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

SentinelOne (NYSE:S) issued its quarterly earnings results on Thursday. The company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of $0.02 by $0.02, FiscalAI reports. SentinelOne had a negative return on equity of 15.20% and a negative net margin of 30.39%.The company had revenue of $276.66 million for the quarter, compared to analyst estimates of $277.32 million. During the same period in the previous year, the company posted $0.02 earnings per share. The company’s quarterly revenue was up 20.8% compared to the same quarter last year. 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 Down 8.6%

Shares of NYSE S opened at $16.47 on Friday. The business’s 50 day moving average price is $14.95 and its two-hundred day moving average price is $14.76. The company has a market cap of $5.61 billion, a PE ratio of -17.16 and a beta of 0.78. SentinelOne has a twelve month low of $11.81 and a twelve month high of $21.40.

Insider Transactions at SentinelOne

In other news, CEO Tomer Weingarten sold 231,664 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $15.32, for a total value of $3,549,092.48. Following the transaction, the chief executive officer owned 2,012,771 shares of the company’s stock, valued at approximately $30,835,651.72. This represents a 10.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Barry L. Padgett sold 32,221 shares of the company’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 completion of the transaction, the chief financial officer directly owned 643,650 shares in the company, valued at $8,605,600.50. The trade was a 4.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 527,586 shares of company stock worth $7,638,793 over the last three months. Company insiders own 4.27% of the company’s stock.

Hedge Funds Weigh In On SentinelOne

Several institutional investors and hedge funds have recently made changes to their positions in the company. Pacer Advisors Inc. boosted its stake in shares of SentinelOne by 78.6% in the fourth quarter. Pacer Advisors Inc. now owns 31,653 shares of the company’s stock valued at $475,000 after buying an additional 13,931 shares during the period. Sunbelt Securities Inc. boosted its stake in shares of SentinelOne by 50.3% in the fourth quarter. Sunbelt Securities Inc. now owns 23,615 shares of the company’s stock valued at $354,000 after buying an additional 7,898 shares during the period. Compound Planning Inc. bought a new stake in shares of SentinelOne in the fourth quarter valued at approximately $167,000. Invesco Ltd. boosted its stake in shares of SentinelOne by 12.1% in the fourth quarter. Invesco Ltd. now owns 401,396 shares of the company’s stock valued at $6,021,000 after buying an additional 43,241 shares during the period. Finally, Mercer Global Advisors Inc. ADV boosted its stake in shares of SentinelOne by 97.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 113,021 shares of the company’s stock valued at $1,680,000 after buying an additional 55,798 shares during the period. Institutional investors and hedge funds own 90.87% of the company’s stock.

More SentinelOne News

Here are the key news stories impacting SentinelOne this week:

• Positive Sentiment: SentinelOne beat quarterly EPS estimates, posted 21% year-over-year revenue growth, and raised FY2027 operating income guidance, showing continued progress toward profitability. SentinelOne (S) Q1 Earnings Top Estimates
• Positive Sentiment: Several analysts raised price targets or reiterated bullish ratings, including Canaccord, Needham, Wedbush, Rosenblatt, JPMorgan, and Bank of America, which may help support sentiment. Analyst rating updates
• Positive Sentiment: Some commentary argues the selloff may be overdone, pointing to strong ARR growth, improving margins, and a large cash balance. SentinelOne: Irrational Penalty Box
• Neutral Sentiment: SentinelOne’s AI-driven cybersecurity strategy remains a key long-term theme, but investors are still evaluating how quickly that investment can translate into sustained growth. SentinelOne: No SaaSpocalypse Doesn’t Make It A Buy
• Neutral Sentiment: The company’s earnings call and related coverage highlighted improving efficiency, but also ongoing competition in cybersecurity and only modest acceleration in growth. SentinelOne Narrows 1Q Loss with Surge in Revenue
• Negative Sentiment: Second-quarter revenue guidance came in below Wall Street expectations, which is the main reason the stock is under pressure today. SentinelOne provides tepid quarterly forecast, to cut 8% jobs
• Negative Sentiment: Management also announced an 8% workforce reduction, signaling cost-cutting and adding to concerns about near-term execution and margin quality. SentinelOne stock drops 12% as cyber firm trims headcount to boost AI investments
• Negative Sentiment: Some analysts and commentators remain cautious, citing competitive pressure, slower customer growth, and concern that the business is not yet showing strong enough top-line momentum. SentinelOne: No SaaSpocalypse Doesn’t Make It A Buy

Wall Street Analyst Weigh In

S has been the topic of several analyst reports. Wells Fargo & Company upped their target price on SentinelOne from $14.00 to $16.00 and gave the stock an “equal weight” rating in a report on Thursday, May 21st. Stephens dropped their target price on SentinelOne from $20.00 to $18.00 and set an “overweight” rating on the stock in a report on Friday, March 13th. Wolfe Research set a $20.00 price target on SentinelOne in a research report on Friday. Citigroup raised SentinelOne from a “neutral” rating to a “buy” rating in a research report on Friday. Finally, Morgan Stanley lowered their price target on SentinelOne from $18.00 to $17.00 and set an “equal weight” rating on the stock in a research report on Friday, March 13th. Seventeen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $19.67.

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.