SentinelOne Raises Fiscal 2027 Profit Outlook After Record Margin

The Tip Desk · August 27, 2026 · 2 min read

Non-GAAP operating margin reached 10% in the July quarter as the company lifted full-year operating income guidance to as much as $128 million.

SentinelOne, Inc. (S) posted a 10% non-GAAP operating margin in the second quarter of fiscal 2027, a sharp step-up from 4% in the immediately preceding quarter, and raised its full-year operating income outlook.

The cybersecurity software company reported revenue of $292 million, up 21% from a year earlier, matching the year-over-year growth rate of the prior quarter and exceeding its $289 million to $291 million second-quarter guide. Annualized recurring revenue rose 22% to $1.218 billion as of July 31, 2026, after 23% growth to $1.163 billion as of April 30. Customers with ARR of $100,000 or more increased 13% to 1,715.

Chief Financial Officer Sonalee Parekh said the company exceeded all top- and bottom-line guided metrics and achieved record profitability. Chief Executive Officer Tomer Weingarten described the quarter as showing progress across growth, platform adoption, and AI-related security products.

Non-GAAP operating income was $30.5 million, compared with $5.4 million a year earlier. Non-GAAP net income margin was 10%, versus 5% a year earlier. GAAP results remained a loss: diluted earnings were $(0.27) a share, versus $(0.22) a year earlier. GAAP operating margin was (31)%, versus (33)% a year earlier.

GAAP restructuring expense was $24.4 million in the three months ended July 31, 2026, versus $3.9 million a year earlier. Sales and marketing expense was $123.5 million. GAAP gross margin was 72%, matching the first-quarter fiscal 2027 comparison of 72% versus 75% a year earlier. Non-GAAP gross margin was 77%.

Cash, cash equivalents, and investments were $813 million as of July 31, 2026. Free cash flow was $(13.2) million in the three months ended July 31, 2026, versus $(7.1) million a year earlier.

For the third quarter of fiscal 2027, SentinelOne guided revenue to $309 million to $311 million and non-GAAP operating income to $38 million to $40 million. For the full fiscal year ending January 31, 2027, it raised revenue guidance to $1.202 billion to $1.207 billion from $1.195 billion to $1.205 billion and raised non-GAAP operating income guidance to $124 million to $128 million from $115 million to $125 million. Non-GAAP diluted earnings guidance for the year was $0.30 to $0.32 a share, versus the prior $0.32 to $0.38.

Parekh said the company is scaling with discipline, investing in AI growth opportunities while driving operating leverage. The company adopted a 17% non-GAAP tax rate effective in the first quarter of fiscal 2027.