SentinelOne Crosses $1.2 Billion ARR as Non-GAAP Operating Margin Jumps to 10% From 2%

SentinelOne reported second-quarter fiscal 2027 results on August 27, 2026, for the quarter ended July 31, with total revenue up 21% year-over-year to $292 million, compared to $242 million a year earlier. Annualized recurring revenue grew 22% to $1.218 billion.

The Profitability Improvement, Specifically

• Non-GAAP operating margin improved to 10%, up sharply from just 2% in the same quarter a year earlier — a five-fold improvement in the margin figure itself
• GAAP operating margin improved to negative 31%, from negative 33% — a smaller but still positive directional improvement on the GAAP measure
• Non-GAAP diluted EPS reached $0.08, up from $0.04 the prior year, doubling year-over-year

Customer Growth

Customers with $100,000 or more in ARR grew 13% to 1,715, indicating continued expansion specifically in the larger-enterprise customer segment alongside overall ARR growth.

Raised Guidance

SentinelOne raised full fiscal year 2027 revenue guidance to $1.202-1.207 billion, implying roughly 20% growth, and raised its operating income outlook to $124-128 million, representing approximately a 10% margin at the midpoint — consistent with the margin improvement already visible in the reported quarter.

What This Means Alongside Other Recent Security Vendor Earnings

SentinelOne's results land in the same general window as Zscaler's and Palo Alto Networks' recent earnings, adding to a pattern of strong ARR growth across cybersecurity vendors this quarter, alongside a specific profitability improvement story of its own. For organizations evaluating endpoint security and cybersecurity platform vendors broadly, SentinelOne's margin trajectory — moving meaningfully toward profitability while sustaining double-digit ARR growth — is a useful data point for assessing the vendor's long-term financial sustainability, distinct from the growth-rate comparison alone.