SentinelOne Q1 Earnings Meet Expectations, Revenues Miss, Stock Down

SentinelOne, Inc. S reported first-quarter fiscal 2026 results, with adjusted earnings meeting the Zacks Consensus Estimate and total revenues marginally topping the same. On a year-over-year basis, the top and bottom lines grew.

The quarterly performance reflects incremental benefits realized from the implementation of the innovation engine, resulting in the increased adoption across AI, Data, Cloud and Endpoint. Furthermore, the company’s continuous focus on ensuring operational discipline with the scalability of its business model supported the bottom line during the quarter.

Moving forward, the company aims to drive its efficiency level and keep investing in innovations to be able to deliver sustainable and profitable growth amid market uncertainties.

S stock plunged 11.4% during yesterday’s after-hours trading session following the earnings release. The investors’ sentiments are likely to have been discouraged by the company pulling back its fiscal 2026 top-line view.

SentinelOne’s Q1 Earnings & Revenues

The company reported adjusted earnings per share (EPS) of two cents, which met the Zacks Consensus Estimate. In the year-ago period, it reported a break-even adjusted EPS.

Total revenues of $229.03 million marginally topped the consensus mark of $229 million by 0.4% and grew 22.9% year over year. The uptick was mainly driven by increased sales to new customers, with sales of additional licenses and platform solutions to existing customers. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

SentinelOne, Inc. Price, Consensus and EPS Surprise

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

As of April 30, 2025, annualized recurring revenues (ARR) grew 24% year over year to $948.1 million. ARR determines the annualized revenue run rate of the company’s subscription and consumption and usage-based agreements at the end of a reporting period.

SentinelOne’s Operating Highlights

Adjusted gross profit during the quarter was 79%, at par year over year, with adjusted operating margin having a negative value of 2% compared with the negative value of 6% reported in the year-ago quarter.

Total operating expenses of $260 million increased year over year by 19.9% due to elevated research and development, sales and marketing, and general and administrative expenses, alongside a one-time restructuring expense.

Financial Glimpse of SentinelOne

As of April 30, 2025, SentinelOne had cash and cash equivalents of $188.6 million compared with $186.6 million at fiscal 2025-end. Non-current deferred revenues were $91.8 million compared with $102 million at fiscal 2025-end.

Backed by the robust market demand trends, the company debuted its share repurchase authorization program. Its board of directors has authorized $200 million worth of share repurchases under the new program, which are to be made from time to time in the open market or through other methods, subject to market conditions and regulatory requirements.

SentinelOne Unveils Q2 View & Pulls Back on Fiscal 2026

The company expects fiscal second-quarter revenues to be about $242 million, reflecting 21.7% year-over-year growth from $198.9 million. The adjusted gross margin is expected to be 79%, down from 80% reported a year ago.

For fiscal 2026, revenues are forecasted between $996 million and 1,001 million, down from the prior projected range of $1,007-$1,012 million. The current expected range compares with $821.5 million reported in fiscal 2025.

Full-year adjusted gross margin is still expected to be between 78.5% and 79.5%, which compares with 79% reported last fiscal year. The company still expects the adjusted operating margin to be in the range of 3-4%, which compares favorably with the negative 3% value reported in fiscal 2025.

SentinelOne’s Zacks Rank & Key Picks

S currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Computer and Technology sector.

Taboola.com Ltd. TBLA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 118.6%, on average. The stock is at break-even year to date. The Zacks Consensus Estimate for Taboola’s 2025 sales and EPS implies an increase of 5.7% and 3,900%, respectively, from a year ago.

Allient Inc. ALNT currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 19.7%, on average. The stock has trended up 28.9% year to date.

The Zacks Consensus Estimate for Allient’s 2025 sales and EPS implies an increase of 0.7% and 29.5%, respectively, from a year ago.

monday.com Ltd. MNDY presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 52.3%, on average. The stock has gained 26.2% year to date. 

The Zacks Consensus Estimate for monday.com’s 2025 sales and EPS implies an increase of 25.6% and 6.3%, respectively, from a year ago.

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

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