SentinelOne S reported first-quarter fiscal 2027 earnings of 4 cents per share, which surpassed the Zacks Consensus Estimate by 100%. The company registered earnings of 2 cents per share in the year-ago quarter.
Revenues of $276.7 million increased 21% year over year but missed the consensus mark by 0.2%.
As of April 30, 2026, annualized recurring revenues (ARR) grew 23% year over year to $1.16 billion. Customers with more than $100,000 in ARR increased 17% year over year to 1,702, driven by continued momentum in enterprise expansion and strong adoption of the company’s platform solutions.
SentinelOne’s shares were up 0.39% at the time of writing this article. The company's shares have increased 20.1% in the year-to-date period, surpassing the Zacks Computer & Technology sector’s rise of 19.2%.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
SentinelOne’s Operating Highlights
Adjusted gross profit was 77% in the reported quarter, which contracted roughly 200 bps year over year.
Total operating expenses of $202.2 million increased 9.1% year over year due to higher research and development expenses (up 28.1% year over year), general and administrative expenses (up 11.1% year over year), partially offset by sales and marketing expenses (down 0.2% year over year).
Non-GAAP operating income totaled $10.5 million compared to an operating loss of $3.9 million in the year-ago quarter.
SentinelOne’s Balance Sheet Remains Strong
As of April 30, 2026, SentinelOne had cash, cash equivalents and investments of $812 million.
Operating cash flow was $38.5 million in the quarter.
Adjusted free cash flow was $61.4 million compared with $45.4 million reported in the year-ago quarter, while adjusted free cash flow margin improved to 22% from 20%.
S Offers Q2 and FY27 Guidance
For the second-quarter fiscal 2027, SentinelOne expects revenues between $289 million and $291 million.
The company expects non-GAAP operating income in the range of $23-$25 million.
Non-GAAP earnings are expected to be between 6 cents and 8 cents per share for the second-quarter fiscal 2027.
For fiscal 2027, revenues are still forecasted to be between $1.195 billion and $1.205 billion.
The company raised its non-GAAP operating income outlook to $115-$125 million.
Non-GAAP earnings are expected to be between 32 cents and 38 cents per share for fiscal 2027.
SentinelOne’s Zacks Rank & Stocks to Consider
Currently, S carries a Zacks Rank #3 (Hold).
Micron Technology MU, Ciena CIEN and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU and CIEN each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 225% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Ciena shares have returned 143.9% in the year-to-date period. The company is set to report second-quarter fiscal 2026 results on June 4.
Amphenol shares have gained 9.3% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ciena Corporation (CIEN): Free Stock Analysis Report
Amphenol Corporation (APH): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
SentinelOne, Inc. (S): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).