SentinelOne Q3 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall

SentinelOne S reported third-quarter fiscal 2026 earnings of 7 cents per share, which surpassed the Zacks Consensus Estimate by 40%. The company reported break-even results in the year-ago quarter.

Revenues were $258.9 million, up 23% year over year and beat the consensus mark by 1.14%. Roughly 50% of the quarter’s bookings were generated from emerging products, supported by the triple-digit growth of Singularity Data. 

As of Oct. 31, 2025, annualized recurring revenues (ARR) grew 23% year over year to $1.06 billion. Customers with above $100,000 or more in ARR grew 20% year over year to 1,572 as of the same date, driven by continued momentum in business generation and expansion with existing customers.

SentinelOne’s shares moved down 11.62% at the time of writing this article. The company’s shares have plunged 34.1% in the past year against the Zacks Computer & Technology sector’s rise of 25.1%.

SentinelOne’s Operating Highlights

Adjusted gross profit in the reported quarter was 78.5%, which contracted roughly 90 bps year over year.

SentinelOne, Inc. Price, Consensus and EPS Surprise

 

SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote

Total operating expenses of $185.6 million increased 4.1% year over year due to elevated research and development (up 21.4% year over year), offset by lower sales and marketing (down 1.9% year over year), and lower general and administrative expenses (down 2.3% year over year).

Non-GAAP operating income was $17.7 million against a non-GAAP loss of $10.7 million in the year-ago quarter.

SentinelOne’s Balance Sheet Remains Strong

As of Oct. 31, 2025, SentinelOne had cash, cash equivalents and investments of $873.6 million.

The free cash flow was $15.9 million compared with the free cash burn of $12.7 million reported in the year-ago quarter.

S Offers Q4 & FY26 Guidance

For fourth-quarter fiscal 2026, SentinelOne expects revenues of $271 million, indicating year-over-year growth of 20.2%.

The non-GAAP gross margin is expected to be 77.5%. The company expects the adjusted operating margin to be 5%, suggesting a year-over-year improvement of 400 basis points.

For fiscal 2026, revenues are forecast to be $1 billion. The adjusted gross margin is expected to be 78.5% for fiscal 2026.

For fiscal 2026, the company expects the adjusted operating margin to be 3%.

SentinelOne’s Zacks Rank & Stocks to Consider

Currently, SentinelOne carries a Zacks Rank #3 (Hold).

Advanced Energy Industries AEIS, Digital Turbine APPS and Amphenol APH are some better-ranked companies that investors can consider in the broader Zacks Computer & Technology sector. These three companies sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Energy Industries' shares have soared 85.6% year to date. The Zacks Consensus Estimate for Advanced Energy Industries' 2025 earnings is pegged at $6.23 per share, up 9.7% over the past 30 days, implying growth of 67.92% from the year-ago quarter’s reported figure.

Digital Turbine shares have skyrocketed 200.6% year to date. The Zacks Consensus Estimate for APPS’ 2026 earnings is pegged at 33 cents per share, down four cents in the past 30 days. Digital Turbine reported earnings of 35 cents per share in fiscal 2025

Amphenol shares have surged 100.8% year to date. The Zacks Consensus Estimate for Amphenol’s 2025 earnings has increased 2.2% to $3.29 per share in the past 30 days, indicating year-over-year growth of 74.07%.

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This article originally published on Zacks Investment Research (zacks.com).

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