SentinelOne (S) Q1 2027 earnings summary

Executive summary

• Q1 FY27 delivered 21% revenue growth to $277 million and 23% ARR growth to $1,163 million, with record net new ARR and improved operating margin, driven by strong adoption of AI, data, and cloud solutions, and nearly 50% of ARR from non-endpoint offerings.

• Customers with $100,000+ ARR increased 17% to 1,702, and multi-product adoption surged among enterprise clients.

• The company announced an 8% workforce reduction to streamline operations, improve agility, and reinvest in high-growth areas, expecting $45 million in annualized cost savings.

• Completed acquisitions of Prompt Security and Observo, enhancing AI and data pipeline capabilities.

• Recognized as a technology leader with top industry accolades and high customer satisfaction.

Financial highlights

• Q1 revenue grew 21% year-over-year to $277 million; international revenue rose 25% and now represents 39% of total revenue.

• Net new ARR reached $44 million, up 55% year-over-year; total ARR growth accelerated to 23%.

• Non-GAAP operating margin improved by 550 basis points year-over-year to 4%; GAAP operating margin improved to (29)% from (38)%.

• Adjusted free cash flow margin was 6.5%, up 440 basis points year-over-year; RPO grew 30% to a record $1.5 billion.

• Ended Q1 with $812 million in cash and investments, and no debt.

Outlook and guidance

• FY27 revenue expected between $1.195 billion and $1.205 billion, representing 20% year-over-year growth at midpoint.

• Q2 revenue guidance is $289–$291 million; non-GAAP operating income: $23–$25 million; non-GAAP EPS: $0.06–$0.08.

• FY27 operating income outlook raised to $115–$125 million (10% margin at midpoint), up 650 basis points from FY26.

• FY27 EPS expected between $0.32 and $0.38; non-GAAP tax rate set at 17%.

• One-time restructuring charge of $25 million expected in Q2, with $45 million in annualized cost savings.