S Q1 2026 Earnings

Call Details

• Call Title: SentinelOne Q1 2026 Earnings Call
• Date: May 28, 2025 8:30 PM UTC
• Management Team:
  • Tomer Weingarten (Chief Executive Officer)
  • Barbara Larson (Chief Financial Officer)
  • Doug Clark (Vice President, Investor Relations)

Call Summary

Financial Performance

• Revenue was $229 million, up 23% year-over-year on a non-GAAP basis.
• Total ARR grew 24% to $948 million compared to the prior year period.
• Gross margin in Q1 was 79% and operating margin expanded by over 4 percentage points year-over-year to negative 2% on a non-GAAP basis.
• Free cash flow margin was 20% for the quarter, which the company described as a record.
• Cash, cash equivalents, and investments increased to $1.2 billion at quarter end.
• Remaining performance obligations grew 33% to $1.2 billion sequentially year-over-year.
• The company reported its fourth consecutive quarter of positive net income on a non-GAAP basis.

Guidance

• Q2 revenue is expected to be approximately $242 million, representing 22% year-over-year growth.
• Full-year fiscal 2026 revenue is guided to $996 million to $1.1 billion, representing approximately 22% growth.
• Q2 gross margin is expected to remain at approximately 79%, with full-year gross margin guided to 78.5% to 79.5%.
• Q2 operating margin is expected to be breakeven, implying roughly a 300 basis point year-over-year improvement.
• Full-year operating margin is reiterated at positive 3% to 4%, which management said is an improvement of over 650 basis points at the midpoint versus fiscal 2025.
• The company expects free cash flow margin for the full year to exceed operating margin by several percentage points.
• Guidance reflects Q1 results and the potential impact of macro uncertainty, with the company citing improvement in May but taking a measured stance.