SentinelOne Raises Annual Revenue Guidance Following Strong Q2 Results

Investing.com — SentinelOne lifted its annual revenue guidance Tuesday after reporting Q2 results that topped Wall Street estimates, driven by new business deals and rising cybersecurity demand.

SentinelOne Inc (NYSE:S) rose around 1% in Wednesday’s premarket trade.

For the three months ended July 31, the AI-powered cybersecurity provider reported adjusted earnings per share of $0.01 on revenue of $198.9M, exceeding Wall Street estimates of $197.4M.

For Q3, the company forecasts revenue of $209.5M and an adjusted margin of 79%, compared with expectations for $209.7M.

Annualized recurring revenue (ARR) grew 32% year-on-year to $806M.

“We are seeing increasing enterprise interest for our Singularity Platform and differentiated AI architecture, which can help improve security and operational resilience,” the company stated Tuesday.

Looking ahead, the company forecasts full-year fiscal 2025 revenue of $815M, an increase from a prior forecast of $808M to $815M, or $811M at the midpoint, while expectations were for $813.7M.

Baird analysts noted, “While the CrowdStrike (NASDAQ:CRWD) outage presents a potential tailwind, we think SentinelOne is taking a prudent approach. Overall, S is executing well on its transition to the new operating model, and strong RPO growth (40% y/y) suggests durable demand and potential upside to the prudent outlook.”

Additionally, Jefferies analysts commented after the report that SentinelOne’s long-term trajectory looks promising; however, they indicated that the outlook for new ARR acceleration in the second half of the year appears challenging. They expected slightly higher ARR growth in Q2 given strong checks and easy comparisons, ultimately raising a caution flag regarding a steep ramp in new ARR in 2H.

Yasin Ebrahim contributed to this report.