SentinelOne, Inc.

Q2 FY27 revenue was $292 million, up 21% year over year and above the top end of guidance. Total ARR grew 22%, record Q2 net new ARR was $56 million, and EPS was $0.08, which management said doubled year over year. Gross margin was not explicitly stated in the call. Operating margin reached a record 10%, up 820 basis points year over year, and trailing 12-month adjusted free cash flow margin was 6%, up roughly 400 basis points year over year. Total RPO reached a record $1.7 billion and grew 45% year over year. For Q3 FY27, revenue guidance is $309 million to $311 million, operating income is $38 million to $40 million, and EPS is $0.08 to $0.09. For full-year FY27, revenue guidance was raised to $1.202 billion to $1.207 billion and operating income to $124 million to $128 million; full-year EPS is expected to be $0.30 to $0.32.

Tomer Weingarten framed the quarter as validation of SentinelOne’s AI-native platform strategy, saying the company is winning larger platform deals across endpoint, cloud, data and AI security. He emphasized that runtime protection, autonomous security and a unified architecture are becoming more important as AI changes the threat landscape, and he argued SentinelOne is well positioned because it can be deployed across cloud, on-prem and air-gapped environments. His tone was highly confident and expansive, repeatedly saying the AI security opportunity is still early and broad-based.

Sonalee Parekh highlighted the financial discipline behind the quarter: revenue of $292 million, ARR up 22%, record net new ARR of $56 million, and record operating margin of 10%. She pointed to sales and marketing expense falling to 34% of revenue, a 900-plus basis point improvement, and said adjusted free cash flow margin on a trailing 12-month basis reached 6%. She also noted $813 million in cash, cash equivalents and investments with no debt, and said capital allocation will remain measured, balancing organic and inorganic investment with opportunistic buybacks. On guidance, she raised FY27 revenue to $1.202 billion-$1.207 billion and operating income to $124 million-$128 million, while maintaining a roughly 17% non-GAAP tax rate and expected diluted share count of about 370 million for Q3 and 361 million for the full year.

Analysts focused on whether AI preparedness is mainly helping endpoint or newer categories, and management said the impact is broad-based but especially strong in data, cloud, Prompt Security and Purple AI. Questions also centered on whether growth and margin expansion can continue together; management said they do not see a trade-off and cited improving sales efficiency, larger deal sizes and better retention. On net new ARR, management said they still expect year-over-year growth for the full year, while declining to change the company’s non-guided guardrail. They also said RPO growth is being driven by larger deals and longer contracts, including 7- and 8-figure commitments, and that sovereign AI security is a structural opportunity because SentinelOne can be deployed fully on-prem or in air-gapped environments.