SentinelOne Inc Q3 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Saket Kalia - Barclays Services Corp - Analyst : Okay, great. Hey, guys, thanks for taking my questions here. Barbara congrats on your next phase.

Question: Saket Kalia - Barclays Services Corp - Analyst : Tomer, maybe for you, it's great to hear that half of the bookings are now coming from outside endpoint. Can you just maybe talk about which products outside of endpoint are kind of becoming the most material from a new business perspective? And to what extent is Flex enabling that?

Question: John DiFucci - Guggenheim Securities LLC - Analyst : Thank you. Listen, team, this looks like a good strong quarter here, and it's really nice to see that free cash flow, but guide was just a little lighter than we were looking for. I think the Street was looking for. Is there anything to read into that? I only half jokingly asked whether it's because Barry is going to be less focused on growth next quarter in his new role. And just trying to trying to figure that out. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 9:30PM, S.N - Q3 2026 SentinelOne Inc Earnings Call And I guess, at Barbara, we'll miss you here. And it's -- SentinelOne has become pretty consistent here since you've been there, and I think people are starting to understand showed the way your cadence has worked out here. But is there anything other than an opportunity outside of cyber that you can say?

Question: Brian Essex - JPMorgan Chase & Co - Analyst : Hi, good afternoon and thank you for taking the question. Barbara congratulations from me as well. I guess maybe to piggyback on John's question, could we -- could you touch on gross margin, and it looks like the guide calls for a little bit of sequential gross margin compression. Just would love to get your puts and takes on the drivers of that? What's -- what you see in the pricing environment and maybe with the longer-term outlook, how that may or may not have changed after what you've seen this quarter?

Question: Nasr Islam - Deutsche Bank AG - Analyst : Hi, this is Nasr Islam for Brad Zelnick. Tomer, nice quarter on both the new business and the margin front. As you evaluate the breadth of products in the Singularity platform, do you see the need to add further functionality perhaps through further M&A? And relatedly, what are the guardrails of M&A as you balance both profitability?

Question: Meta Marshall - Morgan Stanley - Analyst : Great. Maybe just in terms of -- you kind of noted improvement in execution and just kind of traction with the Flex deal. Just wondering if you could kind of give more details in terms of where you're seeing kind of that strength and with both Flex and with kind of improved execution.

Question: Joseph Gallo - Jefferies LLC - Analyst : Hey guys, thanks. Really appreciate the question. It was great to see the net new ARR growth the past two quarters. Just any commentary on 4Q? And then given you're investing so much in capacity, you're clearly confident on the future. Can we expect net new ARR growth to grow again in the next year? Or how should we think about the glide path of growth into next year?

Question: Fatima Boolani - Citibank Cameroon SA (Douala Branch) - Analyst : Oh, good afternoon. Thank you for taking my questions, and Barbara, congratulations on your next adventure. I wanted to drill in on the net new ARR performance. That 1% growth, can you unpack sort of the puts and takes there? And Barbara, maybe if you can help marry that with some of your commentary in the prepared around net retention rates well into the expansion territory. I'm just sort of trying to reconcile the RPO and booking strength versus maybe a little bit more anemic on the net new ARR side.

Question: Jonathan Ho - William Blair Capital Partners - Analyst : Hi, good afternoon. I just wanted to see if you could give us a little bit of a sense of where we are in terms of AI security adoption and maybe where customers are in terms of that maturity curve adopting some of these new solutions. It sounds like you've had tremendous success. And I just wanted to see maybe what inning we're in, in terms of analogies. Congrats, Barbara.

Question: Mike Cikos - Needham & Company LLC - Analyst : Hey, thanks for taking the questions, guys. I appreciate it. Congrats on the quarter and best of luck to your Barbara. I just wanted to sanity check some of the commentary here and appreciate the consistent messaging on what you guys are communicating on [macro]. But it would be helpful that the margin here with respect to deal timing, macro sales cycles. How did that play out in Q3 versus your expectations? And then to the degree you can elaborate, how was public sector? I know it's a relatively small part of your business, but if that in any way impact how are you thinking about the guidance here as well. Thank you so much.

Question: Zach Schneider - Robert W. Baird & Co Inc - Analyst : Hey guys, this is Zach Schneider on for Shrenik. So you noted the minimal revenue and ARR contribution from Observo next year. But just more from a high level, previously, you talked on how it unlocks a multi ARR opportunity by really eliminating third-party telemetry dependencies. So just curious to hear sort of what benefits have you seen since the acquisition and just tactically how you're positioning Observo versus private vendors and some platform peers and competitive bake-offs?

Question: Adam Tindle - Raymond James Financial - Analyst : Okay. Thank you, and best wishes to Barbara. Tomer, I wanted to just mention, you talked about the partner ecosystem and just to be very blunt, a competitor called out a pretty big displacement on their earnings call just earlier this week, and that was a partner that you had ramped just earlier this year. They're indicating that there's more to come after this. Just wanted to sort of give you a forum to respond to some of that comments on defending that and the notion of more displacements to come? And if you could tie that into how you're thinking about forward growth from here, the ability to maintain this 20% growth, which you're guiding to in Q4, that would be helpful. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 9:30PM, S.N - Q3 2026 SentinelOne Inc Earnings Call