SentinelOne reported fourth‑quarter revenue of $271.2 million, a 20% year‑over‑year increase from $225.5 million in the same period a year earlier. Non‑GAAP earnings per share rose to $0.07, beating the consensus estimate of $0.06 by $0.01 and representing a 140% beat over the prior quarter’s $0.04 EPS. The earnings beat was driven by disciplined cost management and a higher mix of high‑margin AI‑native contracts, which offset modest increases in support and professional services costs.
The company’s annual recurring revenue grew 22% year‑over‑year to $1.12 billion, surpassing the $1 billion milestone that had been a key target for the business. Non‑GAAP operating margin expanded to 6% in the quarter, up from 1% in Q4 FY2025, and the full‑year operating margin reached 3% from –3% in FY2025, reflecting improved pricing power and economies of scale in the Singularity platform.
Revenue growth was largely driven by the Singularity platform and Purple AI. Purple AI achieved an attach rate of over 50% on licenses sold in Q4, a record for the product line, while Singularity continued to capture new enterprise customers and expand within existing accounts. The strong demand for these AI‑native solutions helped lift the overall mix toward higher‑margin offerings.
Management guided for Q1 FY2027 revenue of $276 million to $278 million and adjusted EPS of 1 cent to 2 cents, slightly below consensus estimates. Full‑year FY2027 revenue guidance was $1.195 billion to $1.205 billion, and adjusted EPS guidance was $0.32 to $0.38. The guidance signals confidence in continued demand for the platform but also reflects caution about macro‑economic headwinds that could slow deal cycles.
Investors reacted cautiously to the guidance, noting that while the company beat earnings and revenue expectations, the forward outlook was modest and did not fully offset concerns about slowing growth and competitive pressure. The market’s tempered response highlights the importance of the guidance relative to analyst expectations.
"We surpassed the $1 billion revenue milestone, growing 22% year‑over‑year, and achieved full‑year operating profitability – a strong close to fiscal year '26," said CEO Tomer Weingarten. "Businesses of all sizes, including the world's largest enterprises, are standardizing on the Singularity platform as the foundation for securing AI and autonomous cybersecurity," he added. CFO Barry Padgett noted, "We delivered solid ARR growth and achieved new profitability milestones – demonstrating consistent execution and operating leverage in the business." Padgett also said, "We are successfully balancing topline growth with greater operational rigor, ensuring we remain firmly on track to deliver sustainable, profitable growth at scale."
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.