SentinelOne announced its financial results for the first quarter of fiscal year 2026, ended April 30, 2025, on May 28, 2025. Revenue increased 23% year-over-year to $229 million, exceeding management's expectations. Annualized Recurring Revenue (ARR) grew 24% year-over-year to $948.1 million.
The company reported a GAAP net loss of $208.2 million, significantly higher than the $70.1 million loss in Q1 FY2025. This was primarily due to a $133.5 million discrete income tax provision related to ongoing Advance Pricing Agreement negotiations with U.S. and Israeli tax authorities.
Despite the GAAP loss, non-GAAP operating margin improved to negative 2%, a four percentage point improvement year-over-year, and free cash flow reached a record 20% margin. The board of directors also authorized a $200.0 million share repurchase program, reflecting confidence in long-term growth.
For the full fiscal year 2026, SentinelOne trimmed its revenue guidance to between $996 million and $1,001 million, down from the previous range of $1,007 million to $1,012 million. This adjustment reflects cautious spending by businesses amid economic uncertainty and includes an anticipated $10 million churn headwind from retiring a legacy deception solution.
The company expects to achieve a non-GAAP operating margin between 3% and 4% for the full year FY2026, with Q2 FY2026 revenue guided at $242 million and a non-GAAP operating margin at breakeven. Management noted improved net new ARR trends in May following a softer April.
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