SentinelOne Inc. reported its third‑quarter fiscal 2026 results, posting revenue of $258.9 million—up 23% from $210.6 million a year earlier—and an adjusted earnings per share of $0.07, a $0.02 beat over the consensus estimate of $0.05.
The revenue growth was driven by robust demand for the company’s AI‑native security platform, a 34% increase in international sales that now account for 40% of total revenue, and the recent acquisitions of Observo AI and Prompt Security, which added new product lines and customer bases.
Gross margin held steady at 79%, while operating margin improved to 7% from a loss in the prior year. The margin expansion reflects a higher mix of high‑margin AI contracts and disciplined cost management, offsetting the impact of strategic investments in new capabilities.
Management guided for Q4 revenue of approximately $271 million, slightly below the consensus estimate of $273.2 million, and an operating margin of 5% versus 7% in Q3. The CFO’s departure adds an element of uncertainty to the outlook, even as the company emphasizes continued focus on profitability and disciplined execution.
CEO Tomer Weingarten highlighted the “early‑mover advantage” of the AI‑for‑security platform and the “resonating” demand from customers, while CFO Barbara Larson noted that the company had “balanced industry‑leading growth with financial rigor” and that the Q4 guidance reflects a prudent approach amid a dynamic macro environment.
Investors reacted negatively to the earnings release, citing the cautious Q4 guidance and the CFO transition as key concerns, despite the strong Q3 performance.
The results demonstrate that SentinelOne’s AI‑native platform is gaining traction and that the company is on a path to sustainable profitability, but the forward guidance and leadership change temper enthusiasm for the near‑term outlook.
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