SentinelOne trims FY27 profit outlook as analysts raise targets after revenue beat

  • SentinelOne reported fiscal second-quarter results that exceeded revenue and adjusted EPS expectations.
  • Annual recurring revenue rose 22% to $1.218 billion, while customers above $100,000 ARR reached 1,715.
  • SentinelOne raised fiscal 2027 revenue guidance but lowered adjusted EPS guidance to $0.30-$0.32.

SentinelOne Inc. reported fiscal second-quarter revenue growth of 21% year over year, with revenue of about $292 million exceeding expectations and adjusted earnings per share of $0.08 topping the $0.07 consensus estimate. Annual recurring revenue rose 22% to $1.218 billion as of July 31, including $56 million in net new ARR, while customers generating at least $100,000 in ARR increased 13% to 1,715. Non-endpoint offerings, including cloud security, data protection and AI-powered products, accounted for more than half of total ARR. SentinelOne raised its fiscal 2027 revenue forecast to $1.205 billion-$1.207 billion but cut adjusted EPS guidance to $0.30-$0.32 from $0.32-$0.38, below the $0.35 consensus. Third-quarter revenue guidance of $309 million-$311 million was broadly in line with estimates, while adjusted EPS guidance of $0.08-$0.09 trailed expectations of $0.11. Shares fell 2.3% to $22.20 in premarket trading after the announcement before later reversing higher during the session. Needham's Mike Cikos raised his price target to $26 from $20 and kept a Buy rating, while Citizens' Rustam Kanga lifted his target to $25 from $23 and maintained Market Outperform. Bernstein and UBS also raised targets, while J.P. Morgan retained a Neutral rating and cited limited forward disclosure on remaining performance obligations and ARR guidance.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.