SentinelOne Inc. (NYSE:S) posted second-quarter fiscal 2026 results that modestly outpaced expectations, prompting several Wall Street analysts to reiterate bullish views and lift price forecasts.
Revenue came in at $242.2 million, up 22% year-over-year and in line with consensus estimates, while non-GAAP EPS of 4 cents beat forecasts of 3 cents. Annual recurring revenue (ARR) grew 24% to $1 billion for the second straight quarter, and large customers spending more than $100,000 annually increased 23% to 1,513.
SentinelOne ended the quarter with $1.2 billion in cash and investments. Management guided third-quarter revenue of $256 million and raised full-year revenue expectations to $998 million-$1.002 billion, up slightly from prior forecasts and closely aligned with analyst projections.
Related: SentinelOne Q2 Earnings: Revenue, EPS Beat Estimates, ARR Crosses $1 Billion, Company Raises Outlook On AI Momentum
WestPark Capital analyst Casey Ryan reaffirmed a Buy rating and $25 price forecast, emphasizing SentinelOne’s ability to combine steady top-line growth with improving profitability. He highlighted gross margins rising to 73.3%, keeping the company on track toward its 75-80% long-term forecast.
Ryan praised the AI-powered Singularity platform as a differentiator against rising cyber threats and staffing shortages and added that SentinelOne’s consistent execution and balance sheet strength make it a potential takeover candidate for either strategic or private equity buyers.
Needham & Company analyst Mike Cikos reiterated a Buy and raised his forecast to $23, describing SentinelOne’s quarter as a turning point in momentum. He highlighted record net-new ARR growth of 90% sequentially, well above expectations, fueled by strength across new and existing customers.
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Cikos noted Purple AI’s attach rates above 30% and triple-digit bookings growth as evidence of accelerating adoption, while the Data segment continues to scale after surpassing $100 million in ARR last quarter.
He also pointed to the early success of SentinelOne Flex, the company’s new licensing model, which has already landed an eight-figure deal. While the $180 million acquisition of Prompt Security creates a short-term margin headwind (~80 bps), Cikos sees it strategically enhancing the company’s generative AI security portfolio.
Other analysts also raised their forecasts following the print. UBS’ Roger Boyd maintained a Neutral rating and lifted his price forecast from $19 to $21. Wells Fargo’s Andrew Nowinski reiterated an Equal-Weight rating while moving his forecast from $18 to $19. Barclays’ Saket Kalia kept an Equal-Weight stance and raised his forecast from $19 to $21. Baird’s Shrenik Kothari remained more constructive with an Outperform rating and a higher forecast of $23, up from $21.