SentinelOne, Inc. Q3 FY2026 earnings call

• Q3 was a strong quarter with top and bottom line exceeding expectations, ARR grew 23% YOY, net new ARR positive. • Won new logos and expanded footprint globally, with Singularity platform's AI, data, and security combination driving adoption. • Purple AI growth exceeded expectations with a record attach rate over 40%, Cloud Security bookings growth strongest in 12 months, Data Solutions bookings growth tripled YOY. • Acquired Observo AI to enhance data pipeline and innovation, Prompt Security showing early traction. • Customer wins included a global hospitality brand adopting AI SIEM, a global consumer products company signing a Flex deal, a U.S. federal agency broadening deployment, and a Fortune 500 brand consolidating solutions. • Expanded partner ecosystem with deepened engagements and strategic alliances with hyperscalers.

In Q3, non-Endpoint solutions represented approximately half of quarterly bookings. ARR grew 23% year-over-year. ARR per customer reached a new company record, primarily driven by strong contributions from data, Purple AI, and Cloud Security Solutions. International markets grew 34% and accounted for 40% of total revenue. Customers with ARR of $100,000 or more grew 20% to 1,572.

• Fiscal year 2026 revenue expected ~$1.001B, 22% YOY growth, midpoint of prior guidance increased by $1M. • Q4 revenue expected ~$271M, 20% YOY growth. • Full year gross margin expected ~78.5%, Q4 gross margin ~77.5%. • Full year operating margin expected slightly over 3%, Q4 operating margin ~5%. • Reaffirmed commitment to positive free cash flow for the full year.

• Macro environment can influence deal timing and sales cycles. • In-quarter linearity and lower than anticipated Services contribution can impact Q4 revenue. • Strategic investments in cloud infrastructure and capacity expansion may affect gross margin in the short term.

Q: Saket Kalia with Barclays asked about products outside Endpoint driving new business and Flex's role.

A: Tomer Weingarten said Data Solutions had triple-digit growth, Purple AI had a record attach rate, and Flex enables consumption across the platform.

Q: John DiFucci with Guggenheim asked about guidance and Barbara Larson's transition.

A: Barbara Larson said Q4 guidance reflects steady momentum, her transition is a personal decision.

Q: Brian Essex with JPMorgan asked about gross margin compression.

A: Barbara Larson said it's due to strategic investments in cloud infrastructure and global scale.

Q: Nasr Islam with Deutsche Bank asked about M&A.

A: Tomer Weingarten said platform is competitive, but opportunistic with M&A.

Q: Meta Marshall with Morgan Stanley asked about Flex traction.

A: Tomer Weingarten said steady execution and Flex enabling larger multi-solution deals.

Q: Joseph Gallo with Jefferies asked about net new ARR in 4Q.

A: Barbara Larson said Q4 net new ARR expected higher sequentially.

Q: Fatima Boolani with Citi asked about net new ARR and NRR.

A: Barbara Larson said net new ARR solid with growth in emerging products, NRR in expansionary territory.

Q: Eric Heath with KeyBanc asked about deal timing and sales cycles.

A: Barbara Larson said Q4 is back-end loaded with U.S. holidays and lower Services contribution.

Q: Jonathan Ho with William Blair asked about AI security adoption.

A: Tomer Weingarten said Prompt Security has early traction, aligning with go-to-market.

Q: Shaul Eyal with TD Cowen asked about accelerating net new ARR.

A: Tomer Weingarten said Flex and integrated acquisitions help.

Q: Michael Cikos with Needham asked about deal timing and public sector.

A: Tomer Weingarten said deal timing unpredictable, federal business strong.

Q: Zachary Schneider with Baird asked about Observo AI benefits.

A: Tomer Weingarten said Observo AI provides end-to-end data pipeline capabilities.

Q: Adam Tindle with RJF asked about partner ecosystem.

A: Tomer Weingarten said partner ecosystem robust, no meaningful disruption.

Q: Joshua Tilton with Wolfe Research asked about focus on growth vs profitability.

A: Tomer Weingarten said no change in focus, continuing on path to profitability.

Q: Patrick Edwin Colville with Scotiabank asked about emerging products' bookings.

A: Tomer Weingarten said balanced contribution with core endpoint and emerging products growth vectors.