Aug 27, 2026 earnings call — Raised revenue and operating income outlook; AI security momentum
Raised fiscal year '27 revenue outlook to $1.202 billion to $1.207 billion.
Revenue $0.3B (est $0.3B) · EPS $0.08 (est $0.07) · Next-quarter revenue outlook $0.3B–$0.3B
Key quotes
"ARR from our AI security offerings, Prompt and Purple AI, continues to be in hyper growth, tripling year-over-year in Q2."
"7- and 8-figure customer wins are becoming consistent. And cross-platform adoption drove a record ARR per customer, growing double digits year-over-year."
"For the full fiscal year '27, we are raising our revenue outlook to a range of $1.202 billion to $1.207 billion, representing 20% year-over-year growth at the midpoint."
Analyst Q&A 8
AI and product growth
Q (Patrick Edwin Colville · Scotiabank): Is advanced AI preparedness accelerating the core endpoint business or newer products like data, AI and cloud? Also, does demand start in enterprise and flow down to mid-market or the other way?
A: Management said the AI moment is broad-based and affects the whole platform, not just one product. They cited Mythos and incidents with Hugging Face and OpenAI, said you must monitor AI at runtime, and said this drives acceleration across endpoint, data platform, cloud workload security, and AI security (Prompt Security and Purple AI). They also said demand exists across enterprise and mid-market and that MSSP partners help scale deployments across segments.
"You want modern endpoint protection to be able to see all AI workloads, whether they're on employee endpoint or on a cloud workload AI, or an on-premise server, you need the visibility that modern endpoint protection brings." — Tomer Weingarten (CEO)
Sales playbook for new products
Q (Meta Marshall · Morgan Stanley): How is the sales force developing playbooks to sell a growing product set without lengthening sales cycles? And how are you balancing margin leverage with growth opportunities?
A: Management said they meet customers where they are and often lead with Prompt Security for AI regulation, and that deploying these solutions creates follow-on demand for the rest of the platform. They said this dynamic is compressing sales cycles, increasing contract duration and sales efficiency. They also said growth and margin expansion are not a trade-off: the platform gives operating leverage, they removed organizational complexity, redeployed resources to high-conviction areas, and pointed to 22% net new ARR growth, over 800 basis points of margin expansion, and RPO at $1.7 billion accelerating to 45% growth.
"I would say we're seeing more and more compression of our sales cycles just with that dynamic." — Tomer Weingarten (CEO)
Net new ARR and growth drivers
Q (Joseph Gallo · Jefferies): Can net new ARR continue to grow in the second half as comps ease? And what would it take for overall ARR growth to accelerate?
A: Management said they do not give a specific net new ARR guide but expect net new ARR to grow year-over-year for the full year. They said the business is at the start of a larger opportunity, sales efficiency is improving, the go-to-market is evolving, and they are adding self-serve platform capabilities to scale, which supports their confidence in further growth.
"We don't guide specifically on net new ARR, but we do expect for the full year for net new ARR to grow year-over-year." — Sonalee Parekh (CFO)
Investing in AI security
Q (Michael Cikos · Needham): How are you ensuring enough investment to support AI security adoption like Prompt Security? Also, when unpacking net new ARR, what is happening with endpoint ARR and other ARR components?
A: Management said AI security is their #1 priority and that most innovation is going to those products; they reported record pipeline for AI security and Purple (an agentic investigation tool). For endpoint, they said endpoint ARR growth remains healthy, they remain a technology leader, see legacy replacement opportunity, and see ARR acceleration via their MSSP ecosystem and success in upmarket enterprise customers.
"And moreover, the majority of our innovation is going towards these products." — Tomer Weingarten (CEO)
OpEx, margins, and hiring
Q (Roger Boyd · UBS): What should we expect on OpEx for the back half and is the framework tilting more toward growth after a strong first half? Also, any comments on hiring after the reset earlier this year?
A: Management highlighted strong progress on margins and especially sales and marketing efficiency, noting over 900 basis points year-over-year improvement in S&M as a percent of revenue. They said margins will continue to expand but not at the same rapid rate; Q3 and Q4 will improve sequentially and the full-year outlook implies a much higher Q4 exit rate, while leaving room to reinvest in product and go-to-market. They did not give a direct answer about hiring specifics in this exchange.
"As you think about the second half of the year, what I would say is we will -- you will continue to see margins expand, and we did raise the full year on operating income outlook as well." — Sonalee Parekh (CFO)
RPO and large-deal trends
Q (Shaul Eyal · TD Cowen): What's driving the strong RPO growth — longer contracts or higher ACV? And how do you reconcile $100,000 customer growth moderating with overall ARR growth — more expansion in large customers?
A: Management corrected the RPO to 45% year-over-year and said RPO rose from $1.5 billion to $1.7 billion, driven by larger lands and increased contract duration, including 7- and 8-figure deals. They said landing larger deals and moving upmarket is intentional; that raises average deal size which can reduce the number of customer adds per quarter but is healthier and more efficient, and they see large opportunity replacing legacy incumbents, including in air-gapped and on-premise environments.
"And yes, we are seeing larger lands, and we specifically talked about larger lands with upmarket with some of our customers signing 7 and 8 quarter -- 8-figure deals." — Sonalee Parekh (CFO)
Net new ARR full-year guide
Q (Joshua Tilton · Wolfe Research): Given the strong quarter and talk of acceleration, why does the net new ARR full-year guardrail still imply low-to-mid-single-digit growth? Help us reconcile that with the quarter strength.
A: Management pointed to multiple positive trends — acceleration in emerging products, improving net retention now showing as a trend, a solid pipeline, larger lands, compressed cycle times — and said these trends gave them confidence to raise revenue guidance. They reiterated they expect net new ARR to grow year-over-year and noted the first half beat internal targets with 22% net new ARR growth.
"We still do absolutely expect our net new ARR to grow year-over-year." — Sonalee Parekh (CFO)
Sovereign AI and on-prem security
Q (Hyun Lee · JPMorgan): Can you expand on the sovereign AI security opportunity as institutions build private AI stacks and how SentinelOne is positioned?
A: Management said many organizations and countries want to control their own data and not ship it to third-party clouds, so they need security that runs inside their own data centers or AI factories. They said SentinelOne's self-hosted on-premise capability is unique, and there is no other next-gen endpoint provider that can deliver that across every environment with independence from any cloud.
"There is no next-gen endpoint provider that can deliver that in every single environment, with complete independence of any cloud out there." — Tomer Weingarten (CEO)