SentinelOne Q1 revenue slightly misses estimates, cash flow marging nearly halves

SentinelOne

28/05/2026 21:28

Overview
Cybersecurity software provider's fiscal Q1 revenue slightly misses estimates
Co operating cash flow marging decreased to 14%, compared to 23% last year
Company reported record net new ARR growth and raised non-GAAP operating income outlook for the year

Outlook
SentinelOne sees Q2 revenue between $289 mln and $291 mln
Company raises non-GAAP operating income outlook for fiscal year 2027 to $115-125 mln
SentinelOne expects full-year non-GAAP diluted EPS of $0.32-$0.38

Result Drivers
RECORD NET NEW ARR - Co said record net new annualized recurring revenue growth drove Q1 results
EMERGING SOLUTIONS ADOPTION - Co said emerging solutions reached half of total company ARR, reflecting increased customer adoption
OPERATING LEVERAGE - Co cited operating leverage as contributing to improved non-GAAP operating and net income margins

Company press release: ID:nBw7kC54fa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$277 mln
$277.31 mln (33 Analysts)
Q1 Adjusted EPS
Beat
$0.04
$0.02 (34 Analysts)
Q1 Gross Margin
 
72.00%
 
Q1 Adjusted Gross Margin
 
77.00%
 
Q1 Annual Recurring Revenue
 
$1.16 bln
 
Q1 Cash & Investments
 
$812 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 16 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for SentinelOne Inc is $18.00, about 0.3% above its May 27 closing price of $17.95
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 46 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)