SentinelOne Q2 Earnings Call Highlights

SentinelOne exceeded Q2 fiscal 2027 expectations: Revenue rose 21% year over year to $292 million, ARR increased 22%, and non-GAAP operating margin reached 10%. The company also reported $0.08 in adjusted EPS, up from $0.04 a year earlier. AI security is becoming a major growth driver: ARR from Prompt Security and Purple AI tripled year over year, while demand also accelerated across cloud, data and endpoint offerings. SentinelOne expects AI security to become its next category exceeding $100 million in ARR. The company raised its outlook amid stronger platform adoption and larger contracts: Full-year fiscal 2027 revenue guidance increased to $1.202 billion-$1.207 billion, with management citing improving retention, multi-product adoption and a record $1.7 billion in remaining performance obligations.

SentinelOne NYSE: S reported second-quarter fiscal 2027 results that exceeded its guidance for revenue, operating income and earnings per share, as the cybersecurity company cited growth in artificial intelligence security, cloud and data offerings alongside continued endpoint demand. Revenue for the quarter ended July 31, 2026, rose 21% year over year to $292 million, above the high end of the company’s outlook. International markets accounted for 39% of revenue. Total annual recurring revenue, or ARR, increased 22%, while record second-quarter net new ARR totaled $56 million, up 4% from a year earlier.

ARR from SentinelOne’s AI security offerings, Prompt Security and Purple AI, tripled year over year in the second quarter. The company expects AI security to become its next nine-figure ARR category after endpoint, cloud, data and Wayfinder. Prompt Security remained the company’s fastest-growing platform solution, according to Weingarten. The offering is benefiting as organizations seek visibility, compliance controls and guardrails for AI models and autonomous agents. Bell Canada selected Prompt Security to secure its network, citing requirements for real-time visibility, automated guardrails and compliance. Purple AI, SentinelOne’s AI security operations center offering, is also seeing adoption among new and existing customers. Its agentic investigation features can analyze alerts across complex environments and produce assessments in seconds rather than hours. An IDC study found a 338% three-year return on investment for Purple AI customers.

Demand related to AI preparedness was broad-based rather than limited to a single product category. Modern endpoint protection, data ingestion and response capabilities, cloud workload security, and AI security tools all play roles in helping organizations monitor and secure AI at runtime. “We are seeing an acceleration in our data platform, we are seeing an acceleration in our Singularity Cloud workload security, and obviously, we are seeing acceleration with our AI security products,” Weingarten said.

SentinelOne said customers are increasingly adopting multiple products across the Singularity Platform. ARR per customer reache...