Cybersecurity AI platform provider SentinelOne (NYSE: S) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 20.2% year on year to $271.2 million. The company expects next quarter’s revenue to be around $277 million, close to analysts’ estimates. Its non-GAAP profit of $0.07 per share was 19.1% above analysts’ consensus estimates.
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SentinelOne (S) Q4 CY2025 Highlights:
- Revenue: $271.2 million vs analyst estimates of $271.1 million (20.2% year-on-year growth, in line)
- Adjusted EPS: $0.07 vs analyst estimates of $0.06 (19.1% beat)
- Adjusted Operating Income: $15.5 million vs analyst estimates of $13.64 million (5.7% margin, 13.7% beat)
- Revenue Guidance for Q1 CY2026 is $277 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2027 is $0.35 at the midpoint, beating analyst estimates by 17.5%
- Operating Margin: -29.5%, up from -35.6% in the same quarter last year
- Free Cash Flow was -$2.31 million, down from $15.9 million in the previous quarter
- Customers: 1,667 customers paying more than $100,000 annually
- Annual Recurring Revenue: $1.12 billion vs analyst estimates of $1.12 billion (21.6% year-on-year growth, in line)
- Market Capitalization: $4.81 billion
“We surpassed the $1 billion revenue milestone, growing 22% year-over-year, and achieved full-year operating profitability – a strong close to fiscal year ’26,” said Tomer Weingarten, CEO of SentinelOne.
Company Overview
Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, SentinelOne grew its sales at an incredible 60.8% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. SentinelOne’s annualized revenue growth of 27% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, SentinelOne’s year-on-year revenue growth of 20.2% was excellent, and its $271.2 million of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 20.9% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 19.8% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and implies the market is baking in success for its products and services.
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Annual Recurring Revenue
While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable.
SentinelOne’s ARR punched in at $1.12 billion in Q4, and over the last four quarters, its growth was fantastic as it averaged 23.2% year-on-year increases. This performance aligned with its total sales growth and shows that customers are willing to take multi-year bets on the company’s technology. Its growth also makes SentinelOne a more predictable business, a tailwind for its valuation as investors typically prefer businesses with recurring revenue. 
Enterprise Customer Base
This quarter, SentinelOne reported 1,667 enterprise customers paying more than $100,000 annually, an increase of 95 from the previous quarter. That’s quite a bit more contract wins than last quarter and quite a bit above what we’ve observed over the previous year. Shareholders should take this as an indication that SentinelOne’s go-to-market strategy is working well.
Key Takeaways from SentinelOne’s Q4 Results
We were impressed by SentinelOne’s optimistic full-year EPS guidance, which blew past analysts’ expectations. We were also happy with next year’s revenue guidance. On the other hand, its EPS guidance for next quarter missed and its revenue guidance for next quarter was in line with Wall Street’s estimates. Zooming out, we think this was a mixed quarter. Investors were likely hoping for more, and shares traded down 4.3% to $13.25 immediately after reporting.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
