SentinelOne's order book surges 45% as fiscal Q2 revenue beat fails to hold the tape
A 45% surge in remaining performance obligations to $1.7 billion put SentinelOne (NYSE: S) in focus after fiscal second-quarter results, even as shares retreated on the session despite clearing both the revenue consensus and the company's own forecast range. The company raised its full-year outlook and carries $813 million in cash against no debt. The next concrete reference point is fiscal third-quarter revenue, which the company has guided to $309 million to $311 million.
Key takeaways
- SentinelOne's remaining performance obligations surged 45% year over year to $1.7 billion in its fiscal second quarter.
- Fiscal Q2 revenue rose 21% year over year to $292 million, topping the $290.3 million consensus and the company's own $289 million to $291 million guidance, while adjusted EPS doubled to $0.08.
- The company raised its full-year outlook, holds $813 million in cash with no debt, and guided fiscal Q3 revenue to $309 million to $311 million.
- Despite beating estimates, SentinelOne's shares retreated after earnings, though they remain up roughly 40% year to date.
- SentinelOne trades at a price-to-sales ratio of 6 times, versus 37 times for CrowdStrike and 22 times for Palo Alto Networks.
A 45% surge in remaining performance obligations to $1.7 billion put SentinelOne (NYSE: S) in focus after fiscal second-quarter results, even as shares retreated on the session despite clearing both the revenue consensus and the company's own forecast range. The company raised its full-year outlook and carries $813 million in cash against no debt. The next concrete reference point is fiscal third-quarter revenue, which the company has guided to $309 million to $311 million.
The fiscal Q2 print
Revenue for the quarter reached $292 million, a 21% year-over-year gain that topped the $290.3 million consensus and cleared the company's prior $289 million to $291 million guidance range. Adjusted EPS doubled to $0.08, landing at the high end of its $0.06 to $0.08 forecast. Annual recurring revenue grew 23% to $1.16 billion. Net new ARR for the quarter came in at $56 million, up 4%.
The customer count with ARR of $100,000 or more rose 17% to 1,702. Non-endpoint solutions now account for more than half of total ARR. The Flex licensing program, which lets customers add bolt-on solutions to core subscriptions, crossed 10% of ARR in the quarter. Purple AI and Prompt Security, the company's AI-native security offerings, each tripled their ARR year over year. SentinelOne also reported its third consecutive quarter of cloud security ARR acceleration.
Management said the RPO build is driven by both larger and longer customer contracts. The company does not provide ARR guidance or disclose current remaining performance obligations in its forward outlook, a transparency gap that appeared to weigh on investor sentiment even as the top-line numbers held up.
Setup and what to watch
Cybersecurity demand has broadened after Anthropic reported that its Mythos model identified previously undetected software vulnerabilities. SentinelOne said its opportunity has never been better, citing accelerating momentum with both its core Singularity platform and its newer AI products. The stock trades at a price-to-sales ratio of 6 times, compared with 37 times for CrowdStrike and 22 times for Palo Alto Networks. Whether that valuation gap narrows will depend on whether the RPO backlog converts into accelerating revenue, a question the fiscal third-quarter print will begin to answer.
For the full year, the company expects revenue to grow 20%, landing between $1.2 billion and $1.21 billion, with adjusted EPS of $0.30 to $0.32. Third-quarter adjusted EPS guidance is $0.08 to $0.09. The company said it continues to invest in growth and buy back stock. Shares remain up roughly 40% year to date despite the post-earnings pullback.
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Filed by the newsroom of MarketPR on September 1, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.