SentinelOne (S) Q3 2026 earnings summary

Executive summary

• Achieved 23% year-over-year growth in both ARR and revenue for Q3 FY26, reaching $1,055.3 million ARR and $258.9 million in revenue, exceeding expectations and driven by new business and expansion with existing customers.

• Customers with ARR of $100,000+ grew 20% to 1,572, with record ARR per customer and strong enterprise adoption of multiple solution categories.

• Non-endpoint and emerging products, including data, AI, and cloud security, accounted for about half of quarterly bookings, with triple-digit growth in data solutions and strong demand for AI SIEM.

• CFO Barbara Larson to depart mid-January 2026, with Barry Paget/Padgett serving as interim CFO.

• Expanded platform capabilities through acquisitions of Observo AI and Prompt Security, enhancing AI and data pipeline capabilities.

Financial highlights

• Q3 revenue rose 23% year-over-year to $258.9 million; international revenue grew 34% and now represents 40% of total revenue.

• Non-GAAP gross margin was 79–80%; GAAP gross margin was 74%.

• Non-GAAP operating margin improved by nearly 1,200 basis points year-over-year, reaching 7–9.6%; non-GAAP net income margin was 6.8–10%.

• Free cash flow margin reached 4.7–6% in Q3; cash, cash equivalents, and investments totaled $873.6 million at quarter-end.

• Operating cash flow for the nine months was $72.2 million, up from $37.1 million in the prior year.

Outlook and guidance

• FY26 revenue expected to be approximately $1,001 million, up 22% year-over-year; Q4 revenue guidance is $271 million, up 20% year-over-year.

• FY26 non-GAAP gross margin expected at 78.5%; Q4 at 77.5%, reflecting investments in cloud infrastructure.

• FY26 non-GAAP operating margin expected at 3%, with Q4 at 5%; guidance absorbs impacts from recent acquisitions and FX headwinds.

• Positive free cash flow reaffirmed for the full year, expected to be a few points higher than operating margin.

• Management expects continued macroeconomic headwinds, including longer sales cycles and deal downsizing, especially among large enterprise customers.