SentinelOne Raises FY2027 Outlook as Revenue Jumps 21% and ARR Hits $1.16B
SentinelOne (NYSE:S) lifted its full‑year guidance, projecting FY2027 revenue of $1.195‑$1.205 billion after a 21% YoY surge to $277 million in Q1. The cyber‑security firm also flagged a 23% jump in annualized recurring revenue to $1.163 billion, underscoring accelerating demand for its autonomous, agent‑based platform.
SentinelOne’s first‑quarter FY2027 results, disclosed in an 8‑K filing on May 28, 2026, show the company moving deeper into profitability while maintaining rapid growth. Revenue climbed to $277 million, up 21% from $229 million a year earlier, and ARR rose 23% to $1.163 billion as of April 30. The customer base with contracts exceeding $100,000 grew 17% to 1,702 accounts, reflecting broader adoption of the firm’s AI‑driven endpoint and cloud defenses.
On the margin front, GAAP gross margin slipped to 72% from 75%, and non‑GAAP gross margin fell to 77% from 79%, a modest compression tied to higher service and support spend. However, operating efficiency improved markedly: GAAP operating margin narrowed to ‑29% (from ‑38%) and non‑GAAP operating margin turned positive at 4%, up from a loss‑making ‑2% a year ago. GAAP net‑loss margin also narrowed dramatically to ‑28% versus ‑91% previously, while non‑GAAP net‑income margin held steady at 4%.
Cash remains a strength, with $812 million in cash, cash equivalents and investments, giving the company ample runway for R&D and strategic acquisitions. The firm’s CFO, Sonalee Parekh, highlighted that operating leverage is now delivering a 14% operating‑cash‑flow margin and a 22% adjusted free‑cash‑flow margin, up from 20% a year ago.
Guidance outlook - Q2 FY2027 revenue: $289‑$291 million - FY2027 revenue: $1.195‑$1.205 billion - Non‑GAAP operating income: $23‑$25 million for Q2; $115‑$125 million for FY - Non‑GAAP diluted EPS: $0.06‑$0.08 for Q2; $0.32‑$0.38 for FY - Diluted shares: 347 million (Q2) and 350 million (FY) - Non‑GAAP tax rate: 17%
CEO Tomer Weingarten called the results “record net new ARR” and emphasized the shift toward autonomous, agentic defense across AI, data, cloud and endpoint layers. The company will host a live audio webcast at 2 p.m. PT on May 28, with a replay on its investor‑relations site.
The market reacted modestly; SentinelOne shares edged up 0.4% to $18.02, keeping the stock near the upper‑mid range of its 52‑week band and contributing to a 20.1% YTD gain. Analysts see the upgraded outlook as a validation of the firm’s pricing power and its ability to translate ARR growth into sustainable profitability.
Financial Details
| Q1 FY2027 Total Revenue | $277.00M |
| Q1 FY2026 Total Revenue | $229.00M |
| Revenue Growth YoY Percent | 21% |
| Q1 FY2027 ARR | $1.16B |
| ARR Growth YoY Percent | 23% |
| Customers ARR 100k Plus | $1,702 |
| GAAP Gross Margin Percent | 72% |
| GAAP Gross Margin Prior Percent | 75% |
| Non GAAP Gross Margin Percent | 77% |
| Non GAAP Gross Margin Prior Percent | 79% |
| GAAP Operating Margin Percent | -29% |
| GAAP Operating Margin Prior Percent | -38% |
| Non GAAP Operating Margin Percent | 4% |
| Non GAAP Operating Margin Prior Percent | -2% |
| GAAP Net Loss Margin Percent | -28% |
| GAAP Net Loss Margin Prior Percent | -91% |
| Non GAAP Net Income Margin Percent | 4% |
| Non GAAP Net Income Margin Prior Percent | 3% |
| Operating Cash Flow Margin Percent | 14% |
| Operating Cash Flow Margin Prior Percent | 23% |
| Adjusted Free Cash Flow Margin Percent | 22% |
| Adjusted Free Cash Flow Margin Prior Percent | 20% |
| Cash and Investments | $812.00M |
| Q2 FY2027 Guidance Revenue Min | $289.00M |
| Q2 FY2027 Guidance Revenue Max | $291.00M |
| FY2027 Guidance Revenue Min | $1.20B |
| FY2027 Guidance Revenue Max | $1.21B |
| Q2 FY2027 Guidance Non GAAP Operating Income Min | $23.00M |
| Q2 FY2027 Guidance Non GAAP Operating Income Max | $25.00M |
| FY2027 Guidance Non GAAP Operating Income Min | $115.00M |
| FY2027 Guidance Non GAAP Operating Income Max | $125.00M |
| Q2 FY2027 Guidance Non GAAP EPS Min | 0.06 |
| Q2 FY2027 Guidance Non GAAP EPS Max | 0.08 |
| FY2027 Guidance Non GAAP EPS Min | 0.32 |
| FY2027 Guidance Non GAAP EPS Max | 0.38 |
| Q2 FY2027 Diluted Shares Outstanding | $347.00M |
| FY2027 Diluted Shares Outstanding | $350.00M |
| Non GAAP Tax Rate Percent | 17% |
Key Takeaways
- Q1 FY2027 revenue rose 21% YoY to $277 M; ARR hit $1.163 B, up 23% YoY.
- Non‑GAAP operating margin turned positive at 4%, while GAAP operating margin improved to ‑29%.
- FY2027 revenue guidance lifted to $1.195‑$1.205 B; non‑GAAP EPS guidance set at $0.32‑$0.38.
- Cash and investments stand at $812 M, supporting continued R&D and acquisition activity.
- Shares rose 0.4% to $18.02 after the filing, reflecting investor confidence in the upgraded outlook.