SentinelOne (S) Q2 FY2027 Earnings Call: Revenue Up 21%, Outlook Raised
Source Tradingkey
Key Takeaways
- Q2 FY2027 revenue rose 21% year over year to $292 million, while total ARR increased 22%. Net new ARR reached a record second-quarter $56 million, up 4%.
- Non-GAAP operating margin reached a company-record 10%, expanding 820 basis points year over year. Non-GAAP EPS doubled to $0.08.
- AI security ARR from Prompt Security and Purple AI tripled year over year. Management expects AI security to become SentinelOne’s next nine-figure ARR category.
- Remaining performance obligations increased 45% to a record $1.7 billion, supported by larger customer commitments and longer contract durations.
- SentinelOne raised its FY2027 revenue outlook to $1.202 billion-$1.207 billion and its non-GAAP operating income outlook to $124 million-$128 million.
- Management said data, cloud and AI security are gaining share within the ARR mix, while endpoint security continues to benefit from large-enterprise consolidation and legacy replacement opportunities.
Key Financial Results
| Metric | Q2 FY2027 result | Year-over-year change or context |
|---|---|---|
| Revenue | $292 million | Up 21% |
| Total ARR | Not specified | Up 22% |
| Net new ARR | $56 million | Up 4%; record Q2 level |
| International revenue mix | 39% | Reflects expanding global presence |
| Non-GAAP operating margin | 10% | Up 820 basis points; company record |
| Non-GAAP EPS | $0.08 | Doubled year over year |
| Sales and marketing expense | 34% of revenue | Improved by more than 900 basis points |
| Trailing 12-month adjusted free cash flow margin | 6% | Improved by roughly 400 basis points |
| Remaining performance obligations | $1.7 billion | Up 45% |
| Cash, cash equivalents and investments | $813 million | No debt |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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