SentinelOne, Inc. (NYSE: S)

SentinelOne's Q1 FY2026 financial performance showcased robust growth across key metrics. Total revenue of $229.0 million represented 23% year-over-year growth, demonstrating the company's ability to capture market share in the rapidly expanding cybersecurity market. The strong revenue performance was driven by continued customer expansion and increased platform adoption across enterprise segments.

The company's subscription business model remained healthy with ARR growing 24% year-over-year to $948.1 million. This growth was supported by strong customer acquisition and expansion, with customers generating $100,000 or more in ARR increasing 22% to 1,459. The average ARR per customer reached record highs, indicating successful upselling and cross-selling initiatives.

Profitability metrics showed significant improvement, with non-GAAP operating margin improving 400 basis points to -2% and non-GAAP net income margin reaching 3%, a 330 basis point improvement. This margin expansion reflects the company's focus on operational efficiency and disciplined expense management while continuing to invest in growth initiatives.

Free cash flow performance was particularly impressive, with free cash flow margin reaching a record 20%, up 200 basis points year-over-year. Operating cash flow margin of 23% demonstrated the scalability of SentinelOne's business model and strong underlying cash generation capabilities.

The company maintained its best-in-class gross margin profile at 79% (non-GAAP), reflecting the high-value nature of its AI-powered cybersecurity platform and strong pricing power in the market. This consistent gross margin performance provides a solid foundation for scaling operations and investing in innovation.

SentinelOne continued to demonstrate technology leadership and innovation during Q1 FY2026, launching several groundbreaking capabilities that position the company at the forefront of AI-powered cybersecurity:

Key Platform Innovations

• Purple AI Athena: Launched the industry's first true end-to-end Agentic AI platform for cybersecurity, providing autonomous security capabilities that scale beyond traditional human-powered approaches
• Unified Cloud Security Suite: Introduced integrated solution bringing together Cloud Workload Protection (CWP), Cloud Security Posture Management (CSPM), Cloud Detection & Response (CDR), Cloud Data Security (CDS), Cloud Identity, and AI Security Posture Management (AI-SPM)
• FedRAMP High Certification: Became the first to achieve FedRAMP High certification for AI Security offerings, enabling expanded government market opportunities
• Data Solutions Milestone: Data solutions surpassed $100 million in ARR, demonstrating strong demand for comprehensive security analytics and threat intelligence

The company's AI capabilities showed exceptional market traction, with Purple AI achieving triple-digit quarterly bookings growth year-over-year and record-high attach rates among both new and existing customers. This demonstrates the market's recognition of SentinelOne's AI leadership and the value delivered by autonomous security capabilities.

SentinelOne's platform approach is resonating strongly with enterprise customers, as evidenced by increasing solution category adoption. Approximately 40% of enterprise customers have adopted 3+ solution categories, with 3x customer growth in this segment over the prior 24 months. Additionally, about 20% of enterprise customers have adopted 4+ solution categories, representing 4x customer growth.

SentinelOne's customer growth metrics demonstrate strong market momentum and successful execution of its platform strategy. The 22% growth in customers with $100,000+ ARR to 1,459 reflects the company's success in landing enterprise customers and expanding within existing accounts.

The company achieved multiple Fortune 500 wins during the quarter, highlighting its ability to compete effectively in the largest enterprise segments. These wins validate SentinelOne's differentiated AI-powered approach and demonstrate strong customer confidence in the platform's capabilities.

Platform adoption continues to accelerate, with enterprise customers increasingly adopting multiple solution categories. This trend indicates successful customer expansion and demonstrates the value of SentinelOne's unified platform approach versus point solutions from competitors.

The record ARR per customer achieved during the quarter reflects successful upselling and cross-selling initiatives, as well as the natural expansion that occurs as customers deploy SentinelOne across more endpoints and add additional security capabilities.

Geographic expansion remains a key growth driver, with strong performance across international markets. The company's partner ecosystem continues to scale market presence, with leadership positions in the MSSP ecosystem and expanding relationships with hyperscalers and OEMs.

SentinelOne's technology leadership position was further validated through industry recognition and competitive evaluations during Q1 FY2026:

Industry Leadership Recognition

• Gartner Magic Quadrant Leader: Maintained leadership position in the Gartner Magic Quadrant for Endpoint Protection Platforms for the 4th consecutive year
• MITRE ATT&CK Excellence: Achieved 100% detection accuracy, 100% technique coverage, 100% real-time response, and 88% less noise than median across all vendors in 2024 evaluations
• Customer Satisfaction: Maintained 95%+ "would recommend" ratings across Gartner Peer Insights for EPP, MDR, and CNAPP categories
• SC Awards Recognition: Won Best Endpoint Security and Best Cloud Security at the 2025 SC Awards

The company's autonomous security vision positions it uniquely in the market evolution from legacy signature-based approaches to AI-powered autonomous security. SentinelOne's approach of combining AI on device with cloud-based intelligence, unified data platforms, and machine-built context represents the future of cybersecurity.

The technology stack spans over 30 distinct capabilities across seven solution categories: AI & Automation, Endpoint, Cloud, Data, Identity, Exposure Management, and Threat Services. This comprehensive coverage enables customers to consolidate vendors and achieve better security outcomes through unified detection and response.

SentinelOne's innovation leadership is supported by a best-in-class portfolio of investments through SentinelOne Ventures, which has backed leading companies across security, AI, and data markets. This strategic investment approach provides insights into emerging technologies and potential acquisition opportunities.

SentinelOne operates in a vast and growing total addressable market (TAM) exceeding $100 billion, positioned at the intersection of data, security, and AI. The company's comprehensive platform approach enables it to capture value across multiple high-growth market segments:

Total Addressable Market (2025 Forecasts)

• Endpoint Security: $17 billion market with strong growth driven by remote work and cloud adoption
• Cloud Security: $12 billion market expanding rapidly as organizations accelerate digital transformation
• Data Analytics: $31 billion market reflecting growing demand for security analytics and threat intelligence
• Generative AI Security: $3 billion emerging market as organizations deploy AI technologies
• Additional Categories: $50+ billion across identity security, exposure management, managed services, data protection, and threat intelligence

The company's strategic focus on AI-powered autonomous security aligns with market evolution toward more sophisticated, automated threat detection and response capabilities. As cyber threats become more complex and security teams face talent shortages, the value proposition of autonomous security solutions continues to strengthen.

SentinelOne's guidance for Q2 FY2026 projects continued strong growth with revenue expected at $242 million (22% year-over-year growth) and full-year FY2026 revenue of $996-1,001 million (22% growth). The company expects to maintain strong profitability with full-year non-GAAP operating margins of 3-4%.