SentinelOne, Inc. (NYSE: S) announced its Q2 fiscal year 2026 financial results on August 28, 2025, reporting a 22% year-over-year revenue increase to $242.2 million and a 24% rise in annualized recurring revenue (ARR) to $1 billion, driven by its AI-powered cybersecurity platform.
Revenue: $242.2 million, up 22% year-over-year, announced August 28, 2025.
ARR: Increased 24% to $1 billion, with record net new ARR.
Customers with ARR ≥ $100,000: Grew 23% to 1,513.
Non-GAAP Operating Margin: Improved to 2% from (3)%.
Cash and Investments: $1.2 billion as of July 31, 2025.
Full-Year Outlook: Raised revenue guidance to $998M–$1.002B, targeting profitability.
SentinelOne reported total revenue of $242.2 million for Q2 FY2026, a 22% increase from $198.9 million in Q2 FY2025. Annualized recurring revenue (ARR) grew 24% to $1 billion, reflecting strong platform adoption across AI, data, cloud, and endpoint security. The company achieved a non-GAAP operating margin of 2%, up from (3)% last year, and a non-GAAP net income margin of 5%, compared to 2%. GAAP gross margin remained steady at 75%, while non-GAAP gross margin was 79%. Cash flow metrics showed an operating cash flow margin of 0% and a free cash flow margin of (3)%, with trailing-twelve-month figures improving to 4% and 2%, respectively. Cash and investments totaled $1.2 billion as of July 31, 2025.
“We surpassed $1 billion in ARR and delivered record net new ARR,” said CEO Tomer Weingarten, emphasizing the company’s leadership in AI-powered cybersecurity. The Singularity Platform’s momentum, enhanced by innovations like Purple AI and the SentinelOne Flex licensing model, drove a 23% increase in customers with ARR ≥ $100,000 to 1,513. Nearly 50% of quarterly bookings came from emerging products, reflecting demand for cloud defense and AI-driven threat detection. CFO Barbara Larson noted, “Our strategic investments and focus on operational excellence position us well to deliver durable growth and sustained profitability,” with the company raising its full-year revenue outlook to $998M–$1.002B.
The cybersecurity market, projected to reach $697 billion by 2035, is driven by rising cybercrime costs and AI adoption. SentinelOne’s Q2 performance, including triple-digit growth in Purple AI attach rates and the acquisition of Prompt Security for AI runtime protection, positions it as a leader amid competition from CrowdStrike and Palo Alto Networks. The company’s focus on scalability and cost efficiency, with a 79% non-GAAP gross margin, supports its edge in a high-growth sector.
SentinelOne expects Q3 FY2026 revenue of $256 million, above analyst estimates of $254.4 million, and reaffirmed its commitment to full-year operating profitability and positive free cash flow. Risks include competition, rapid technological changes, and cybersecurity incidents, as noted in SEC filings.
SentinelOne (NYSE: S) is a global leader in AI-powered cybersecurity, offering the Singularity Platform to secure endpoints, cloud workloads, and data. With innovations like Purple AI and SentinelOne Flex, the company serves enterprises worldwide, driving high growth and operational efficiency.
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