SentinelOne (NYSE:S) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

SentinelOne (NYSE:S) issued its earnings results on Thursday. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.02, FiscalAI reports. The company had revenue of $276.66 million for the quarter, compared to the consensus estimate of $277.32 million. SentinelOne had a negative return on equity of 15.04% and a negative net margin of 45.02%.The firm’s quarterly revenue was up 20.8% on a year-over-year basis. During the same quarter last year, the company earned $0.02 EPS. SentinelOne updated its Q2 2027 guidance to 0.060-0.080 EPS and its FY 2027 guidance to 0.320-0.380 EPS.

Here are the key takeaways from SentinelOne’s conference call:

• SentinelOne said Q1 revenue rose 21% to $277 million, while total ARR growth accelerated to 23% and net new ARR hit a record $44 million, up 55% year over year.
• The company highlighted strong momentum in its platform businesses, with non-endpoint solutions approaching 50% of total ARR for the first time, led by AI security, data, and cloud offerings. Management said AI security ARR nearly doubled again in the quarter.
• Profitability improved meaningfully as operating margin reached 4%, up about 550 basis points year over year, and adjusted free cash flow margin improved to 6.5% on a trailing 12-month basis. The company also raised its full-year operating income outlook.
• SentinelOne announced an approximately 8% workforce reduction, saying the move is intended to simplify the organization, improve sales productivity, and reinvest savings into AI, data, cloud, and endpoint priorities. Management expects about $25 million in one-time restructuring charges and $45 million in annualized cost savings.
• Guidance remained constructive: fiscal 2027 revenue is still expected at $1.195 billion to $1.205 billion, or about 20% growth at the midpoint, while full-year operating income guidance was raised to $115 million to $125 million. The company also ended Q1 with $812 million in cash and no debt.

SentinelOne Stock Performance

NYSE S opened at $17.96 on Friday. The company has a market cap of $6.11 billion, a P/E ratio of -13.21 and a beta of 0.78. The business’s 50 day moving average price is $14.91 and its 200-day moving average price is $14.74. SentinelOne has a fifty-two week low of $11.81 and a fifty-two week high of $21.40.

Wall Street Analysts Forecast Growth

S has been the topic of several recent analyst reports. Guggenheim reissued a “buy” rating and set a $24.00 target price on shares of SentinelOne in a research note on Friday, March 13th. Morgan Stanley decreased their target price on SentinelOne from $18.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Friday, March 13th. Wedbush reissued an “outperform” rating and set a $20.00 target price on shares of SentinelOne in a research note on Friday, March 13th. JPMorgan Chase & Co. lifted their target price on SentinelOne from $16.00 to $20.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, Barclays lifted their target price on SentinelOne from $16.00 to $19.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 20th. Fifteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $19.59.

Key Headlines Impacting SentinelOne

Here are the key news stories impacting SentinelOne this week:

• Positive Sentiment: SentinelOne posted Q1 EPS of $0.04, topping estimates, and revenue growth accelerated to 21% with ARR up 23%, showing continued demand for its cybersecurity platform.
• Positive Sentiment: The company announced strong strategic progress, including record net new ARR growth and a Gartner Magic Quadrant Leader designation for endpoint protection for the sixth straight year, reinforcing its competitive position. Article: SentinelOne Named a Leader in the Gartner Magic Quadrant for Endpoint Protection Platforms for 6th Consecutive Year
• Neutral Sentiment: Management raised full-year non-GAAP operating income guidance and said it is investing more heavily in AI, data, and cloud initiatives, which could support longer-term growth but also reflects ongoing restructuring efforts.
• Neutral Sentiment: JPMorgan raised its price target to $20 from $16 while keeping a neutral rating, suggesting Wall Street sees some upside but remains cautious on the stock.
• Negative Sentiment: Second-quarter revenue guidance came in below consensus, and full-year EPS guidance was only roughly in line, disappointing investors who wanted a clearer beat-and-raise story. Article: SentinelOne provides tepid quarterly forecast, to cut 8% jobs
• Negative Sentiment: The company also announced an about 8% workforce reduction, which investors interpreted as a sign that cost discipline and margin improvement are still a work in progress.

Insider Buying and Selling

In other news, insider Ana G. Pinczuk sold 32,396 shares of the business’s stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $13.37, for a total transaction of $433,134.52. Following the transaction, the insider owned 603,650 shares of the company’s stock, valued at approximately $8,070,800.50. The trade was a 5.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Barry L. Padgett sold 32,221 shares of the business’s stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $13.37, for a total value of $430,794.77. Following the transaction, the chief financial officer directly owned 643,650 shares in the company, valued at approximately $8,605,600.50. This represents a 4.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 527,586 shares of company stock worth $7,638,793. 4.27% of the stock is owned by company insiders.

Hedge Funds Weigh In On SentinelOne

A number of large investors have recently bought and sold shares of the business. Pacer Advisors Inc. boosted its holdings in SentinelOne by 78.6% during the 4th quarter. Pacer Advisors Inc. now owns 31,653 shares of the company’s stock valued at $475,000 after acquiring an additional 13,931 shares during the period. Sunbelt Securities Inc. boosted its holdings in SentinelOne by 50.3% during the 4th quarter. Sunbelt Securities Inc. now owns 23,615 shares of the company’s stock valued at $354,000 after acquiring an additional 7,898 shares during the period. Compound Planning Inc. purchased a new position in SentinelOne during the 4th quarter valued at $167,000. Invesco Ltd. boosted its holdings in SentinelOne by 12.1% during the 4th quarter. Invesco Ltd. now owns 401,396 shares of the company’s stock valued at $6,021,000 after acquiring an additional 43,241 shares during the period. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in SentinelOne by 97.5% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 113,021 shares of the company’s stock valued at $1,680,000 after acquiring an additional 55,798 shares during the period. Hedge funds and other institutional investors own 90.87% of the company’s stock.

About SentinelOne

SentinelOne, Inc is a cybersecurity company specializing in AI-driven, autonomous endpoint protection. Founded in 2013 and headquartered in Mountain View, California, the firm developed its Singularity Platform to unify prevention, detection, response, and hunting across endpoints, cloud workloads, containers and IoT devices. SentinelOne’s solutions leverage machine learning and behavioral analytics to identify threats in real time, automate remediation workflows and deliver forensics to support rapid incident response.

The company’s flagship product suite includes endpoint security agents, cloud workload protection, identity threat detection and extended detection and response (XDR) capabilities.