Exhibit 99.1
SentinelOne Announces First Quarter Fiscal Year 2027 Financial Results
Revenue growth accelerated to 21% year-over-year
ARR growth accelerated to 23% year-over-year
Raising Non-GAAP Operating Income outlook for Fiscal Year 2027
MOUNTAIN VIEW, Calif. – May 28, 2026 – SentinelOne, Inc. (NYSE: S) today announced financial results for the first quarter of fiscal year 2027 ended April 30, 2026.
“We had a solid start to the year, highlighted by record net new ARR growth and a landmark milestone as our emerging solutions reached half of our total company ARR," said Tomer Weingarten, CEO of SentinelOne. "We are actively pushing the frontier of autonomous, agentic defense across AI, Data, Cloud, and the Endpoint. Enterprises recognize that securing the AI era requires machine speed defense which only truly modern infrastructure can deliver, and they are choosing SentinelOne as the foundation to build upon.”
“Our first-quarter results reflect record net new ARR growth and strong operating profit margin, highlighting the operating leverage inherent within our business model as we continue to scale,” said Sonalee Parekh, CFO of SentinelOne. “We are investing in innovation alongside our key growth opportunities while raising our operating income outlook for the year.”
First Quarter Fiscal Year 2027 Highlights
(All metrics are compared to the first quarter of fiscal year 2026 unless otherwise noted)
•Total revenue grew 21% to $277 million, compared to $229 million.
•Annualized recurring revenue (ARR) grew 23% to $1,163 million as of April 30, 2026.
•Customers with ARR of $100,000 or more grew 17% to 1,702 as of April 30, 2026.
•Gross margin: GAAP gross margin was 72%, compared to 75%. Non-GAAP gross margin was 77%, compared to 79%.
•Operating margin: GAAP operating margin was (29)%, compared to (38)%. Non-GAAP operating margin was 4%, compared to (2)%.
•Net income (loss) margin: GAAP net loss margin was (28)%, compared to (91)%. Non-GAAP net income margin was 4%, compared to 3%.
•Cash flow margin: Operating cash flow margin was 14%, compared to 23%. Adjusted free cash flow margin was 22%, compared to 20%.
•Cash, cash equivalents, and investments were $812 million as of April 30, 2026.
Financial Outlook
We are providing the following guidance for the second quarter of fiscal year 2027, and for fiscal year 2027 (ending January 31, 2027).
| Q2 Fiscal Year 2027 Guidance | Fiscal Year 2027 Guidance | |||||||||||||
| Revenue | $289 - 291 million | $1.195 - 1.205 billion | ||||||||||||
| Non-GAAP operating income | $23 - 25 million | $115 - 125 million | ||||||||||||
| Non-GAAP diluted earnings per share (EPS) | $0.06 - 0.08 | $0.32 - 0.38 | ||||||||||||
| Diluted weighted average shares outstanding | 347 million | 350 million | ||||||||||||
| Non-GAAP tax rate | 17% | 17% | ||||||||||||
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition-related compensation costs, restructuring charges, gains and losses on strategic investments, and certain discrete tax expenses. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP operating income, non-GAAP EPS and diluted weighted average shares outstanding is not available without unreasonable effort.
Webcast Information
We will host a live audio webcast for analysts and investors to discuss our earnings results for the first quarter of fiscal year 2027 and outlook for second quarter of fiscal year 2027 and full fiscal year 2027 today, May 28, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at investors.sentinelone.com.
We have used, and intend to continue to use, the Investor Relations section of our website at investors.sentinelone.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including but not limited to statements regarding our future growth, execution, product innovation and technological development, competitive position, and future financial and operating performance, including our financial outlook for the second quarter of fiscal year 2027 and our full fiscal year 2027; progress towards our long-term profitability targets; and general market trends. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words.
There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including but not limited to: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; actual or perceived network or security incidents against us; actual or perceived defects, errors or vulnerabilities in our platform; our ability to successfully integrate any acquisitions and strategic investments; risks associated with managing our rapid growth; general global, political, economic, and macroeconomic climate, including but not limited to, the changes in U.S.
federal spending and policies, including government shutdowns, significant political or regulatory developments or changes in trade policy, actual or perceived instability in the banking industry; supply chain disruptions; a potential recession, inflation, and interest rate volatility; geopolitical conflicts around the world; our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers' IT infrastructure; disruptions or other business interruptions that affect the availability of our platform including cybersecurity incidents; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation.
Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our filings and reports with the Securities and Exchange Commission (SEC), including our most recently filed Annual Report on Form 10-K, dated March 19, 2026, subsequent Quarterly Reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at investors.sentinelone.com and on the SEC’s website at www.sec.gov.
You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information and estimates available to us as of the date hereof, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
Non-GAAP Financial Measures
In addition to our results being determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.
Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow and adjusted free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period.
Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained below. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.
As presented in the “Reconciliation of GAAP to Non-GAAP Financial Information” table below, each of the non-GAAP financial measures excludes one or more of the following items:
Stock-based compensation expense
Stock-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation expense provide investors with a basis to measure our core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used.
Employer payroll tax on employee stock transactions
Employer payroll tax expenses related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for employer payroll taxes on employee stock transactions provide investors with a basis to measure our core performance against the performance of other companies without the variability created by employer payroll taxes on employee stock transactions as a result of the stock price at the time of employee exercise.
Amortization of acquired intangible assets
Amortization of acquired intangible assets expense is tied to the intangible assets that were acquired in conjunction with acquisitions, which results in non‑cash expenses that may not otherwise have been incurred. Management believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of our ongoing operations and provides investors with a better comparison of period-over-period operating results.
Acquisition-related compensation costs
Acquisition-related compensation costs include cash-based compensation expenses resulting from the employment retention of certain employees established in accordance with the terms of each acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the acquisitions in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management’s evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting.
Restructuring charges
Restructuring charges primarily relate to contract termination charges, severance payments, employee benefits, stock-based compensation and asset impairment charges related to facilities. These restructuring charges are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude restructuring charges from non-GAAP financial measures because it enables the comparison of period-over-period operating results from continuing operations.
Gains and losses on strategic investments
Gains and losses on strategic investments relate to the subsequent changes in the recorded value of our strategic investments. These gains and losses are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude gains
and losses from strategic investments from non-GAAP financial measures because it enables the comparison of period-over-period net income (loss).
Provision for income taxes
Certain discrete tax items that are not indicative of our core operating performance are excluded from our non-GAAP results. During the three months ended April 30, 2026, these items primarily consist of interest expense accrued on our liability under the final Assessment Agreement (the Agreement) entered into with the Israeli Tax Authority (ITA). These exclusions provide investors with a clearer view of our underlying financial results and facilitate meaningful comparisons across reporting periods.
Effective in the first quarter of fiscal year 2027, we adopted a 17% non-GAAP tax rate for current and future reporting periods. This rate is subject to change based on shifts in our geographic earnings mix or changes in applicable tax law.
Dilutive shares applying the treasury stock method
During periods in which we incur a net loss under a GAAP basis, we exclude certain potential common stock equivalents from our GAAP diluted shares because their effect would have been anti-dilutive. In periods where we have net income on a non-GAAP basis, these common stock equivalents would have been dilutive. Accordingly, we have included the impact of these common stock equivalents in the calculation of our non-GAAP diluted net income per share applying the treasury stock method.
Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Income (Loss) from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, Non-GAAP Net Income Margin and Non-GAAP Net Income Per Share
We define these non-GAAP financial measures as their respective GAAP measures, excluding the expenses referenced above. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance.
Free Cash Flow and Adjusted Free Cash Flow
We define free cash flow as cash provided by operating activities less purchases of property and equipment and capitalized internal-use software costs. We define adjusted free cash flow as free cash flow, excluding the impact of discrete cash income tax payments relating to the Agreement entered into with the ITA. We believe free cash flow and adjusted free cash flow are useful indicators of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.
Key Business Metrics
We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.
Annualized Recurring Revenue (ARR)
We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription, consumption, and usage-based customers, and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription, consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms.
Customers with ARR of $100,000 or More
We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active subscription for access to our platform. We count Managed Service Providers, Managed Security Service Providers, Managed Detection & Response firms, and Original Equipment Manufacturers, who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers.
Contact:
Investor Relations:
Saad Nazir
investors@sentinelone.com
Press:
Craig VerColen
press@sentinelone.com
Source: SentinelOne
NYSE: S
Category: Investors
SENTINELONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| April 30, | January 31, | ||||||||||
| 2026 | 2026 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
| Cash and cash equivalents | $ | 153,228 | $ | 169,627 | |||||||
Short-term investments | 503,559 | 459,041 | |||||||||
Accounts receivable, net | 180,688 | 289,079 | |||||||||
Deferred contract acquisition costs, current | 70,547 | 70,981 | |||||||||
Prepaid expenses and other current assets | 57,832 | 61,857 | |||||||||
Total current assets | 965,854 | 1,050,585 | |||||||||
Property and equipment, net | 87,597 | 84,008 | |||||||||
| Long-term investments | 155,702 | 140,898 | |||||||||
| Deferred contract acquisition costs, non-current | 85,347 | 89,659 | |||||||||
| Intangible assets, net | 119,038 | 129,548 | |||||||||
| Goodwill | 912,671 | 912,671 | |||||||||
| Other assets | 30,086 | 30,733 | |||||||||
Total assets | $ | 2,356,295 | $ | 2,438,102 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
| Accounts payable | $ | 7,624 | $ | 10,299 | |||||||
Accrued payroll and benefits | 74,752 | 79,006 | |||||||||
Deferred revenue, current | 509,963 | 549,790 | |||||||||
Accrued expenses and other current liabilities | 79,941 | 117,260 | |||||||||
Total current liabilities | 672,280 | 756,355 | |||||||||
| Deferred revenue, non-current | 76,228 | 83,277 | |||||||||
| Other liabilities | 169,666 | 161,325 | |||||||||
Total liabilities | 918,174 | 1,000,957 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock | — | — | |||||||||
Class A common stock | 34 | 33 | |||||||||
| Class B common stock | 1 | 1 | |||||||||
| Additional paid-in capital | 3,591,419 | 3,513,017 | |||||||||
| Accumulated other comprehensive income | 1,051 | 2,314 | |||||||||
| Accumulated deficit | (2,154,384) | (2,078,220) | |||||||||
| Total stockholders’ equity | 1,438,121 | 1,437,145 | |||||||||
| Total liabilities and stockholders’ equity | $ | 2,356,295 | $ | 2,438,102 | |||||||
SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited) | ||
Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
Revenue | $ | 276,657 | $ | 229,029 | |||||||
Cost of revenue(1) | 77,965 | 56,532 | |||||||||
| Gross profit | 198,692 | 172,497 | |||||||||
| Operating expenses: | |||||||||||
Research and development(1) | 95,770 | 72,253 | |||||||||
Sales and marketing(1) | 132,111 | 133,881 | |||||||||
General and administrative(1) | 50,497 | 48,679 | |||||||||
Restructuring(1) | 32 | 5,167 | |||||||||
Total operating expenses | 278,410 | 259,980 | |||||||||
| Loss from operations | (79,718) | (87,483) | |||||||||
| Interest income, net | 6,827 | 12,290 | |||||||||
| Other income, net | 2,490 | 492 | |||||||||
| Loss before income taxes | (70,401) | (74,701) | |||||||||
| Provision for income taxes | 5,763 | 133,492 | |||||||||
| Net loss | $ | (76,164) | $ | (208,193) | |||||||
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted | $ | (0.23) | $ | (0.63) | |||||||
| Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted | 337,000,297 | 327,976,349 | |||||||||
(1) Includes stock-based compensation expense as follows: | |||||||||||
| Cost of revenue | $ | 5,895 | $ | 4,665 | |||||||
| Research and development | 28,948 | 20,941 | |||||||||
| Sales and marketing | 20,285 | 22,915 | |||||||||
| General and administrative | 19,761 | 20,170 | |||||||||
| Restructuring | — | (36) | |||||||||
| Total stock-based compensation expense | $ | 74,889 | $ | 68,655 | |||||||
SENTINELONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | |||||||||||
| Net loss | $ | (76,164) | $ | (208,193) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 16,839 | 10,848 | |||||||||
Amortization of deferred contract acquisition costs | 20,347 | 18,610 | |||||||||
Non-cash operating lease costs | 1,058 | 1,096 | |||||||||
| Stock-based compensation expense | 74,889 | 68,655 | |||||||||
| Change in fair value of derivative instruments and related foreign currency loss on tax liabilities, net | 5,804 | — | |||||||||
| Net (gain) loss on strategic investments | (5,108) | 3 | |||||||||
Accretion of discounts, and amortization of premiums on investments, net | (753) | (2,780) | |||||||||
| Asset impairment charges | 236 | 2,171 | |||||||||
Other | 169 | 546 | |||||||||
Changes in operating assets and liabilities, net of effects of acquisitions | |||||||||||
| Accounts receivable | 108,222 | 80,580 | |||||||||
| Prepaid expenses and other assets | (2,583) | (4,215) | |||||||||
Deferred contract acquisition costs | (15,602) | (14,738) | |||||||||
| Accounts payable | (2,336) | 13,402 | |||||||||
Accrued expenses and other liabilities | (34,126) | 130,676 | |||||||||
| Accrued payroll and benefits | (4,253) | (16,408) | |||||||||
| Operating lease liabilities | (1,270) | (1,191) | |||||||||
| Deferred revenue | (46,876) | (26,788) | |||||||||
| Net cash provided by operating activities | 38,493 | 52,274 | |||||||||
| CASH FLOW FROM INVESTING ACTIVITIES: | |||||||||||
| Purchases of property and equipment | (424) | (146) | |||||||||
Purchases of intangible assets | (56) | (21) | |||||||||
| Capitalization of internal-use software | (7,354) | (6,684) | |||||||||
| Purchases of investments | (211,966) | (167,258) | |||||||||
Proceeds from sales, maturities and return of capital of investments | 156,867 | 108,517 | |||||||||
| Cash paid for acquisitions, net of cash acquired | (952) | — | |||||||||
| Net cash used in investing activities | (63,885) | (65,592) | |||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from exercise of stock options | 882 | 12,277 | |||||||||
Net cash provided by financing activities | 882 | 12,277 | |||||||||
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (24,510) | (1,041) | |||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period | 196,158 | 193,302 | |||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period | $ | 171,648 | $ | 192,261 | |||||||
SENTINELONE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(in thousands, except percentages and per share data)
(unaudited)
| Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cost of revenue reconciliation: | |||||||||||
| GAAP cost of revenue | $ | 77,965 | $ | 56,532 | |||||||
| Stock-based compensation expense | (5,895) | (4,665) | |||||||||
| Employer payroll tax on employee stock transactions | (231) | (230) | |||||||||
| Amortization of acquired intangible assets | (7,959) | (4,059) | |||||||||
| Acquisition-related compensation | (5) | (20) | |||||||||
| Non-GAAP cost of revenue | $ | 63,875 | $ | 47,558 | |||||||
| Gross profit reconciliation: | |||||||||||
| GAAP gross profit | $ | 198,692 | $ | 172,497 | |||||||
| Stock-based compensation expense | 5,895 | 4,665 | |||||||||
| Employer payroll tax on employee stock transactions | 231 | 230 | |||||||||
| Amortization of acquired intangible assets | 7,959 | 4,059 | |||||||||
| Acquisition-related compensation | 5 | 20 | |||||||||
| Non-GAAP gross profit | $ | 212,782 | $ | 181,471 | |||||||
| Gross margin reconciliation: | |||||||||||
| GAAP gross margin | 72 | % | 75 | % | |||||||
| Stock-based compensation expense | 2 | % | 2 | % | |||||||
| Employer payroll tax on employee stock transactions | — | % | — | % | |||||||
| Amortization of acquired intangible assets | 3 | % | 2 | % | |||||||
| Acquisition-related compensation | — | % | — | % | |||||||
| Non-GAAP gross margin | 77 | % | 79 | % | |||||||
| Research and development expense reconciliation: | |||||||||||
| GAAP research and development expense | $ | 95,770 | $ | 72,253 | |||||||
| Stock-based compensation expense | (28,948) | (20,941) | |||||||||
| Employer payroll tax on employee stock transactions | (391) | (531) | |||||||||
| Acquisition-related compensation | (2,239) | (674) | |||||||||
| Non-GAAP research and development expense | $ | 64,192 | $ | 50,107 | |||||||
| Sales and marketing expense reconciliation: | |||||||||||
| GAAP sales and marketing expense | $ | 132,111 | $ | 133,881 | |||||||
| Stock-based compensation expense | (20,285) | (22,915) | |||||||||
| Employer payroll tax on employee stock transactions | (471) | (692) | |||||||||
| Amortization of acquired intangible assets | (2,469) | (2,180) | |||||||||
| Acquisition-related compensation | (1,079) | (17) | |||||||||
| Non-GAAP sales and marketing expense | $ | 107,807 | $ | 108,077 | |||||||
| General and administrative expense reconciliation: | |||||||||||
| GAAP general and administrative expense | $ | 50,497 | $ | 48,679 | |||||||
| Stock-based compensation expense | (19,761) | (20,170) | |||||||||
SENTINELONE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(in thousands, except percentages and per share data)
(unaudited)
| Employer payroll tax on employee stock transactions | (498) | (1,295) | |||||||||
| Non-GAAP general and administrative expense | $ | 30,238 | $ | 27,214 | |||||||
| Restructuring expense reconciliation: | |||||||||||
| GAAP restructuring expense | $ | 32 | $ | 5,167 | |||||||
| Stock-based compensation | — | 36 | |||||||||
| Other restructuring charges | (32) | (5,203) | |||||||||
| Non-GAAP restructuring expense | $ | — | $ | — | |||||||
| Operating loss reconciliation: | |||||||||||
| GAAP operating loss | $ | (79,718) | $ | (87,483) | |||||||
| Stock-based compensation expense | 74,889 | 68,655 | |||||||||
| Employer payroll tax on employee stock transactions | 1,591 | 2,748 | |||||||||
| Amortization of acquired intangible assets | 10,428 | 6,239 | |||||||||
| Acquisition-related compensation | 3,323 | 711 | |||||||||
| Other restructuring charges | 32 | 5,203 | |||||||||
Non-GAAP operating income (loss) | $ | 10,545 | $ | (3,927) | |||||||
| Operating margin reconciliation: | |||||||||||
| GAAP operating margin | (29) | % | (38) | % | |||||||
| Stock-based compensation expense | 27 | % | 30 | % | |||||||
| Employer payroll tax on employee stock transactions | 1 | % | 1 | % | |||||||
| Amortization of acquired intangible assets | 4 | % | 3 | % | |||||||
| Acquisition-related compensation | 1 | % | — | % | |||||||
| Other restructuring charges | — | % | 2 | % | |||||||
| Non-GAAP operating margin | 4 | % | (2) | % | |||||||
| Provision for income taxes reconciliation: | |||||||||||
| GAAP provision for income taxes | $ | 5,763 | $ | 133,492 | |||||||
| Income tax adjustments | (3,264) | (131,283) | |||||||||
Non-GAAP provision for income taxes (1) | $ | 2,499 | $ | 2,209 | |||||||
| Net income (loss) reconciliation: | |||||||||||
| GAAP net loss | $ | (76,164) | $ | (208,193) | |||||||
| Stock-based compensation expense | 74,889 | 68,655 | |||||||||
| Employer payroll tax on employee stock transactions | 1,591 | 2,748 | |||||||||
| Amortization of acquired intangible assets | 10,428 | 6,239 | |||||||||
| Acquisition-related compensation | 3,323 | 711 | |||||||||
| Other restructuring charges | 32 | 5,203 | |||||||||
| Net (gain) loss on strategic investments | (5,108) | 3 | |||||||||
Provision for income taxes (1) | 3,264 | 131,283 | |||||||||
Non-GAAP net income | $ | 12,255 | $ | 6,649 | |||||||
SENTINELONE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (CONTINUED)
(in thousands, except percentages and per share data)
(unaudited)
| Net income (loss) margin reconciliation: | |||||||||||
GAAP net loss margin | (28) | % | (91) | % | |||||||
| Stock-based compensation | 27 | % | 30 | % | |||||||
| Employer payroll tax on employee stock transactions | 1 | % | 1 | % | |||||||
| Amortization of acquired intangible assets | 4 | % | 3 | % | |||||||
| Acquisition-related compensation | 1 | % | — | % | |||||||
| Other restructuring charges | — | % | 2 | % | |||||||
| Net (gain) loss on strategic investments | (2) | % | — | % | |||||||
Provision for income taxes (1) | 1 | % | 57 | % | |||||||
Non-GAAP net income margin* | 4 | % | 3 | % | |||||||
| GAAP basic and diluted shares | 337,000,297 | 327,976,349 | |||||||||
| Dilutive shares under the treasury stock method | 5,000,509 | 11,350,541 | |||||||||
| Non-GAAP diluted shares | 342,000,806 | 339,326,890 | |||||||||
| Diluted EPS reconciliation: | |||||||||||
| GAAP net loss per share, basic and diluted | $ | (0.23) | $ | (0.63) | |||||||
| Stock-based compensation expense | 0.22 | 0.20 | |||||||||
| Employer payroll tax on employee stock transactions | — | 0.01 | |||||||||
| Amortization of acquired intangible assets | 0.03 | 0.02 | |||||||||
| Acquisition-related compensation | 0.01 | — | |||||||||
| Other restructuring charges | — | 0.02 | |||||||||
| Net (gain) loss on strategic investments | (0.01) | — | |||||||||
Provision for income taxes (1) | 0.01 | 0.39 | |||||||||
Adjustment to fully diluted earnings per share (2) | 0.01 | 0.01 | |||||||||
| Non-GAAP net income per share, diluted | $ | 0.04 | $ | 0.02 | |||||||
*Certain figures may not sum due to rounding.
(1) Effective in the first quarter of fiscal year 2027, we adopted a long-term projected non-GAAP tax rate of 17% to calculate non-GAAP net income. The projected rate reflects our expectations of its long-term tax structure and jurisdictional mix of income.
(2) For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total to diluted non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share, and because of rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share.
SENTINELONE, INC.
SELECTED CASH FLOW INFORMATION
(in thousands)
(unaudited)
Reconciliation of cash provided by operating activities to free cash flow and adjusted free cash flow:
| Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| GAAP net cash provided by operating activities | $ | 38,493 | $ | 52,274 | |||||||
| Less: Purchases of property and equipment | (424) | (146) | |||||||||
| Less: Capitalized internal-use software | (7,354) | (6,684) | |||||||||
| Free cash flow | 30,715 | 45,444 | |||||||||
| Add: Cash income tax payments relating to the ITA Agreement | 30,658 | — | |||||||||
| Adjusted free cash flow | $ | 61,373 | $ | 45,444 | |||||||
| Net cash used in investing activities | $ | (63,885) | $ | (65,592) | |||||||
| Net cash provided by financing activities | $ | 882 | $ | 12,277 | |||||||
| Operating cash flow margin | 14 | % | 23 | % | |||||||
| Free cash flow margin | 11 | % | 20 | % | |||||||
| Adjusted free cash flow margin | 22 | % | 20 | % | |||||||
Q1 FY2027 Earnings Presentation May 28, 2026
2 Safe Harbor This presentation includes express and implied “forward-looking statements”, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms, and similar expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this presentation include, but are not limited to, statements concerning our estimates of market size and opportunity, our strategic plans or objectives, our growth prospects, projections (including our long-term model), actual or perceived defects, errors or vulnerabilities in our platform; our ability to successfully integrate any acquisitions and strategic investments; risks associated with managing our rapid growth; general global political, economic, and macroeconomic climate, intense competition in the market we compete in, fluctuations in our operating results, our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers’ IT infrastructure; disruptions or other business interruptions that affect the availability of our platform including cybersecurity incidents; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation. By their nature, these statements are subject to numerous risks and uncertainties, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements. Such risks and uncertainties are described in the “Risk Factors” of our most recent Form 10-K, most recent Form 10-Q, and subsequent filings with the Securities and Exchange Commission. Although our management believes that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward- looking statements will be achieved or occur. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update these forward- looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events. Certain information contained in this presentation and statements made orally during this presentation relate to or are based on studies, publications, surveys and other data obtained from third-party sources and SentinelOne’s own internal estimates and research. While SentinelOne believes these third-party studies, publications, surveys and other data to be reliable as of the date of this presentation, it has not independently verified, and makes no representations as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, no independent source has evaluated the reasonableness or accuracy of SentinelOne’s internal estimates or research and no reliance should be made on any information or statements made in this presentation relating to or based on such internal estimates and research.
3 Financial Information Use of Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe non-GAAP measures used in this presentation, such as non-GAAP Gross Margin, non-GAAP Operating Margin, non-GAAP Net Income Margin, Free Cash Flow Margin, and Adjusted Free Cash Flow Margin are useful in evaluating our operating performance. We use such non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non- GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non- GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of Free Cash Flow Margin and Adjusted Free Cash Flow Margin as a measure of our liquidity are limited as it does not represent the total increase or decrease in our cash balance for a given period. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. Please see the appendix included at the end of this presentation for a discussion of non- GAAP financial measures and a reconciliation of historical non-GAAP measures to historical GAAP measures. Our Fiscal Year Our fiscal year end is January 31, and our fiscal quarters end on April 30, July 31, October 31 and January 31.
4 Q1 FY27 Results Note: All financial figures are non-GAAP as of Q1 FY27. All metrics are compared to the first quarter of fiscal year 2026 unless otherwise noted. Fiscal year ends January 31. See Appendix for definition of metrics and a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. 23% ARR Growth $1,163M 17% Growth in Customers $100K+ ARR ~50% Emerging Products % of ARR 22% Adj. FCF Margin ~230 bps Improvement (y/y) Strong Growth and Margin Improvement Record Net New ARR Growth Record ARR per Customer Reached ~50% of ARR from non-Endpoint Solutions Strong Execution Across Growth & Profitability, Continued Progress Toward Rule of 40 21% Revenue Growth $277M 4% Operating Margin ~550 bps Improvement (y/y)
5 Q1 FY27 Performance Highlights • ARR growth accelerated for AI Security, Data and Cloud in Q1 • Reached ~50% of ARR from non-Endpoint Solutions (Data, AI, Cloud, and others) Platform Momentum • Prompt Security: nearly doubled ARR q/q, winning global enterprise customers • Purple AI: Launched Purple AI Auto-Investigations, delivering one-click automation and human level-reasoning at scale. AI-Security Leadership • 17% y/y growth of $100K+ ARR customers, reflecting momentum with enterprises • Improvement y/y and q/q of NRR of $100K+ ARR customers Customer Success • 55% y/y Net New ARR Growth in Q1; Record NNARR growth & 4th consecutive quarter of positive Net New ARR growth • ~550 bps margin improvement y/y & significantly outperformed Q1 margin guidance Strong Growth and Margin Improvement Note: All financial figures are non-GAAP as of Q1 FY27. All metrics are compared to the first quarter of fiscal year 2026 unless otherwise noted. Fiscal year ends January 31. See Appendix for definition of metrics and a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.
Singularity Platform & Market Opportunity
7 Autonomous Security for the Future AI on Device + Cloud Unified data platform Technology that scales people Machine-built context + response Automations reduce mean time to respond & recovery Tech Assisting People Cloud Based Monitoring People powered; technology assisted Data intensive “haystack” telemetry Reactive responses; Complex recovery People Driving Tech Signatures People powered Lacks scale and coverage Rarely finds advanced attacks Old / Legacy
8 AI-Powered Cybersecurity First to AI/ML Reinvented legacy antivirus (AV) and endpoint security with machine learning (ML). Behavioral AI AI-powered detections, investigations, and response. Industry Leader 24-patents in AI security. Forbes 50 AI company in 2020. Purple AI The first security company to launch a generative-AI Security Analyst assistant. Autonomous Security Unified Defense, Outpace Threats, and Enhance Security Operations. 2013—2020 2020—2025 2025+
9 Complete Attack Surface Protection Data, AI, and Automation Human Expertise Powered by AI & Human Intelligence
10 Powered by Autonomous Security Intelligence
11 Singularity Platform Solution Categories AI Security • Visibility across Native and Third-Party Data • Natural Language Engagement • Query Recommendations • Hunting Quickstarts & Notebooks • Auto-Investigations • Auto-Triage • Workflow automation Agentic SOC • CWP • CNAPP • CSPM • CIEM • AI-SPM • CDR • CDS Cloud • DSPM • Data Pipeline and Enrichment (via Observo AI) • AI SIEM (next-gen SIEM) • Hyperautomation (next-gen SOAR) • Data and Security Analytics • Data Storage and Retention • Log Management Data • EPP, EDR, XDR • Remote Ops Forensics • Binary Vault • Device Control • Ransomware Protection/Rollback Endpoint • Identity Threat Detection & Response (ITDR) • Identity Posture Management • Identity for Identity Providers Identity • NEW: Wayfinder Frontier AI Services • Wayfinder (AI + Human Intelligence) • Risk Analysis and Management • Singularity MDR • Vigilance MDR • WatchTower • Threat Intelligence Threat Services AI and Hyperautomation Covering a Broad Range of Distinct Cybersecurity Capabilities Across Multiple Solution Categories Unified Data Lake Singularity Marketplace Integrations • Gen-AI Security and Compliance (via Prompt Security)
12 Vast, Growing, and Diverse Total Addressable Market At the Intersection of Data, Security, and AI $100B+ Total Addressable Market 2025 Market Forecasts* Cloud Security $12B Data Analytics $31B Endpoint Security $17B Generative AI Security $3B $50B+ • Identity Security • Exposure Management • Managed Detection and Response • Data Protection • Threat Intelligence Source: IDC and company estimates. See appendix.
13 Partner Ecosystem Scales Market Presence VARs, DistributorsFederal MSSPs, MSPs Hyperscalers, OEMs Winning Together Cyber Insurers Incident Response Leader in MSSP Ecosystem Extending scale and reach through Hyperscalers and OEM relationships SentinelOne Risk Assurance Initiative FedRAMP High Authorized for Endpoint, AI-SIEM, Purple AI, CNAPP, and Hyperautomation Partnering with a majority of Incident Response providers Expanding Partnerships
Recognized Technology Leadership Industry Accolades & Recognitions
15 Trusted and Industry Proven Gartner®, Magic Quadrant for Endpoint Protection, Deepak Mishra et al., 26 May 2026, GARTNER and MAGIC QUADRANT are trademarks of Gartner, Inc. and its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings call), and the opinions expressed in the Gartner Content are subject to change without notice. Gartner®, Peer Insights Voice of the Customer for Extended Detection and Response, By Peer Contributors, 23 May 2025. Gartner®, Peer Insights , Voice of the Customer for Managed Detection and Response, Peer Contributors, 28 November 2024. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT and PEER INSIGHTS is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Earnings Presentation), and the opinions expressed in the Gartner Content are subject to change without notice. IDC XDR MarketScape — Source: IDC 2025 Leader G2 Grid® for Cloud-Native Application Protection Platform (CNAPP), Highest Rated 4.9 out of 5 FedRAMP High Authorized for Endpoint, AI-SIEM, Purple AI, CNAPP, and Hyperautomation A Leader in Frost Radar A Growth and Innovation Leader in 2025 Frost & Sullivan Radar for Endpoint, MDR and CWPP A Leader in the 2026 Gartner® Magic Quadrant for Endpoint Protection for 6th consecutive year 97% Would Recommend SentinelOne XDR (Based on 144 reviews, 97%, Jan 2025) A Leader in Unified Agentic Defense Named an Innovator in inaugural Majestic Technoscope from Software Analyst Cyber Research A Leader in the IDC MarketScape Worldwide Extended Detection and Response Software 2025 Vendor Assessment SE Labs AAA Rating in Endpoint Security Protection 100% Detection, Zero False Positives, 100% of attackers stopped
16Produced by IDC Custom Solutions | IDC #US53337725 | Research by Christopher Kissel, Matthew Marden. This IDC material is licensed for external use and in no way does the use or publication of IDC research indicate IDC’s endorsement of the sponsor’s or licensee’s products or strategies. ©2025 IDC. Reproduction is forbidden unless authorized. All rights reserved. CCPA The Business Value of Purple AI IDC’s study demonstrates how SentinelOne’s Purple AI enables organizations to enhance their security operations by providing natural language processing capabilities, automated summarization for event logs, and suggested investigation questions. As a result, interviewed SentinelOne customers achieve meaningful reductions in security-related risk and efficiencies for their security and threat investigation team. 338% Three-year return on investment 55% Faster to remediate security threat KEY RESULTS 60% Reduced likelihood of major security event
17 Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. The Growth and Innovation Leader in the 2025 Frost & Sullivan Radar for Endpoint Recognized as the Best Performing Vendor Frost Radar : Endpoint Security
18Source: SentinelOne, SC Media Best Endpoint Security and Cloud Security at 2025 SC Awards
19 IDC MarketScape: Worldwide Extended Detection and Response Software 2025 Vendor Assessment Recognized as a Leader Source: IDC 2025 C a p a b il it ie s Strategies eaders ajor Players Contenders Participants icrosoft CrowdStrike rend icroSentinelOne Sophos rellix Palo Alto etworks Cisco lastic Check Point Darktrace evel lue Stellar Cyber ai Fortinet ectra AI Anomali itdefender S ntinelOne
20Source: IDC, Business Value of SentinelOne AI SIEM (March 2026) Business Value of Singularity AI SIEM “One of the most significant business impacts of SentinelOne Singularity AI SIEM is that we can take the same budget and increase our security posture. We’re also able to leverage what we’re seeing to help the business through metrics and statistics.” 331% Return on investment 75% Faster Investigations KEY RESULTS 70% Faster Queries
21 Best-in-class Portfolio Across Security, AI and Data Alumni Acquired by Cisco Acquired by Rubrik Acquired by Rapid7 Acquired by Kela
22 A Culture Built on Trust T R U S T | A C C O U N TA B I L I T Y | I N G E N U I T Y | O N E S E N T I N E L | R E L E N T L E S S N E S S | C O M M U N I T Y OUR VALUES
Q1 FY2027 Financial Overview
24 Q1 FY27 ARR & Revenue Growth Strong Growth Profile $229 $242 $259 $271 $277 0 50 100 150 200 250 300 Q1'26 Q2'26 Q3'26 Q4'26 Q1'27 Revenue (in millions) 21% (y/y) Growth in Q1 FY27 Reported Revenue Met or Exceeded Guidance Scaling the Best-in-Class AI Security Platform for the Future $948 $1,001 $1,055 $1,119 $1,163 $0 $20 0 $40 0 $60 0 $80 0 $1, 000 $1, 200 $1, 400 Q1'26 Q2'26 Q3'26 Q4'26 Q1'27 Annualized Recurring Revenue (ARR) (in millions) 23% (y/y) Growth in Q1 FY27 $28 $44 $0 $10 $20 $30 $40 $50 Q1'26 Q1'27 Quarterly Net New ARR (in millions) 55% (y/y) Growth in Q1 FY27
25 Q1 FY27 Margin Expansion Strong gross margin profile Gross Margin % (non-GAAP) 79% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Q1 FY26 Q1 FY27 Continued operating margin expansion Operating Margin % (non-GAAP) -1.7% 3.8% -3.0% -2.0% -1.0% 0.0 % 1.0 % 2.0 % 3.0 % 4.0 % 5.0 % 6.0 % Q1 FY26 Q1 FY27 Improving net income profitability Net Income Margin % (non-GAAP) 2.9% 4.4% 0.0 % 1.0 % 2.0 % 3.0 % 4.0 % 5.0 % 6.0 % 7.0 % 8.0 % 9.0 % Q1 FY26 Q1 FY27 Record TTM Adjusted FCF Margin Adj. Free Cash Flow Margin % (non-GAAP, Trailing-Twelve Months) 2.1% 6.5% 0.0 % 1.0 % 2.0 % 3.0 % 4.0 % 5.0 % 6.0 % 7.0 % 8.0 % 9.0 % 10. 0% Q1 FY26 Q1 FY27 Focused on Operational Excellence, Driving Continued Margin Expansion Note: All financial figures are non-GAAP as of Q1 FY27. All metrics are compared to the first quarter of fiscal year 2026 unless otherwise noted. Fiscal year ends January 31. See Appendix for definition of metrics and a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.
26 Customer Growth & Platform Momentum Accelerating Multi-Product Expansion Across the Singularity Platform Customers with ARR of $100K or More 17% (y/y) Growth % of Enterprise Customers with 3 or More Solutions* 75%+ (y/y) Growth % of Enterprise Customers with 4 or More Solutions* 120%+ (y/y) Growth % of Enterprise Customers with 5 or More Solutions* 150%+ (y/y) Growth * Enterprise customers consist of organizations with 1,000 or more employees. 1,459 1,702 Q1'26 Q1'27 31% 39% 65% FY24 FY25 FY26 13% 19% 42% FY24 FY25 FY26 4% 9% 22% FY24 FY25 FY26
27 Guidance Note: See Appendix for definition of metrics and a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. ~350 Million~347 Million Diluted Weighted Avg Shares Outstanding ~17%~17%Non-GAAP Tax Rate $0.32 - $0.38$0.06 - $0.08Non-GAAP EPS $115 - $125 Million$23 - $25 MillionNon-GAAP Operating Income $1.195 - $1.205 Billion$289 - $291 MillionRevenue Q2 FY27 Full Year FY27
Appendix
29 Appendix Key Business Metrics We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. Annualized Recurring Revenue (ARR) We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription, consumption and usage-based customers, and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms. Customers with ARR of $100,000 or More We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. Definitions Customers: We define a customer as an entity that has an active subscription for access to our platform. We count Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), Managed Detection & Response firms (MDRs), and Original Equipment Manufacturers (OEMs), who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers.
30 Appendix (Cont’d) Non-GAAP Gross Margin We define non-GAAP gross margin as GAAP gross margin, excluding stock-based compensation (SBC) expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets and acquisition-related compensation costs. Non-GAAP Operating Margin We define non-GAAP operating margin as GAAP operating margin, excluding SBC expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition-related compensation costs and restructuring charges. Non-GAAP Net Income, Non-GAAP Net Income Margin and Non-GAAP Net Income per Share, Basic and Diluted We define non-GAAP net income as GAAP net loss excluding SBC expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition-related compensation costs, restructuring charges, gains and losses on strategic investments and provision for (benefit from) income taxes. We define non-GAAP net income per share, basic and diluted, as non-GAAP net income divided by the weighted average common shares outstanding, which includes the effect of dilutive shares applying the treasury stock method. Free Cash Flow and Adjusted Free Cash Flow Free cash flow and adjusted free cash flow are non-GAAP financial measures. We define free cash flow as cash provided by operating activities less purchases of property and equipment and capitalized internal-use software costs. We define adjusted free cash flow as free cash flow, excluding the impact of discrete cash payments made under the final Assessment Agreement entered into with the Israeli Tax Authority, which is a discrete event. We believe free cash flow and adjusted free cash flow are useful indicators of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.
31 Appendix (Cont’d) Reports used for data shown in the chart titled ‘Vast, Growing, and Diverse Total Addressable Market’: CY25 TAM: • IDC Worldwide Corporate Endpoint Security Forecast Update, 2023–2027: Endpoint Security Platformization Propels Robust Growth (January 2024) • IDC Worldwide Threat Intelligence Forecast, 2024–2028: Beyond Reaction—The Rise of Predictive Threat Intelligence (April 2024) • IDC Worldwide Security Information & Event Management Forecast, 2023–2027: In the Face of XDR, Many Organizations Are Still Living in SIEM (August 2023) • IDC Worldwide and U.S. Comprehensive Security Services Forecast, 2024–2028 (April 2024) • Forrester Global AI Software Forecast, 2023–2030 (September 2023) • Company estimates
32 GAAP to Non-GAAP Reconciliation Three Months Ended April 30, 2026 2025 Cost of revenue reconciliation: GAAP cost of revenue $ 77,965 $ 56,532 Stock-based compensation expense (5,895) (4,665) Employer payroll tax on employee stock transactions (231) (230) Amortization of acquired intangible assets (7,959) (4,059) Acquisition-related compensation (5) (20) Non-GAAP cost of revenue $ 63,875 $ 47,558 Gross profit reconciliation: GAAP gross profit $ 198,692 $ 172,497 Stock-based compensation expense 5,895 4,665 Employer payroll tax on employee stock transactions 231 230 Amortization of acquired intangible assets 7,959 4,059 Acquisition-related compensation 5 20 Non-GAAP gross profit $ 212,782 $ 181,471 Gross margin reconciliation: GAAP gross margin 72 % 75 % Stock-based compensation expense 2 % 2 % Employer payroll tax on employee stock transactions — % — % Amortization of acquired intangible assets 3 % 2 % Acquisition-related compensation — % — % Non-GAAP gross margin 77 % 79 %
33 GAAP to Non-GAAP Reconciliation Three Months Ended April 30, 2026 2025 Research and development expense reconciliation: GAAP research and development expense $ 95,770 $ 72,253 Stock-based compensation expense (28,948) (20,941) Employer payroll tax on employee stock transactions (391) (531) Acquisition-related compensation (2,239) (674) Non-GAAP research and development expense $ 64,192 $ 50,107 Sales and marketing expense reconciliation: GAAP sales and marketing expense $ 132,111 $ 133,881 Stock-based compensation expense (20,285) (22,915) Employer payroll tax on employee stock transactions (471) (692) Amortization of acquired intangible assets (2,469) (2,180) Acquisition-related compensation (1,079) (17) Non-GAAP sales and marketing expense $ 107,807 $ 108,077 General and administrative expense reconciliation: GAAP general and administrative expense $ 50,497 $ 48,679 Stock-based compensation expense (19,761) (20,170) Employer payroll tax on employee stock transactions (498) (1,295) Non-GAAP general and administrative expense $ 30,238 $ 27,214
34 GAAP to Non-GAAP Reconciliation Three Months Ended April 30, 2026 2025 Restructuring expense reconciliation: GAAP restructuring expense $ 32 $ 5,167 Stock-based compensation — 36 Other restructuring charges (32) (5,203) Non-GAAP restructuring expense $ — $ — Operating loss reconciliation: GAAP operating loss $ (79,718) $ (87,483) Stock-based compensation expense 74,889 68,655 Employer payroll tax on employee stock transactions 1,591 2,748 Amortization of acquired intangible assets 10,428 6,239 Acquisition-related compensation 3,323 711 Other restructuring charges 32 5,203 Non-GAAP operating income (loss) $ 10,545 $ (3,927) Operating margin reconciliation: GAAP operating margin (29) % (38) % Stock-based compensation expense 27 % 30 % Employer payroll tax on employee stock transactions 1 % 1 % Amortization of acquired intangible assets 4 % 3 % Acquisition-related compensation 1 % — % Other restructuring charges — % 2 % Non-GAAP operating margin 4 % (2)%
35 GAAP to Non-GAAP Reconciliation Three Months Ended April 30, 2026 2025 Provision for income taxes reconciliation: GAAP provision for income taxes 5,763 133,492 Income tax adjustments (3,264) (131,283) Non-GAAP provision for income taxes (1) $ 2,499 $ 2,209 Net income (loss) reconciliation: GAAP net loss $ (76,164) $ (208,193) Stock-based compensation expense 74,889 68,655 Employer payroll tax on employee stock transactions 1,591 2,748 Amortization of acquired intangible assets 10,428 6,239 Acquisition-related compensation 3,323 711 Other restructuring charges 32 5,203 Net (gain) loss on strategic investments (5,108) 3 Provision for income taxes 3,264 131,283 Non-GAAP net income $ 12,255 $ 6,649 Net income (loss) margin reconciliation: GAAP net loss margin (28) % (91) % Stock-based compensation 27 % 30 % Employer payroll tax on employee stock transactions 1 % 1 % Amortization of acquired intangible assets 4 % 3 % Acquisition-related compensation 1 % — % Other restructuring charges — % 2 % Net gain (loss) on strategic investments (2)% — % Provision for income taxes 1 % 57 % Non-GAAP net income margin* 4 % 3 %
36 GAAP to Non-GAAP Reconciliation Three Months Ended April 30, 2026 2025 GAAP basic and diluted shares 337,000,297 327,976,349 Dilutive shares under the treasury stock method 5,000,509 11,350,541 Non-GAAP diluted shares 342,000,806 339,326,890 Diluted EPS reconciliation: GAAP net loss per share, basic and diluted $ (0.23) $ (0.63) Stock-based compensation expense 0.22 0.20 Employer payroll tax on employee stock transactions — 0.01 Amortization of acquired intangible assets 0.03 0.02 Acquisition-related compensation 0.01 — Other restructuring charges — 0.02 Net gain (loss) on strategic investments (0.01) — Provision for income taxes 0.01 0.39 Adjustment to fully diluted earnings per share (2) 0.01 0.01 Non-GAAP net income per share, diluted $ 0.04 $ 0.02 *Certain figures may not sum due to rounding. (1) Effective in the first quarter of fiscal year 2027, the Company adopted a long-term projected non-GAAP tax rate of 17% to calculate non-GAAP net income. The projected rate reflects the Company’s expectations of its long-term tax structure and jurisdictional mix of income. (2) For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total to diluted non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share, and because of rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share.
37 Selected Cash Flow Information Three Months Ended April 30, 2026 2025 Reconciliation of cash provided by operating activities to free cash flow and adjusted free cash flow: GAAP net cash provided by operating activities $ 38,493 $ 52,274 Less: Purchases of property and equipment (424) (146) Less: Capitalized internal-use software (7,354) (6,684) Free cash flow 30,715 45,444 Add: Cash income tax payments relating to the ITA Agreement 30,658 — Adjusted free cash flow $ 61,373 $ 45,444 Net cash used in investing activities $ (63,885) $ (65,592) Net cash provided by (used in) financing activities $ 882 $ 12,277 Operating cash flow margin 14 % 23 % Free cash flow margin 11 % 20 % Adjusted free cash flow margin 22 % 20 %
FAQ
How did SentinelOne (S) perform financially in Q1 fiscal 2027?
SentinelOne delivered solid growth with improving profitability in Q1 fiscal 2027. Revenue rose 21% year-over-year to $276.7 million, while annualized recurring revenue reached $1.163 billion, up 23%. Non-GAAP operating margin improved to 4%, and non-GAAP net income was $12.3 million, or $0.04 per diluted share.
What restructuring actions did SentinelOne (S) announce on May 28, 2026?
SentinelOne announced a restructuring plan focused on streamlining operations and refocusing investments. The plan includes reducing current full-time employees by about 8% and is expected to generate a one-time charge of approximately $25 million, largely for severance, benefits, and stock-based compensation, mostly recognized in Q2 fiscal 2027.
What is SentinelOne’s (S) financial outlook for fiscal year 2027?
For fiscal 2027, SentinelOne guided to continued growth and stronger profitability. It expects revenue between $1.195 billion and $1.205 billion, non-GAAP operating income of $115–$125 million, and non-GAAP diluted EPS of $0.32–$0.38, assuming a 17% non-GAAP tax rate and about 350 million diluted shares.
How strong is SentinelOne’s (S) balance sheet and cash flow position?
SentinelOne reported a solid liquidity profile at the end of Q1 fiscal 2027. Cash, cash equivalents, and investments totaled $812 million as of April 30, 2026. Adjusted free cash flow was $61.4 million in the quarter, yielding a 22% adjusted free cash flow margin despite lower operating cash flow margin year-over-year.
How are SentinelOne’s (S) margins trending on a GAAP and non-GAAP basis?
Margins showed mixed trends with notable non-GAAP improvement. GAAP gross margin declined to 72% from 75%, and GAAP net loss margin was (28)%. However, non-GAAP operating margin improved to 4% from (2)%, and non-GAAP net income margin increased to 4% from 3% in the prior-year quarter.
What key business metrics did SentinelOne (S) highlight for Q1 fiscal 2027?
SentinelOne emphasized subscription strength and larger customer traction. Annualized recurring revenue was $1.163 billion, up 23%, and customers with ARR of $100,000 or more grew 17% to 1,702. The company also noted 55% year-over-year growth in quarterly net new ARR and highlighted increasing adoption of non-endpoint solutions.