SentinelOne gears up for Q1 earnings amid AI momentum

SentinelOne will report its first-quarter fiscal 2026 earnings on May 28, following a strong Q4 that beat expectations across the board. Revenue in the previous quarter rose 29% year-over-year to $225.5 million, and EPS flipped positive to $0.04, marking a solid turnaround from a loss a year earlier.

Investors now await signs that SentinelOne can sustain its AI-led growth in a competitive cybersecurity space.

Q1 estimates show steady growth for SentinelOne

Analysts expect SentinelOne to post earnings of $0.02 per share for Q1, with revenue forecasted at $228 million. That would represent 22.4% revenue growth over last year and a substantial 280% year-over-year improvement in profitability for fiscal 2026.

While the Zacks Consensus Estimate hasn’t shifted in 60 days, guidance and ARR trends will play a pivotal role in market reaction.

Platform expansion fuels SentinelOne revenue drivers

AI-powered tools like Purple AI and SentinelOne’s AI SIEM are key catalysts this quarter. The company closed over 300 deals in Q4 tied to these solutions, highlighting its evolving product mix and appeal beyond traditional endpoint protection.

More than 40% of large customers now use three or more modules of the Singularity platform, signaling deeper enterprise penetration.

Legacy churn to weigh on ARR this quarter

SentinelOne expects net new Annual Recurring Revenue (ARR) in the low $30 million range for Q1. That figure is tempered by the planned retirement of its legacy deception solution, resulting in a projected $5 million churn.

While this transition supports long-term margin growth, it may apply short-term pressure to ARR growth and retention rates.

Margins stay firm as SentinelOne invests in scale

Despite expected seasonal expense pressures, SentinelOne’s gross margin is forecast to remain strong at 79%, driven by scalable cloud infrastructure. Operating margin is expected around -2%, reflecting ongoing platform investments.

The company remains focused on balancing margin improvement with expanding its AI-based cybersecurity offerings.

SentinelOne stock lags, but valuation is attractive

SentinelOne shares are down 2.8% over the last three months, underperforming security peers like CrowdStrike and Okta. Yet, at current levels, the stock trades 32.5% below its 52-week high and 37.9% above its yearly low, signaling a possible value opportunity for long-term investors.

Compared to Fortinet, which lost 3.7%, SentinelOne has held up moderately well despite headwinds.

Will SentinelOne earnings spark a rebound?

With a Zacks Rank of #3 (Hold) and an Earnings ESP of 0.00%, SentinelOne is not projected to post a surprise this quarter. Still, strong customer traction, recurring revenue strength, and AI-driven platform adoption could lift sentiment if guidance impresses.

As cybersecurity demand grows and enterprises adopt broader solutions, SentinelOne is positioned to benefit — if it can execute.