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    Earnings call· Apr 2026(Q1 FY27)

    SentinelOne Q1 FY27 earnings call S

    May 28, 2026 Source

    Executive summary

    SentinelOne Q1 FY27 — Record Net New ARR and Strong Operating Margin Expansion

    SentinelOne delivered a solid Q1 FY27, marked by record net new ARR and significant operating margin expansion, demonstrating strong execution and business momentum. The company is strategically streamlining its operations and reinvesting in key growth areas like AI, data, and cloud security, while maintaining a strong balance sheet and commitment to durable, profitable growth. Management expressed confidence in balancing growth with continued margin expansion.

    Highlights

    5

    • Total ARR growth accelerated to 23% in Q1 FY27.

    • Net new ARR reached a record $44 million in Q1 FY27, a 55% increase year-over-year.

    • Operating margin improved by approximately 550 basis points year-over-year to 4% in Q1 FY27.

    • Earnings per share increased 83% year-over-year to $0.04 in Q1 FY27.

    • Remaining Performance Obligations (RPO) grew 30% to a record $1.5 billion in Q1 FY27.

    Concerns

    1

    • A workforce optimization initiative impacting approximately 8% of the workforce is expected to incur a one-time restructuring charge of approximately $25 million in Q2 FY27.

    Guidance & targets

    9
    CategoryTargetConfidence
    Full fiscal year 2027 revenue
    $1.195 billion and $1.205 billion
    high materiality
    High
    Q2 fiscal year 2027 revenue
    $289 million and $291 million
    high materiality
    High
    Full fiscal year 2027 operating income
    $115 million and $125 million
    high materiality
    High
    Q2 fiscal year 2027 operating income
    $23 million and $25 million
    medium materiality
    High
    Full fiscal year 2027 diluted earnings per share
    $0.32 and $0.38
    high materiality
    High
    Q2 fiscal year 2027 earnings per share
    $0.06 and $0.08
    medium materiality
    High
    Non-GAAP tax rate
    approximately 17%
    low materiality
    High
    Weighted average diluted share count
    approximately $347 million
    low materiality
    High
    Weighted average diluted share count
    approximately $350 million
    low materiality
    High

    Operational metrics

    7
    Cash, cash equivalents and investments
    $812 million
    Q1 FY27

    As of quarter end, with no debt.

    Restructuring charge
    $25 million
    Q2 FY27

    Expected one-time charge in connection with workforce optimization initiative, excluded from non-GAAP results.

    Annualized cost savings from RIF
    $45 million
    Annual

    Expected once workforce optimization initiative is fully implemented.

    Sales and marketing as percentage of revenue
    39%down from 47% a year ago
    Q1 FY27

    Reflects improved efficiency.

    Non-GAAP tax rate
    17%
    FY27

    Expected for the full fiscal year.

    Weighted average diluted share count
    347 million
    Q2 FY27

    Expected for Q2.

    Weighted average diluted share count
    350 million
    FY27

    Expected for the full fiscal year.

    Industry KPIs

    12
    MetricValueDetails
    Revenue growth$277 millionUSD
    Arr net new arr23%%
    Rpo current rpo$1.5 billionUSD
    Bookings billings$200 millionUSD
    Pricing model mix—
    Large customer cohorts17%%
    Gross retention renewal ratestable
    Multi product platform attachrecord
    Operating FCF margin rule of 404%%
    Ai product adoption monetizationnearly doubled
    Net revenue net dollar retentionabove 110%%
    Headcount internal ai productivity8%%

    Orderbook & backlog

    2
    Total RPO$1.5 billionQ1 FY27

    30% growth

    Remaining Performance Obligations

    SentinelOne Flex TCV$200 millionQ1 FY27

    Total Contract Value (TCV) crossed in 3 quarters since launch.

    Product announcements

    3
    ProductTypeDetails
    Singularity AI Red Teaminglaunch
    Purple AI auto investigationsmilestone
    Wayfinder Frontier AI serviceslaunch

    Deals & partnerships

    7
    Level Bluepartnershipcoming years

    Expansion of partnership announced at RSA, driving strategic consolidation of their endpoint estate onto the Singularity platform and extending reach across their global customer base.

    Google Cloudstrategic alliance

    Expanded strategic alliance to deliver autonomous security at a global scale. SentinelOne won the 2026 Google Cloud Partner of the Year Award.

    AWS Security Hub Extendedintegration

    Singularity platform integration into AWS Security Hub Extended, allowing AWS customers to turn on SentinelOne's AI-powered runtime security directly from their AWS console without new contracts or procurements, using a pay-as-you-go model.

    Anthropicpartnership

    Partnered on the launch of Cloud Security and actively engaged to ensure SentinelOne's role in the ecosystem continues to grow.

    [indiscernible] AIpartnership

    Partnered for early access cyber program, embedding frontier models throughout the platform.

    Project Glasswingparticipation

    SentinelOne is a participating vendor in Project Glasswing, validating its approach to AI security.

    Mandiant, WWT, KPMG, Buzenpartnership

    Lead partner correlation for Wayfinder Frontier AI services, fusing multimodal AI with human intelligence.

    Risks & headwinds

    2
    Workforce optimization initiative and restructuring chargesQ2 FY27

    Approximately 8% reduction in workforce, resulting in a one-time restructuring charge of approximately $25 million.

    Mitigation: Expected to result in approximately $45 million in annualized cost savings, providing financial flexibility to purposefully reinvest in key growth areas (AI, data, cloud, endpoint) and drive significant operating margin expansion.

    Evolving macroeconomic environment and geopolitical uncertaintiesOngoing

    Can influence deal timing and sales cycles across the industry.

    Mitigation: Company maintains a solid pipeline, strategic partnership opportunities, and rising contribution from emerging solutions (AI, data, cloud, etc.). Management remains mindful of the environment.

    Q&A highlights

    8

    Are you seeing a pickup in core endpoint demand, and how do you balance selling the full Singularity portfolio initially versus upselling later?

    Tomer Weingarten stated that endpoint remains the most important control plane, especially with AI, driving strong demand for core endpoint and immediate attach of Prompt Security. He noted that AI workloads are expanding to cloud, which is another strong area for demand.

    “It's clear that the endpoint remains the most important control plane, especially in the age of AI. We're seeing a lot of focus on how to secure agents, how to secure services that could be impacted by the deployment of more and more AI technologies.”

    asked by Meta Marshall · answered by Tomer Weingarten

    2 min read6 chapters

    Detailed Narrative

    01

    AI Security Momentum

    AI security ARR nearly doubled again in Q1 FY27, driven by solutions like Prompt Security. The U.S. state government selected SentinelOne for AI infrastructure security, marking one of the first government deals led by AI security. Additionally, an iconic enterprise chose Prompt Security over an incumbent next-gen endpoint vendor, demonstrating technology superiority and opening doors for broader platform displacement.

    02

    Autonomous SOC with Purple AI

    Purple AI, SentinelOne's agentic SOC solution, is rapidly gaining adoption, with early rollouts showing ARR from Purple AI's end-to-end deployment potentially outgrowing a customer's core endpoint footprint. The general availability of Purple AI auto investigations, delivering human-level reasoning and one-click automation, is empowering customers to respond faster and accelerate detection, leading to a 338% ROI for Purple AI customers according to IDC.

    03

    Data Solutions and AI SIEM Traction

    Data solutions experienced their fourth consecutive quarter of ARR growth acceleration, fueled by increasing demand for AI SIEM. Notable wins include an iconic luxury brand displacing Splunk with a multiyear commitment to SentinelOne's AI SIEM, and a multinational services enterprise signing a 7-figure expansion, replacing their existing SIEM provider due to superior cost of ownership and machine speed investigations. IDC found SentinelOne's AI SIEM delivers a 331% 3-year ROI with a 7-month payback period.

    04

    Cloud Security Expansion and Runtime Protection

    Cloud Security ARR growth accelerated in Q1 FY27, driven by strong adoption of best-of-breed runtime security for both on-prem and cloud environments. One of the world's most valuable private companies significantly expanded its footprint with Singularity Cloud for autonomous AI-powered runtime protection, capable of actively neutralizing AI-based threats across dynamic infrastructure in real time, highlighting the inadequacy of static posture management.

    05

    Strategic Partnerships and Ecosystem Expansion

    SentinelOne expanded its partnership with Level Blue, the world's largest MSSP, for strategic consolidation of their endpoint estate onto the Singularity platform. The company also announced an expanded strategic alliance with Google Cloud, winning the 2026 Google Cloud Partner of the Year Award. Furthermore, integration into AWS Security Hub Extended allows AWS customers to seamlessly adopt SentinelOne's AI-powered runtime security directly from their console with a pay-as-you-go model.

    06

    Workforce Optimization and Efficiency Initiatives

    The company implemented a workforce optimization initiative, resulting in an approximately 8% reduction in its workforce. This strategic move aims to streamline organizational structure, reduce complexity, and enhance agility. The initiative is expected to generate approximately $45 million in annualized cost savings, providing financial flexibility to reinvest in high-conviction growth areas such as AI, data, cloud, and endpoint security.

    AI-generated summary of the company’s earnings call. Not investment advice.