SentinelOne (S) Stock Rises 10% as Q2 Results Beat Wall Street Estimates

TLDR

• SentinelOne stock fell 4% in premarket after Q2 earnings, before recovering to trade up over 10%
• Q2 revenue rose 21% year-over-year to $292 million, beating estimates
• Non-GAAP EPS came in at $0.08, ahead of the $0.07 forecast
• ARR grew 22% to $1.218 billion, with non-endpoint products now over 50% of total ARR
• UBS raised its price target to $24, while Citizens and Baird both set targets at $25

SentinelOne reported Q2 fiscal 2027 results that beat Wall Street estimates, but investors were left wanting more detail on key growth metrics.

SENTINELONE $S Q2’27 EARNINGS HIGHLIGHTS

🔹 Revenue: $292M (Est. $290M) 🟢; +21% YoY
🔹 Adj. EPS: $0.08 (Est. $0.07) 🟢; +100% YoY
🔹 ARR: $1.22B; +22% YoY
🔹 Non-GAAP Operating Margin: 10%; +800 bps YoY

FY27 Guide:
🔹 Adj. EPS: $0.30-$0.32 (Est. $0.35) 🔴
🔹 Revenue:…

— Wall St Engine (@wallstengine) August 27, 2026

The stock initially dropped 4% in premarket trading after results dropped Wednesday evening. It later recovered sharply, trading up more than 10% as of Thursday.

SentinelOne, Inc., S

Revenue for the quarter came in at $292 million, up 21% year-over-year and ahead of the $290.15 million analysts had penciled in. Non-GAAP EPS of $0.08 beat the $0.07 consensus.

ARR grew 22% to $1.218 billion. The company added $56 million in net new ARR, ahead of street expectations.

Non-GAAP operating margin improved to 10%, up from 2% in the same quarter last year. GAAP net loss margin was 32%, slightly wider than the prior year’s 30%.

The company ended the quarter with $813 million in cash, cash equivalents, and investments. Free cash flow came in lighter than expected, partly due to severance costs.

Guidance Falls Short on EPS

For Q3, SentinelOne guided for revenue of $309 million to $311 million and non-GAAP EPS of $0.08 to $0.09. Analysts had expected $309.5 million in revenue and $0.11 in EPS, making the earnings guidance a miss.

Full-year revenue guidance was nudged up to $1.202 billion to $1.207 billion, compared to a prior range of $1.2 billion to $1.21 billion. Full-year non-GAAP EPS guidance of $0.30 to $0.32 came in below the $0.35 analyst estimate.

J.P. Morgan’s Brian Essex kept his Neutral rating and $22 price target, calling the results a “healthy beat and raise” but flagging limited disclosure. The company does not report current remaining performance obligations or provide ARR guidance, which Essex said makes it harder to assess near-term momentum.

Remaining performance obligations grew 45% year-over-year, but without the current portion broken out, investors cannot easily gauge how much will convert in the next twelve months.

Analyst Targets Move Higher

UBS raised its price target to $24 from $16, keeping a Neutral rating. The firm pointed to the Q2 beat and the company’s valuation at 5.3 times calendar year 2027 enterprise value-to-sales as relatively cheap for the sector. UBS said the lack of a clear improvement to ARR guidance was a reason for caution.

Citizens raised its target to $25 from $23 with a Market Outperform rating. Baird reiterated Outperform with a $25 target, highlighting net new ARR growth and the 45% jump in remaining performance obligations.

Non-endpoint products, including cloud, data, and AI security, now account for more than 50% of total ARR. Management pointed to sales cycle compression and record pipeline levels heading into the second half.

The stock currently trades at $22.71, near its 52-week high of $23.95. The stock is up 73% over the past six months.

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