Hello, and welcome to the SentinelOne, Inc. Q4 FY 2026 Earnings Conference Call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now turn the call over to Saad Nazir, Head of Investor Relations.

Good afternoon, everyone, and welcome to SentinelOne, Inc.'s earnings call for the fiscal year ended 01/31/2026. With us today are Tomer Weingarten, CEO, and Barry Paget, Interim CFO. Our press release and an earnings presentation were issued earlier today and are posted on the Investor Relations section of our website. This call and accompanying slides are being broadcast live via webcast, and a replay will be available on our website after the call. Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements about financial performance and future events, including our guidance for the fiscal first quarter and full fiscal year 2027, as well as long-term financial targets. We caution you that such statements reflect our best judgment based on what is currently known to us, and that our actual results or events could differ materially. Please refer to the documents we file from time to time with the SEC, in particular, our quarterly reports on Form 10-Q and our annual report on Form 10-K. These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements. Any forward-looking statements made during this call are being made as of today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons why actual results may differ materially from those anticipated, even if new information becomes available in the future. During this call, we will discuss non-GAAP financial measures, and all comparisons made are year over year unless otherwise noted. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the GAAP and non-GAAP results, other than with respect to our non-GAAP financial outlook, is provided in today's press release and in our earnings presentation. These non-GAAP measures are not intended to be a substitute for our GAAP results. Our financial outlook excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets, acquisition-related compensation costs, restructuring charges, gains on strategic investments, impacts of the previously announced Italian tax settlement, and income tax provision which cannot be determined at this time and are therefore not reconciled in today's press release. And with that, let me turn the call over to Tomer Weingarten, CEO of SentinelOne, Inc.

Good afternoon, everyone, and thank you for joining our fourth quarter earnings call. Fiscal 2026 was a landmark year for SentinelOne, Inc. We achieved a $1 billion revenue scale, growing 22% year over year, and delivered full-year operating profitability, a significant milestone towards profitable growth. In Q4, our total ARR grew 22%, driven by strong new logo acquisition and expansion with existing customers. We delivered $64 million in net new ARR in Q4, a company record. This marks our third consecutive quarter exceeding ARR expectations, showing execution consistency and positive growth. We drove about half of our new business to new logos, showing a balanced split between new logo acquisition and expansion within our existing customer base. We are gaining traction in the most critical domains of cybersecurity—both AI for security and security for AI. We are helping organizations advance their digital transformations securely and intelligently. SentinelOne, Inc. offers the only cybersecurity platform that delivers disunifications—truly. AI represents a significant TAM expansion and a long-term tailwind for our business. From early on, AI-native security has been foundational to our platform architecture. This early advantage positions us to emerge as the category winner in the AI era across more than a $100 billion market opportunity. We have established SentinelOne, Inc. as a clear technology leader in cybersecurity. Our relentless focus on delivering AI-powered innovations that truly unify security, data, and automation has positioned us at the forefront of the industry. As we enter the new fiscal year, we are accelerating our path towards achieving the Rule of 40 driven by durable growth and higher profitability. Now, let us dive deeper into the details of our quarterly performance. We are winning new logos and expanding our footprint across diverse platform categories. Enterprises are choosing the Singularity Platform for unified AI-native security that…

Thank you, Tomer, and thanks, everyone, for joining us today. Let us review the details for Q4, the full fiscal year 2026, and our guidance for Q1 and fiscal year 2027. As a reminder, all comparisons are year over year, and financial measures discussed here are non-GAAP unless otherwise noted. Fiscal year 2026 was a transformational year for SentinelOne, Inc., highlighted by two major financial milestones. Firstly, we scaled the business past $1 billion in revenue, growing 22% year over year. Secondly, we achieved full-year operating profitability, driving a 600-plus basis point year-over-year improvement to expand our operating margin to 3.5%. Let us review the financial performance of our fourth quarter. In Q4, our revenue grew 20% year over year to $271 million. International markets grew 30% and represented 40% of total revenue, reflecting strong international demand and a growing global footprint. In Q4, our total ARR grew 22%, and we added a record $64 million in net new ARR, which exceeded our expectations. These results were driven by a balanced split between new logo acquisition and platform adoption by existing customers. As we continue our strategic shift upmarket, our ARR per customer reached a new company record. We are seeing strong momentum at the top end of the market, as our cohort of customers with ARR of $1 million or more grew 20% year over year to 153 customers in Q4. Additionally, customers with ARR of $100,000 or more grew 18% to 1,667. Furthermore, retention rates across our large customers remain strong, underscoring the mission-critical nature of the Singularity Platform. For customers with $100,000 or more in ARR, our gross retention rate was 96% in Q4, and our dollar-based net retention rate for these customers was 109%, driven by these large organizations continuing to adopt the broader platform and…

Thank you. At this time, if you would like to ask a question, please click on the Raise Hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. As a reminder, we are allowing analysts one question today. We will wait one moment to allow the queue to form. Our first question comes from Brian Essex at JPMorgan. Please go ahead with your question.

Hi, good afternoon, and thank you for taking the question. Maybe for Tomer, I would love to understand some of the dynamics around the growth that you have had this quarter, particularly in light of the lower sales and marketing growth. What percentage of the deals were partner-led or partner-influenced, and what are the plans for hiring and product and expectations for productivity as you move through fiscal 2027?

Thanks for the question, Brian. We delivered record fourth-quarter net new ARR, 6% year-over-year growth, and probably the strongest sequential growth we have had in the last 24 months. It really demonstrates more than anything execution consistency and solid demand pretty much across the board. I would say that there was not any big change between our business with partners and our business with end customers. We are doing larger deals, and I think that is probably reflected. Flex is taking, I think, a more pronounced part of our overall bookings. So, all in all, I would say the dynamic is one that we have seen throughout the quarters and throughout the year. As we look into next year, when we review how we want to focus, I think we are pretty clear that we are on a quest to optimize. I do not think you are going to see us grow headcount in a significant way, and it will imply that sales productivity, which is reflected in the margin guide, is going to get better. We are clear on our continued upmarket trajectory. We are clear on the need and the desire to do more with our partner base. We are clear about the potential in our partner base. You can see some of the figures with our growth with our MSP partners—top 10 partners growing 75% year over year. Obviously, there is a lot of potential both in our partner base and with our move upmarket. So, all in all, we plan to do much of the same this year in an improved manner with an optimized sales force.

Our next question comes from John Stephen DiFucci at Guggenheim. Please go ahead with your question.

Thank you. Since Brian asked about top line, I am going to ask about the bottom line. It is just a little confusing. Like, this quarter, and in the first quarter, profit margins are a little lower than I think people were looking for—at least we were. But for the year, they look great. So if you could just explain that a little bit, maybe Barry, again, just so we understand what is happening in the model.

Yeah, John. On the free cash flow side, we feel pretty comfortable on the cash collection. We have seen meaningful improvement over the past few years. That being said, it can be a little lumpy just in terms of larger deals and when they fall into a particular quarter. And as those larger deals roll out maybe over months and quarters as opposed to days, like smaller deals.

Our next question comes from Meta Marshall at Morgan Stanley. Go ahead with your question.

Great, thanks. I just wanted to ask—clearly, a lot of success selling with the 65% of customers having three or more solutions. How do you, in combination with maybe NRR ticking down a hair, think about the ability to continue to add new or get further adoption of new products into the base? Thanks.

Absolutely. We definitely think that this is a source for additional growth for us. We are very stable on the NRR front. I think the biggest thing I would call out there is that, for us, it means that we are doing more new logo business, which is exactly what we want to see, and we have executed that strategy for the last few years. It is not going to change this year. So we are really driving those in tandem. And what you can see is that not only are we creating more and more adoption within our customer base, even with that, our customer base is still relatively underpenetrated. We have tremendous capabilities. Our platform is incredibly broad. That just means that for a lot of these new logos that we are just starting the journey with, the expansion opportunity is really in the future. Which is great, which really means that we can land and onboard new customers, and then, with time, we will see more and more from the customer base. That is exactly the dynamic we want to see. That is exactly what is reflected in these results.

Our next question comes from Nasr Islam at Deutsche Bank, on for Brad Zelnick. Please go ahead with your question.

Hi, this is Nasr Islam on for Brad Zelnick. Thank you for taking the question. We have heard from you, Tomer, and your peers in recent quarters about the importance of Endpoint security, especially in the GenAI era. Can you provide an update on how Endpoint progressed in the quarter and any changes in the competitive landscape that you are seeing, if any?

Of course. Endpoint still remains a strong growth driver for us. We grew double digit, and that is non-trivial in the market today. We are still gaining share in Endpoint, and there is still a lot to go after in terms of incumbent providers. It is clear that the best control point right now for GenAI is actually attached to those same endpoints. So when you look at us selling AI security, I think the success we are seeing there is tied to our ability to deploy that within minutes, sometimes on those exact same endpoints—whether our agent is already there or not. Our ability to continue and expand our Endpoint footprint is what makes our AI security product incredibly successful. So, all in all, not only are you gaining the best and the most complete telemetry from the endpoint today, it is also becoming one of the only true control points to regulate what employees, what the workforce, is doing with generative AI—block it, sanitize it, make sure there is no data leakage, put the right guardrails—and that is exactly what we are doing with our AI security platform and with Prompt Security specifically.

Next question comes from Shrenik Kothari at Baird. Please go ahead with your question.

Yeah, thanks for taking my question. So, Tomer, you brought in Sonalee. As she steps in, what are the top, say, three priorities you have explicitly asked her to focus on first? And then, just related to, kind of financially, how should investors think about the next phase of the model under her? Thanks a lot.

Of course. Thank you for the question. We are incredibly excited to welcome her. Her focus is going to be durable growth and acceleration in our go-to-market. I think what we are seeing right now is growing demand for our platform with multiple avenues for growth. We have talked about AI security growing triple digit. We have talked about on-prem, which is a new revenue vector for us, now growing triple digit as well, and infrastructure deals that are also growing triple digit. So, obviously, her job is going to be to balance that with continuing to improve and hone in on our entire go-to-market and sales and marketing spend and expense. There is no surprise here that as we look into next year and the coming year, the landscape is changing in terms of what customers are looking for. And it is very clear that we have some of the most unique solutions right now for some of the most urgent problems in the market. So, as we look at this year, it is a lot about realigning a lot of our resources to go after these opportunities. As we improve our business, you can see some of that already reflected in our operating margin. This is the trajectory we are on. We are accelerating our path to even better profitability. We are optimizing on cash flow. I think these are the things that we will collectively be focused on.

Our next question comes from Patrick Edwin Colville at Scotiabank. Please go ahead with your question.

Thank you so much. And, Tomer, let me ask this one to you. Nice reacceleration in new ARR this quarter. You gave us the sort of breadcrumb that you expect a year-on-year improvement in new ARR in fiscal 2027. So, two parts, if I may. One is, can you unpack that last bit a little bit more to provide any more color? And then, what would be the driver of that? Is it kind of core Endpoint—to your point earlier that there is this renaissance in spend on Endpoint—or is it that plus these emerging products and the multiple tailwinds coming together in fiscal 2027?

Yes. Let me try and unpack that. Obviously, that is exactly what we want to see. We want to improve net new ARR. You have seen a little bit of that in Q4, but that is what we are looking at for this coming year. On top of that, we are also starting to see a seasonality change. We are moving from this 40/60 first-half/second-half dynamic we have had in the past couple of years more to roughly 50/50. So that means that the first half of the year is very solid, and that has positive impact on growth for the year for both revenue and ARR. These are some of the dynamics that we are seeing there. Some of it is coming from Endpoint. I would not call it the full renaissance, to be honest, but there is definitely more traction in Endpoint. I think if you are seeing some of our businesses crossing the $100 million ARR mark and still accelerating in a pretty significant way, those are our sources of added revenue growth and added ARR growth. So, all in all, we believe that an improved net new ARR is a good starting point for us in our revenue guide.

Our next question comes from Richard Poland at Wells Fargo. Please go ahead with your question.

Hey, thanks for taking my question. I guess, just on the gross margin side, I noticed that gross margin ticked down a little bit in the quarter, but I think it was maybe a touch better than expectations. As we look forward to next year, could we see that start to stabilize or tick up, or is there anything underlying there that we should think about?

Yes, of course. I would say our gross margins are incredibly stable. They are also best in industry, so they are incredibly high. We put it exactly at the high end of our range of our long-term targets. So, all in all, we feel like they are stable. They are going to continue to be stable. We do not forecast any change in that.

Our next question comes from Michael Joseph Cikos at Needham. Please go ahead with your question.

Thanks for taking the question here. Tomer, if I could come back to the prepared comments and the opening script. Great to hear about the seven-figure deal over at Cloudflare displacing your next closest competitor. Can you discuss that a little bit more as far as how Cloudflare came to you, how the deal came together—again, just given their positioning in the software ecosystem, they are thought of as being pretty market leading? I would love to get some more color there. Thank you.

Of course. It is a combination of the set of capabilities that we have today that—through the prepared remarks—we tried outlining how unique the capabilities that we have today are, especially at scale. So when customers are looking to add and prepare themselves for adopting more generative AI and more AI agents, the most advanced ones really need these capabilities now. They cannot buy off a demo. They cannot buy off something with a roadmap. They need something tangible that works today and works at scale and is proven. And that is exactly what Prompt Security and Purple AI bring to bear. These are already fully deployed, fully scalable products that are covering right now millions of devices and assets globally. So that drives a lot of demand from customers of all competitors. And in the case of Cloudflare, I think efficacy was a big deal, the ease of deployment, coverage for systems of all operating systems—these were some of the key things that they wanted to find. I think they also wanted a like-minded partner that can move fast with them in AI. And, as you pointed out, despite them being a leading partner for some of our competitors, they have chosen the best technology that they could. And doing this at a scale where you need to be completely flawless in your transition to create no interruption, I think that was also a very impressive feat by both teams, and I think that punctuates the win.

Our next question comes from Shaul Eyal at TD Cowen. Please go ahead with your question.

Thank you. Good afternoon, everybody. Tomer or Barry, can you talk to us about the sources of operating leverage and margin for fiscal 2027, as we think about double digit for the year?

Sure.

Happy to share here. A couple of things that we are super focused on. Firstly, really sharpening the focus on the highest-yielding go-to-market opportunities. You heard Tomer talk about some of the product lines and some of the businesses that are rapidly growing for us—some of them in the triple digits—making sure that we are investing behind those and giving them the oxygen they need. And then, secondly, not necessarily germane just to us, but integrating AI throughout our business and our business operations. We are seeing meaningful productivity gains across the board—everything from engineering and development to how we serve customers to how we just run the internal organism itself.

I would just add to that. You have seen us through the past couple of years also taking pretty hard decisions on what not to invest in and what to potentially deprecate and prune away. I think these are the decisions we are going to continue to make. You have seen us do that with a couple of product lines last year. We do not expect the exact same thing this year, but we are definitely honing in on more areas where we see higher yield. So I think it is not farfetched to see us narrowing our focus, at least in go to market, on not only the most yielding but the most important parts of our platform—what is the most important right now for customers. So, all in all, we have not grown our headcount. We have not inflated our ranks in the past couple of years. That is definitely not going to happen this year. We are finding more and more ways to become more productive with AI. It is already happening. A meaningful amount of the code we generate today is generated with AI. That has tremendous impact on us. We are a big R&D shop. We are a big innovation hub. That means that we can build more with less, we can take products to market faster, we can iterate and get better outcomes to customers. All of those are going to help us also drive benefits to the bottom line as well.

Our next question comes from Roger Foley Boyd at UBS. Please go ahead with your question.

Great, thanks for the question. Tomer, it looked like it was a pretty strong quarter overall for new customer acquisition. You noted, I think, half of new business came from new customers. And against that, you had a 50% attach rate of Purple. Any directional color on what that attach rate looks like with new customers, and to what extent are you finding that Purple is driving these new customer wins and really influencing your win rates in areas like Endpoint? Thanks.

Of course. First of all, it is pretty balanced. We are seeing the uptake both from existing customers and new customers. I think we mentioned a couple of earnings calls ago that we created a new bundle, and we took our Complete bundle and made it a Complete AI bundle, basically adding in some of the Purple AI capability. That is creating a nice differentiator for us in the mass market. So that is driving some of that attach. But, at the end of the day, it is really clear—when you can create 60% faster outcomes, when you can have 300% plus return on investment, it becomes almost a no-brainer. If you are using one of these things, you are actually saving money, and the economics are favorable for customers. That is the main driver behind the Purple uptake. We are also— as I have said in the past—continuously adding more capabilities to the Purple suite. We are adding more and more agentic capabilities that are completely integrated into the platform. We do not require customers to buy another product or to deploy something else or to build their own agent, or we just give them a studio. We are giving them complete integrated AI capabilities they can turn on with one click of a button. That seamlessness—that user experience—is resonating in the market.

Our next question comes from Joseph Anthony Gallo at Jefferies. Please go ahead with your question.

Hey, thanks for the question. It was great to see the $130 million in Data ARR. Can you talk through the sustainability of growth in that business? And then, Tomer, regarding SIEM, how do you think that market evolves in an LLM-based world? Does it become more or less important? Is there any risk of disruption? Thank you.

Thank you for the question. Our Data business is going to go only one way, which is up. That is terabytes and terabytes and petabytes of data that we are seeing down our pipeline. There is a very familiar dynamic in the data space where the initial land is just a piece of customers' overall data needs, and as they onboard our data lake, it is the starting point for them into how much more they can put into it over the years. We are starting to see those expansion opportunities pop up. We are absolutely seeing more and more demand for our data lake capability. Specifically for SIEM—and I think there is a small nuance here—SIEM, you can think about it as its front end for security operations that you put on top of the data lake. I would say that certain customers still want that front end. They want those capabilities. At the same time, what we are seeing more and more is that when we apply some of our Purple suite agentic operations directly on the data—directly on the ingested data—now with Observo integrated into it, the ability to ingest data in real time and apply LLMs that are on the backbone of Purple AI to then orchestrate autonomous operation, to us that is the future of where cybersecurity is going to go. And I am saying the future, but it is also happening right now for certain customers. So I think it is really a question of what models you are going to support for customers. Some customers are going to want more controls, more dashboards, more of that legacy experience—I would call that the SIEM experience. Other customers are much more focused on automation, on embedding LLMs and agentic workflows into their data ingestion as close as possible to the point of ingestion, and that, to us, is almost a new model for cybersecurity that maybe, in the course of the next few years, is going to make SIEM something that is less mandatory than it is today. But right now, what we see in the market is both approaches, and we are doing what customers are asking us to do.

Our next question comes from Eric Heath at KeyBanc. Please go ahead with your question.

Hey, thanks for taking the question here, and nice finish to the year. Maybe Barry or Tomer, could you speak to the linearity in the quarter that you saw, given that the DSOs were a little bit higher than they have been—revenue being in line with your guidance? Thanks.

Yep. I think the revenue beat for us, the entire year, was very minimal beats, I would say. Q4 was a little bit more back-end loaded. I think you see that as well reflected. As Barry mentioned, some of the collections came a bit later than we wanted, but nothing too dramatic. I think that is the full extent of the dynamic that we have seen. Otherwise, the other thing—obviously, when you are not getting these collections in time—it is going to show up a bit later. So you should expect something a bit more healthy maybe in Q2. And I think, again, I called out the changing seasonality for us, so that is another dynamic that is going to be at play. It is probably going to look a bit different for us this year in a very positive way, I should say. So these are the fullest dynamics that we are seeing.

Our next question comes from Adam Tindle at Raymond James. Please go ahead with your question.

Okay, thank you. I just wanted to continue on that last comment there, Tomer, on net new ARR and seasonality. I think you said earlier 50/50 for first half/second half. And if I am doing the math right for the full year, you are probably going to be somewhere in the neighborhood of $200 million of net new ARR—correct me if I am wrong there. But I think that would imply $100 million or so in the first half, which would be very strong, I think up over 20%. I know it is important with Sonalee coming on, and, under prior CFOs, we had early stumbles in terms of relative to expectations and numbers and just wanting to avoid that. You talked on the call about gaining credibility, which you are certainly doing as you are executing. So I wanted to give this a forum to flush out those net new ARR comments so we do not get too far ahead of ourselves for the first half as Sonalee comes on. Thanks.

Of course. Good questions overall. I would say, first, I think you are not wrong on the net new ARR number—probably a slight improvement over that. And I think the seasonality is just what we have line of sight to right now and just a very solid start for the year. Once we are able to transact earlier in the year, you can do the math of what that means for the rest of the year, and that is what we are seeing. That is what is happening. So we are just calling it out. And, as I mentioned, it is just a good starting point for us. We are starting to maintain that consistency, and I think that should persist. We do not see a reason why it would not.

Our next question comes from Jonathan Frank Ho at William Blair. Please go ahead with your question.

Hi. I wanted to dig a little bit into Wayfinder, and could you give us a sense of what some of these enhancements like human-plus-AI capabilities and Intel—how does that allow you to reimagine modern MDR solutions? Thank you.

Thank you. Great question. I think that is exactly it. It is really clear that the role of MDR is shifting. If MDR, in past years, was really manual human work to sift through alerts, with the increased automation and autonomous action of our platform, our MDR analysts and overall service are graduating to be more of a supervision layer, and that is helping us not only scale, but also achieve much better outcomes for customers. And I think, more than anything, it is really clear that we all need to still establish a level of trust when we talk about autonomous agents. Obviously, the margin of error is quite big with some of what these autonomous agents are doing. So, for us, a good way to control that and a good way to make sure that agents always stay within their guardrails—that all autonomous action and critical action are always happening with human supervision—is attaching services like Wayfinder to monitor these agentic actions that are happening, and we are doing so in a highly scalable way. Once again, that is something that resonates with customers. Right now, with us, they can onboard agentic workflows and have humans regulate that, and that is a big thing. We are not just offering them a piece of technology. We are offering them complete managed supervision of their security stack.

Our next question comes from Ittai Kidron at Oppenheimer & Co. Please go ahead with your question.

Hey, guys. For me, maybe one for you, Tomer, and one for you, Barry. Tomer, on your side, you clearly have a very broad portfolio at this point, and it is nice to see the traction there. Can you talk about how the comp plan for quotas for salespeople is changing because of that, and what are you incentivizing, and how do you get salespeople focused on the right thing? And then for you, Barry, with your initial guide for fiscal 2027 and going back to the previous questions, in what way are you more conservative, or in what way is your guidance philosophy right now for 2027 different from the exercise you went through in 2026?

Thank you for the questions. Comp plans have not changed in a dramatic way. I just want to remind everybody that we always had this component that we called emerging products, and we are just changing what we put in that basket of emerging products, and we like the behavior that we are seeing. We also see some natural affinity to what customers are asking for, and we are making sure that we are aligning that basket of emerging products to reflect what is happening right now in the market and what we believe are the best products that are the best fit to what customers are trying to solve right now. You are not going to be surprised that you find things there like AI security. You are not going to be surprised that Data is still there. So, obviously, that is a great tool for us—has been and will continue to be—to drive people in the right direction and where the market is currently showing the most demand.

And just to your question on guidance overall, I think this is the right starting point for the year. We are really comfortable with the guide. If you look at the things that are supporting it, it is a few things: solid pipeline, strategic partnership opportunities, and we have been talking a lot about the rising contribution of our emerging solutions—AI, Data, Cloud, Wayfinder, others. So we feel like we are at the right spot.

We have no further questions at this time. We will turn the call back over to Tomer Weingarten for closing remarks.

Thank you all for joining us today, and talk to you next quarter.