SentinelOne, Inc. Q2 FY2026 earnings call

• Q2 was a landmark quarter with total ARR growing 24% to cross $1 billion and record net new ARR.
• Broad-based growth from new customer additions, expansion with existing accounts, and increased adoption of AI and data solutions.
• Launched SentinelOne Flex, a unified flexible licensing model with strong reception and 8-figure total deal value.
• Highlighted customer wins across various solutions like a global media conglomerate, luxury brand, and Fortune 50 company.
• Purple AI grew triple digits with attach rates over 30%, data solutions had record bookings, and endpoint growth accelerated.
• Announced acquisition of Prompt Security to enhance Singularity platform with GenAI security capabilities.

In Q2, SentinelOne's total ARR grew 24% and crossed $1 billion. Revenue grew 22% year-over-year to $242 million. International markets grew 27% and represented 38% of total revenue. Customers with ARR of $100,000 or more grew 23% to 1,513. Approximately half of quarterly bookings came from non-endpoint solutions. Purple AI grew triple digits with attach rates surpassing 30% of licenses sold during the quarter. Data solutions achieved record booking growth.

• Q3 revenue expected to be approximately $256 million, reflecting 22% year-over-year growth.
• Full year 2026 revenue outlook raised to $998 million to $1.02 billion, midpoint $1 billion, 22% year-over-year growth.
• Q3 gross margin expected to be approximately 78.5%, full year gross margin between 78.5% and 79%.
• Q3 operating margin expected to be about 4%, full year operating margin about 3%.

• Macro conditions can influence deal timing and sales cycles.
• Actual results may differ materially from forward-looking statements due to various risk factors.

Q: John DiFucci asked about platform adoption by existing customers and metrics to understand Singularity platform's impact on existing customers.

A: Tomer Weingarten said Q2 performance was broad-based with even split between new customers and expansion, and solutions like AI, data, and cloud are driving both new and existing customer growth.

Q: Robbie Owens asked about guardrails for Q3 net new ARR.

A: Barbara Larson said they don't provide formal ARR guidance but Q2 results and updated outlook imply improved net new ARR view for full year.

Q: Brad Zelnick asked about Flex's relation to existing practices and financial impact.

A: Tomer Weingarten said Flex is a major step forward with strong reception, and Barbara Larson said Flex deals are similar to other ARR contracts with revenue recognized ratably.

Q: Joseph Gallo asked about ramp of Prompt AI acquisition's top line.

A: Tomer Weingarten said Prompt Security addresses generative AI risks and will be a significant contributor in years to come.

Q: Rudy Kessinger asked about reasons for not seeing more revenue growth in the balance of the year.

A: Barbara Larson said they are improving second half revenue outlook but being prudent due to macro environment.

Q: Michael Cikos asked about drivers of net new ARR upside.

A: Tomer Weingarten said it's broad-based with strong expansion motion, net new logo acquisition, and contributions from data and Flex.

Q: Shrenik Kothari asked about go-to-market progress for non-endpoint solutions.

A: Tomer Weingarten said teams executed well, Flex has gone well, and it's a force multiplier for platform expansion.

Q: Brian Essex asked about market evolution for AI native SIEM.

A: Tomer Weingarten said customers want control over data and real-time processing of data for AI-driven threat analysis.

Q: Ittai Kidron asked about U.S. vs international mix and RPO duration.

A: Barbara Larson said international was 38% of revenue, RPO grew 26% with relatively stable duration.

Q: Shaul Eyal asked about Flex's revenue uplift potential and pipeline.

A: Barbara Larson said Flex is early but expected to boost deal sizes and pipeline is healthy.

Q: Roger Boyd asked about Lenovo partnership progress.

A: Tomer Weingarten said Lenovo partnership is on track and a contributor to outlooks.

Q: Yun Kim asked about Flex pricing's impact on large deals and early renewals.

A: Tomer Weingarten said Flex streamlines sales process and provides tools for customers to procure platform needs.

Q: Jonathan Ho asked about Singularity Cloud's success and architectural differences.

A: Tomer Weingarten said they started with cloud workload protection and have a broad cloud security platform with compounded value.

Q: Gabriela Borges asked about prudence in back half guidance.

A: Barbara Larson said they are being prudent about deal timing and macro factors while seeing strong Q2 momentum.

Q: Trevor Walsh asked about buyer personas for AI security.

A: Tomer Weingarten said there are employee use cases adjacent to endpoint DLP and cloud-oriented AI workload security teams.