SentinelOne Q2 Revenue Beats but Weak Profit Guidance Sends Shares Down Over 5% After Hours

SentinelOne Inc reported its second-quarter financial results after the market close on Thursday. Here are the key points from the cybersecurity company's earnings report.

SentinelOne shares are moving. Where is S stock headed?

SentinelOne Second-Quarter Key Metrics

SentinelOne reported second-quarter revenue of $291.98 million, surpassing the consensus estimate of $290.25 million. The company posted adjusted earnings per share of 8 cents for the quarter, beating analyst expectations of 7 cents per share.

Total revenue grew 21% year-over-year. As of July 31, annualized recurring revenue increased 22% year-over-year to approximately $1.22 billion, with the number of customers with ARR of $100,000 or more rising 13% to 1,715.

"Our second-quarter performance demonstrates strong progress across every dimension of our business—top-tier growth momentum, accelerating platform adoption, and undisputed technology leadership in both 'AI-powered security' and 'security for AI,'" said Tomer Weingarten, CEO of SentinelOne.

The company ended the period with $813 million in cash, cash equivalents, and investments.

Weak EPS Outlook Weighs on S Stock

SentinelOne expects third-quarter revenue of approximately $309 million to $311 million, compared to market expectations of $309.44 million. The company projects adjusted EPS of 8 cents to 9 cents for the third quarter, versus market expectations of 11 cents per share.

This soft earnings guidance appears to be pressuring shares in after-hours trading. SentinelOne also lowered its fiscal 2027 adjusted EPS outlook to a new range of 30 cents to 32 cents, down from the previous range of 32 cents to 38 cents, while market expectations stood at 35 cents per share.

The company expects full-year revenue of $1.205 billion to $1.207 billion, above its prior guidance of $1.195 billion to $1.205 billion. Analysts projected full-year revenue of $1.205 billion.

SentinelOne's quarterly earnings call with investors and analysts is scheduled for 4:30 p.m. Eastern Time.

S Stock Declines After Market Close

S stock price action: At the time of Thursday's release, SentinelOne shares were down 5.33% in after-hours trading, trading at $21.50.