SentinelOne, Inc. (NYSE: S) shares surged 8.80% in pre-market trading on Friday, following the cybersecurity company's impressive second-quarter fiscal year 2026 financial results released after the market close on Thursday. The strong performance, highlighted by better-than-expected earnings, revenue growth, and a significant milestone in annual recurring revenue (ARR), has bolstered investor confidence in the company's AI-powered cybersecurity platform.

For the quarter ended July 31, 2025, SentinelOne reported adjusted earnings per share of $0.04, surpassing the analyst consensus estimate of $0.03. This marks a substantial improvement from the $0.01 per share reported in the same period last year. The company's revenue climbed 22% year-over-year to $242.2 million, slightly beating the consensus estimate of $242.17 million. Notably, SentinelOne's ARR increased 24% year-over-year to reach $1.0 billion, a significant milestone that underscores the company's growing market presence and customer retention.

Adding to the positive sentiment, SentinelOne raised its full-year revenue guidance for fiscal year 2026 to between $998 million and $1.002 billion, up from the previous range of $996 million to $1.001 billion. The company also reported strong customer growth, with the number of customers generating ARR of $100,000 or more increasing by 23% to 1,513. This expansion in the customer base, particularly among larger enterprises, demonstrates the growing adoption of SentinelOne's AI-powered cybersecurity solutions in an increasingly digital and threat-prone environment.

Tomer Weingarten, CEO of SentinelOne, commented on the results, stating, "We surpassed $1 billion in ARR and delivered record net new ARR, continuing to deliver robust growth and platform adoption across AI, data, cloud, and endpoint. Our second-quarter results highlight the momentum of our AI-powered platform, strengthening competitive position, and growing product differentiation." The strong performance and optimistic outlook have clearly resonated with investors, driving the significant pre-market stock price increase and setting a positive tone for the company's future growth prospects in the competitive cybersecurity market.