Earnings Recap — Q2 FY2027
CY Q3 2026 · Reported August 27, 2026 · Beat 6 of last 7 quarters
SentinelOne, Inc. reported Q2 FY2027 revenue of $292M, a beat of 0.6% against consensus, and EPS of $0.08, a beat of 12.0%.
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SentinelOne's results frame runtime security as a gating requirement for enterprise AI adoption, with AI security ARR tripling YoY and data and cloud ARR accelerating for a fifth and third consecutive quarter respectively. Management tied demand directly to the AI infrastructure build-out, saying expanding cloud footprints and multiplying AI workloads make real-time runtime protection an imperative, and that securing AI requires visibility at the point of execution across endpoints, cloud workloads and underlying infrastructure. Its air-gapped and on-premises deployment capability positions it for sovereign AI stacks where telemetry cannot leave the data center or AI factory.
SentinelOne reported Q2 FY27 revenue of $292M, up 21% YoY and above the top end of guidance, with total ARR up 22% and a record second-quarter net new ARR of $56M, up 4% YoY. The company delivered a record 10% operating margin, 820 bps of YoY expansion, and EPS of $0.08, double YoY. RPO reached a record $1.7B, up 45% YoY, with larger lands, 7- and 8-figure deals, and longer contract durations cited as drivers. Data posted its fifth consecutive quarter of ARR growth acceleration, cloud its third, and AI security ARR (Prompt Security plus Purple AI) tripled YoY, with Prompt Security the fastest-growing platform solution. The company ended the quarter with $813M in cash, cash equivalents and investments and no debt, and said SentinelOne Flex exceeded 10% of total ARR within a year of launch.
Management raised its full-year FY27 revenue outlook to $1.202B-$1.207B (20% YoY growth at the midpoint) and raised its operating income outlook to $124M-$128M, implying roughly 10% operating margin at the midpoint, about 700 bps above FY26. For Q3, they guided revenue of $309M-$311M (20% YoY at the midpoint) and operating income of $38M-$40M, roughly 13% operating margin at the midpoint, with EPS of $0.08-$0.09. The CFO said margins will keep expanding in Q3 and Q4 but not at the same rate as the first half, deliberately leaving cushion to reinvest in AI security, data, cloud and go-to-market motions. Management said it expects full-year net new ARR to grow YoY but does not guide that metric specifically, and it framed the AI-driven 'Mythos moment' as a structural tailwind that plays out over multiple quarters and years rather than immediately. Tomer Weingarten said the company is 'one of the only platforms' leading with an autonomous mode of operation and that the opportunity in AI security is 'unbounded,' with record pipeline for AI security and Purple AI.
“Q2 marks our fifth consecutive quarter of positive net new ARR growth and outperforming expectations. These results reflect what increasingly defines SentinelOne: top-tier growth, expanding margins and undisputed technology leadership.”
on Momentum and positioning
“ARR from our AI security offerings, Prompt and Purple AI, continues to be in hyper growth, tripling year-over-year in Q2. We expect this to become our next 9-figure ARR category, following endpoint, Cloud, Data and Wayfinder.”
on AI security ARR
“We don't really see growth and margin expansion as a trade-off from where we sit today, just given the inherent operating leverage in the platform strategy.”
on Growth vs. margin
Is advanced AI preparedness more of an accelerant for the core endpoint business or for newer areas like data, AI and cloud, and is it starting with enterprise customers and flowing down to mid-market, or the reverse?
Tomer Weingarten said the impact is broad-based, spanning endpoint visibility into AI workloads, faster data ingestion and response, cloud workload security, and AI security products like Prompt and Purple AI. He said SentinelOne is essentially the only option for a broad autonomous platform deployable from air-gapped to cloud-native environments, and that demand spans enterprise, mid-market, SMB, federal and SLED, with MSSP partners scaling distribution. Sonalee Parekh added that modern endpoint is the largest installed base but Data, AI and Cloud are seeing significant mix shift and strong acceleration off a smaller base.
How is the sales force developing playbooks to sell a rapidly expanding product portfolio without elongating sales cycles, and how is the CFO balancing continued leverage with growth opportunities?
Weingarten said the approach is meeting customers where they are, with Prompt Security often the entry point and derivative platform needs following, and that sales cycles are compressing with larger and longer contracts. Parekh said growth and margin expansion are not a trade-off given the platform's operating leverage, that organizational complexity removed in prior quarters was redeployed to highest-conviction areas, and pointed to 22% first-half net new ARR growth alongside 800-plus bps of operating margin expansion and raised revenue and operating income outlooks.
Given the strong first half and positive environment, why isn't the full-year net new ARR guardrail of low-to-mid-single-digit growth being raised, and how should investors reconcile that with the strength discussed?
Parekh pointed to accelerating emerging products, a net retention trend that has now persisted for several quarters, a solid pipeline, larger lands, and compressed deal cycle times as the basis for confidence. She noted the revenue guide was raised by more than the quarterly beat and reiterated that SentinelOne still expects full-year net new ARR to grow YoY, with first-half net new ARR up 22% YoY versus internal targets.