SentinelOne to Report Q2 Earnings: What's in Store for the Stock?

SentinelOne S is set to release second-quarter fiscal 2027 results on Aug. 27, 2026. 

The company expects fiscal second-quarter revenues in the range of $289-$291 million and adjusted earnings between 6 cents and 8 cents per share. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at $290.03 million, suggesting growth of 19.76% from the figure reported in the year-ago quarter.

The consensus mark for earnings has remained at 7 cents per share over the past 30 days, suggesting 75% growth from the figure reported in the year-ago quarter.

SentinelOne’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 47.50%.

SentinelOne, Inc. Price and EPS Surprise

SentinelOne, Inc. price-eps-surprise | SentinelOne, Inc. Quote

Let us see how things are likely to have shaped up for this announcement.

Factors Likely to Impact S’ Q2 Performance

SentinelOne’s second-quarter fiscal 2027 performance is expected to have benefited from sustained momentum across endpoint, artificial intelligence (AI), data and cloud security. In the fiscal first quarter, annual recurring revenues (ARR) increased 23% year over year, while net new ARR rose 55% to a record $44 million. Customers generating ARR of $100,000 or more increased 17% and ARR per customer reached a company record. Remaining performance obligations increased 30% to a record $1.5 billion. Continued new-logo additions, improving net retention, and multiproduct expansion are likely to have supported top-line growth in the second quarter of fiscal 2027.

The to-be-reported quarter’s results are likely to benefit from increasing adoption of SentinelOne’s AI-powered security portfolio. Prompt Security ARR nearly doubled in the fiscal first quarter, while Purple AI continued gaining traction through its autonomous investigation capabilities. The May launch of Singularity AI Red Teaming further broadened the company’s AI security offerings by helping customers identify vulnerabilities in AI applications before deployment. Prompt Security is also serving as an entry point for new customers and creating cross-selling opportunities across endpoint, cloud and AI SIEM solutions.

Another key driver for the fiscal second quarter is the accelerated adoption of SentinelOne’s non-endpoint solutions, particularly in data and cloud security. In the first quarter of fiscal 2027, non-endpoint ARR approached 50% of total ARR, driven by robust growth in AI SIEM and cloud runtime security. Customer wins, such as a major luxury brand replacing Splunk with SentinelOne’s AI SIEM and a large private company expanding its cloud security footprint, demonstrate the platform’s appeal. This diversification of revenue streams is expected to provide resilience and incremental growth in the second quarter of fiscal 2027.

SentinelOne’s profitability is likely to benefit from ongoing cost and productivity initiatives in the to-be-reported quarter. The company’s workforce optimization program is expected to generate approximately $45 million in annualized savings while allowing continued reinvestment in AI security, data and cloud. SentinelOne expects second-quarter fiscal 2027 operating income of $23-$25 million, implying an operating margin of about 8% at the midpoint. 

However, macroeconomic and geopolitical uncertainties could have affected enterprise spending, deal timing, and sales cycles, while a growing mix of larger and more back-end-loaded transactions may have created some quarterly variability.

What Our Model Says About S

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

SentinelOne has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.

Amphenol APH has an Earnings ESP of +1.06% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol shares have gained 13.8% in the year-to-date period. APH has a long-term earnings growth rate of 26.77%.

Celestica CLS has an Earnings ESP of +5.27% and a Zacks Rank #1 at present.

Celestica shares have dropped 0.2% in the year-to-date period. CLS has a long-term earnings growth rate of 43.27%.

Vertiv VRT has an Earnings ESP of +0.06% and a Zacks Rank #2 at present.

Vertiv shares have climbed 57.1% in the year-to-date period. VRT has a long-term earnings growth rate of 74.61%.

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This article originally published on Zacks Investment Research (zacks.com).

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