SentinelOne Reports Q2 2027 Results: Full Earnings Call Transcript

SentinelOne (NYSE: S ) reported second-quarter financial results on Thursday. The transcript from the company's second-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

View the webcast at Summary SentinelOne reported a strong Q2 FY27 with revenue growth of 21% year-over-year to $292 million, exceeding top-end guidance. The company achieved record second-quarter net new ARR and operating margin, prompting an increase in its full fiscal year 2027 revenue and operating income outlook. Strategic wins included significant consolidation deals and displacements of legacy vendors, particularly in the aerospace and defense sectors. SentinelOne emphasized its AI-native cybersecurity platform, Singularity, highlighting its competitive edge in AI security, data, and cloud solutions.

ARR from AI security offerings tripled year-over-year, with strong contributions from Purple AI and Prompt Security. 7 billion, driven by larger lands and increased contract duration. Management highlighted a focus on AI security and sovereign deployment capabilities as key growth drivers, with significant upmarket wins and expansion in the MSSP ecosystem. 207 billion and an operating margin of approximately 10%.

Full Transcript Tomer Weingarten, CEO transforms from a protective safeguard into an essential enabler of enterprise AI. SentinelOne is uniquely positioned at the center of AI data and cybersecurity. Security is no longer just a defensive measure, it is a key strategic enabler of AI innovation. With a strong financial foundation, a leading cybersecurity platform, and significant market tailwinds, we remain focused on creating outsized shareholder value and with that operator we are ready for questions.

OPERATOR (Operator) Thank you. At this time, if you would like to ask a question, please click on the Raise hand button which can be found on the black bar and click at the bottom of your screen. When it is your turn, you will receive a message on your screen based on your place in the queue. Please accept unmute your audio and ask a question.

As a reminder, we are allowing analysts one question today. We will wait one moment to allow the queue to form. Hello and welcome to the SentinelOne Q2 FY 2027 earnings conference call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session.

Also, as a reminder, this conference is being recorded today. If you have any objection, please disconnect your call. I will now turn the call over to Saad Nazeer, Vice President of Investor Relations. Saad Nazeer, Vice President of Investor Relations Good afternoon everyone and welcome to SentinelOne's earnings call for the second quarter of fiscal year 2027 which ended July 31, 2026.

With us today are Tomer Weingarten, CEO and Sonalee Parekh, CFO. Our press release and earnings presentation were issued earlier today and are posted on the Investor Relations section of our website. This call and accompanying slides are being broadcast live via webcast and a replay will be available on our website after the call. Before we begin, I would like to remind you that during today's call we will be making forward-looking statements about financial performance and future events, including our guidance for fiscal third quarter and full fiscal year 2027, as well as long-term financial targets.

We caution you that such statements reflect our best judgment based on factors currently known to us and that our actual results or events could differ materially. Please refer to the documents we file from time to time with the SEC, in particular our quarterly reports on Form 10-Q and annual report on Form 10-K. These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements. Any forward-looking statements made during this call are being made as of today.

If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information except as required by law. We assume no obligation to update these forward-looking statements publicly or to update the reasons why actual results may differ materially from those anticipated even if new information becomes available in the future. During this call we will discuss non-GAAP financial measures and all comparisons made are year over year, unless otherwise noted. Those non-GAAP financial measures are not prepared in accordance with Generally Accepted Accounting Principles.

A reconciliation of GAAP and non-GAAP results, other than with respect to our non-GAAP financial outlook, is provided in today's press release and in our earnings presentation. These non-GAAP measures are not intended to be a substitute for our GAAP results. Our financial outlook excludes stock-based compensation expenses, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, acquisition-related compensation costs, restructuring charges, gains on strategic investments and income tax provision, which cannot be determined at this time and are therefore not reconciled in today's press release.

And with that, let me turn the call over to Tomer Weingarten, CEO of SentinelOne. Tomer Weingarten, CEO Good afternoon everyone, and thank you for joining our second quarter earnings call. Q2 was an outstanding quarter for SentinelOne. We exceeded our top and bottom line guidance, delivered record second quarter net new ARR, and record operating margin.

Building on this momentum, we are raising our revenue and operating income outlook for the year. Q2 marks our fifth consecutive quarter of positive net new ARR growth and outperforming expectations. These results reflect what increasingly defines SentinelOne: top-tier growth, expanding margins, and undisputed technology leadership. Cybersecurity is at a fork in the road.

AI is transforming the way software is built, businesses operate, and adversaries attack. The speed, scale, and sophistication of AI models are making the threat landscape increasingly complex. At the same time, AI also gives defenders the power to transform security outcomes through accelerated response times and unmatched efficiency. The approach of bundling fragmented products or marketing disjointed platforms is not the answer.

The strategy repackages complexity; it doesn't remove it. Enterprises today do not need another point solution, a feature product, or a bigger bundle. They need real-time connected intelligence that operates at machine speed. This requires a unified architecture, a single control plane purpose-built to defend the modern infrastructure in the age of AI.

This is the vision. We founded SentinelOne on an AI-native approach to cybersecurity long before the moment. Singularity is the autonomous security platform of the future. Our technology differentiation lies in a clear architectural advantage.

Every platform solution we offer, from Endpoint, Cloud, and Data to AI SOC, AIDR, and ADR, is a best-in-class capability on its own, unified by our industry-leading autonomous runtime engine and delivered via a single pane of glass at machine speed. Runtime protection is fundamental to our platform architecture and our AI security. Growth and contribution already indicate we are leading in this fast-moving category.

This quarter provided clear validation across four fronts for SentinelOne: 1) market-leading wins with the world's most discerning organizations, 2) growth acceleration of our AI security, data, and cloud solutions, 3) sustained displacements of legacy endpoint vendors, and 4) our distinct architectural advantage in securing modern AI infrastructure. First, let's start with how the most discerning buyers in the world are choosing SentinelOne. Our competitive win rates increased sequentially and year over year, anchored by growing platform momentum and consolidation wins. Net revenue retention among our largest customers expanded again in the quarter.

Seven- and eight-figure customer wins are becoming consistent, and cross-platform adoption drove a record ARR per customer, growing double digits year over year. Enterprises are increasingly consolidating multiple point products with the Singularity platform. The clearest example: a leading aerospace and defense enterprise chose Singularity to execute a complete rip-and-replace of our primary competitor, consolidating Endpoint, Data, Cloud, as well as AI security with SentinelOne. And our AI security capabilities widened the gap, as the competitive alternative was not good enough to help this enterprise accelerate AI adoption.

Facing sophisticated nation-state threats, this customer had extremely stringent security requirements. During an intensive proof of concept, SentinelOne delivered a step-change improvement in analyst workflows and security efficacy over the incumbent. Second, we are seeing strong contributions across the board from our AI, Data, Cloud, Wayfinder, and Endpoint solutions. We had another exceptional quarter for Prompt Security, which remains our fastest-growing platform solution.

As organizations move AI models and autonomous agents into live production, robust security is mandatory. We are capturing this wave, driving strong demand across model security, agentic guardrails, and enterprise AI usage. Prompt Security is leading this category as the definitive AI security solution for the enterprise. Demonstrating this momentum, Bell Canada selected Prompt Security to secure one of the nation's most critical networks.

They required real-time visibility, automated guardrails, and strict compliance for their workforce, and SentinelOne delivered it. This win validates that enterprise-grade AI security is a prerequisite for safe AI adoption, and our momentum in this category continues to accelerate. The telecom sector continues to be an area of competitive edge for us. We protect operators across five continents, including several of the largest carriers in their respective markets.

These are among the most demanding security environments anywhere: massive distributed infrastructure, persistent nation-state threat exposure, and stringent regulatory requirements. Our scale and expansion in that environment demonstrate the breadth and the resiliency of the Singularity platform. We continue to win standalone AI security deals from our direct competitors. This is serving as a strategic entry point for broader platform expansion.

As AI adoption scales, enterprises are confronting an unprecedented threat landscape. They need to protect AI tools and sensitive data while enforcing strict runtime controls over autonomous agents. Our increasing AI security innovations address these challenges, now offering agentic security, AI red teaming capabilities, and enhanced AI entitlement management. This is enabling enterprises to adopt AI rapidly without compromising security, privacy, or trust.

Building upon our technology leadership in EDR, we are on track to establish similar leadership in agentic as well as AI detection and response. Next, Purple AI continues to redefine the AI SOC, serving as our core engine for autonomous security operations. An increasing number of new customers are landing with Purple AI from day one, while our existing customer base continues to expand its usage with our recently launched AgentIQ investigations. Purple AI autonomously analyzes alerts across complex environments, producing definitive assessments in seconds rather than hours.

IDC independently validated a 338% three-year ROI for Purple AI customers. Purple AI's accuracy relative to human-led workflows further underscores its disruptive potential as security operations evolve towards continuous agentic defense with human oversight. SentinelOne sits at the forefront of this paradigm shift. By continuously advancing Purple AI, we empower customers to accelerate detection, automate investigations, and execute remediation at machine speed.

ARR from our AI security offerings—Prompt and Purple AI—continues to be in hypergrowth, tripling year over year in Q2. We expect this to become our next nine-figure ARR category, following Endpoint, Cloud, Data, and Wayfinder. This momentum highlights our technology differentiation and market leadership in defining the next generation of AI cybersecurity. For Data solutions, Q2 marked our fifth consecutive quarter of ARR growth acceleration.

We believe the future SOC will be hybrid. Enterprises will continue to operate across diverse security tools and data sources while increasingly adopting AI-driven investigation and automation. Our security data lake is built for that transition. From intelligent data pipelines and AI SIEM to Purple AI and hyper-automation, we help customers consolidate and optimize security data and turn it into faster detection, investigation, and response.

From pipeline to SIEM to autonomous SOC, SentinelOne covers the full security data lifecycle. This is evident in our accelerating momentum with AI SIEM. Among new customer wins, a global services firm selected SentinelOne's AI SIEM over both legacy and next-gen alternatives to unify telemetry, improve operational visibility, and accelerate incident response. By establishing the Singularity platform as their centralized security data foundation, the customer unlocked petabyte-scale telemetry control and laid the groundwork for AI-driven automation.

Demonstrating our expansion momentum, a major international retailer expanded its deployment with SentinelOne. This win fully displaces a legacy endpoint vendor while expanding this customer's data footprint. By unifying endpoint protection and security data analytics on the Singularity platform, this customer is establishing a foundation to scale their data volumes by several terabytes in future phases. External validation continues to highlight our competitive edge.

According to an IDC business value study, SentinelOne's AI SIEM delivers a 331% three-year ROI, 70% faster queries, 75% faster investigations, and four times the threat coverage. For Cloud security, Q2 marked the third consecutive quarter of ARR growth acceleration. This momentum is driven by strong adoption of our best-in-breed runtime cloud security covering both cloud and on-prem environments. The massive AI infrastructure buildout is driving accelerated demand for us, making real-time runtime protection an absolute imperative as enterprise cloud footprints expand and AI workloads multiply.

Among cloud security wins, a major American tech giant significantly expanded its SentinelOne deployment, choosing Singularity Cloud over a close competitor. The customer cited our superior platform performance and operational ease of use as the decisive factors. As their cloud infrastructure rapidly scales, this expanded partnership creates a natural compounding growth opportunity for Singularity across their environment. Among new customer wins, a leading global financial institution standardized on the Singularity platform following a rigorous competitive evaluation against both legacy incumbents and next-gen contenders.

Given strict regulatory requirements and the operational complexity of a distributed cloud environment, this enterprise selected SentinelOne for a unified, autonomous cloud security. Modern cloud environments are dynamic, distributed, and directly connected to mission-critical AI workflows. Static posture management and periodic vulnerability scans are simply not enough. Organizations need runtime cloud security to detect and neutralize active threats at execution.

Underscoring our cloud security leadership, Frost & Sullivan named SentinelOne a visionary leader in its 2026 Frost Radar for cloud workload protection platforms, recognizing our innovation and growth against the field of more than 45 qualified vendors. Third, we continue to grow our Endpoint footprint, particularly through large-scale consolidation deals. Through our strategic partnerships with MSSPs, we are consolidating multiple incumbent endpoint estates onto the Singularity platform. Singularity Endpoint delivers the most autonomous EDR technology, which combines industry-leading efficacy, performance, and user experience.

The secular shift towards infrastructure modernization continues to provide a powerful long-term tailwind. Nearly half of the sector still relies on legacy antivirus, creating a massive displacement opportunity. This transition is backed by proven economic value, with IDC research demonstrating that Singularity Endpoint delivers a 301% three-year ROI. Highlighting traction for endpoint security, a major government agency administering national public services standardized on Singularity EDR.

This agency selected SentinelOne following a rigorous evaluation that demonstrated our platform's real-time speed, autonomous response, and superior total cost of ownership, validated by existing reference deployments across major public institutions. This win underscores our trusted position in securing mission-critical government infrastructure. Fourth, we have a distinct architectural advantage in securing the modern AI infrastructure. As AI agents gain autonomy, real-time runtime security becomes paramount.

Behavioral detection and continuous validation at machine speed are essential to intercept unauthorized actions before harm occurs. Governance defines what an AI agent is permitted to do, but runtime is where the actions are executed.