S Shares Jump 7% on Q2 Earnings Beat and Robust Fiscal 2026 Guidance

SentinelOne S shares have gained 7.1% since the company reported its second-quarter fiscal 2026 results on Aug. 28. Growth can be attributed to strong contributions in new customer acquisitions, platform adoption by existing customers, and rapid growth in AI-powered security solutions.In the second quarter of fiscal 2026, S reported earnings of 4 cents per share, which surpassed the Zacks Consensus Estimate by 33.33%. The company reported earnings of 1 cent per share in the year-ago quarter.Revenues were $242.2 million, up 21.7% year over year and beat the consensus mark by 0.07%. The upside can be attributed to the continued adoption of its AI-powered security solutions.As of July 31, 2025, annualized recurring revenues (ARR) grew 24% year over year to $1 billion. ARR determines the annualized revenue run rate of the company’s subscription, consumption, and usage-based agreements at the end of a reporting period. Customers with over $100,000 or more in ARR grew 23% year over year to 1,513 as of July 31, 2025.SentinelOne, Inc. Price, Consensus and EPS Surprise SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. QuoteSentinelOne’s shares have plunged 15.1% year to date against the Zacks Computer & Technology sector’s rise of 10.1%. The raised guidance will help S stock to recover.SentinelOne’s Operating HighlightsAdjusted gross margin in the reported quarter was 79%, which contracted 50 bps year over year.Total operating expenses of $186.1 million increased 13.1% year over year due to elevated research and development (up 29% year over year), sales and marketing (up 5.8% year over year), and general and administrative expenses (up 15.3% year over year).Non-GAAP operating margin was 2.2% in the fiscal second quarter, an increase from the loss of 3.2% in the year-ago quarter.SentinelOne’s Balance Sheet Remains StrongAs of July 31, 2025, SentinelOne had cash, cash equivalents, and investments of $1.2 billion.Free cash outflow jumped 31.5% year over year to $7.1 million. Free cash outflow margin remained unchanged year over year at 3%.S Unveils Q3 View and Raises Fiscal 2026 GuidanceFor third-quarter fiscal 2025, SentinelOne expects revenues of $256 million, indicating growth of nearly 22% year over year.Non-GAAP gross margin is expected to be 78.5%.For fiscal 2026, revenues are forecasted to be between $998 million and $1 billion, down from the prior projected range of $996 million to $1 billion, representing 22% year-over-year growth.Adjusted gross margin is expected to be between 78.5% and 79% for fiscal 2026.For fiscal 2026, the company expects the adjusted operating margin to be 3%.SentinelOne’s Zacks Rank & Stocks to ConsiderCurrently, SentinelOne has a Zacks Rank #4 (Sell).Alkami Technology ALKT, Arista Networks ANET, and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy), APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Alkami Technology shares have lost 29.9% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 58 cents per share, up by 7.4% over the past 30 days, implying growth of 100% from the year-ago quarter’s reported figure.Arista Networks shares have gained 23.2% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at $2.81 per share, up by 9.7% in the past 30 days, indicating year-over-year growth of 23.79%.Amphenol shares have gained 61.2% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has increased 1.34% to $3.02 per share in the past 30 days, indicating year-over-year growth of 59.79%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report SentinelOne, Inc. (S): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Alkami Technology, Inc. (ALKT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks