Description

SentinelOne: A $1 Billion Reality Check On AI Native Cybersecurity Growth

SentinelOne, a cybersecurity firm focused on AI-native security platforms, reported fiscal 2026 results showing strong growth alongside continued challenges and cautious guidance. The company surpassed $1 billion in annual revenue, representing 22% year-over-year growth, and achieved full-year operating profitability with a 3.5% operating margin, marking its second consecutive year of positive free cash flow. These results indicate progress toward sustainable growth and improved operational discipline. In the fourth quarter, revenue grew 20% year-over-year to $271 million, while Annual Recurring Revenue (ARR) expanded 22%, supported by $64 million in net new ARR. International markets outpaced the broader business with 30% growth and now represent 40% of total revenue. Customer expansion continued, with 153 customers generating over $1 million in ARR, a 20% increase year-over-year. Retention remained solid, including a 96% gross retention rate and 109% net retention among customers with ARR above $100,000.