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SentinelOne (S)
NYSE:S
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SentinelOne
(NYSE:S)
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Rating:61Neutral
Price Target:
$16.50
▲(12.94% Upside)
SentinelOne's overall stock score is driven by strong earnings call performance, highlighting significant ARR and revenue growth, and high operating margins. However, financial performance challenges, particularly in profitability and cash flow, along with a bearish technical outlook and stretched valuation, weigh on the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.
Innovative Product Developments
Innovation in product offerings enhances competitive advantage, driving customer engagement and future revenue potential.
Robust ARR and Customer Expansion
Strong ARR growth reflects successful customer acquisition and retention, ensuring predictable and recurring revenue streams.
Negative Factors
Profitability Challenges
Ongoing profitability issues may hinder investment capacity and long-term financial health, requiring strategic cost management.
Leadership Transition
Leadership changes can disrupt strategic continuity and may impact investor confidence during the transition period.
Cash Flow Generation
Weak cash flow generation limits financial flexibility and could constrain growth investments and operational resilience.
SentinelOne (S) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.92B
Dividend YieldN/A
Average Volume (3M)8.57M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth24.09%
EPS Growth-34.25%
CountryUS
Employees2,800
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.07
Shares Outstanding333,302,670
10 Day Avg. Volume15,177,376
30 Day Avg. Volume8,570,944
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)4.52
Price to Sales (P/S)9.18
P/FCF Ratio1.14K
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue5.54
Enterprise Value/Gross Profit7.42
Enterprise Value/Ebitda-19.86
Forecast
1Y Price Target
$21.26Price Target Upside45.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SentinelOne Business Overview & Revenue Model
Company DescriptionSentinelOne (S) is a cybersecurity company specializing in autonomous endpoint protection solutions. Founded in 2013, the company operates in the cybersecurity sector, offering innovative products that leverage artificial intelligence to detect, prevent, and respond to cyber threats in real-time. Its core offerings include endpoint protection platforms (EPP), endpoint detection and response (EDR), and threat intelligence services, catering primarily to enterprises and organizations seeking to enhance their cybersecurity posture against evolving threats.
How the Company Makes MoneySentinelOne generates revenue primarily through subscription-based models for its cybersecurity software solutions. The company offers various pricing tiers based on the number of endpoints and the level of service required, which allows for predictable recurring revenue. Additional revenue streams include professional services, such as implementation and training, as well as threat intelligence subscriptions. Strategic partnerships with cloud service providers and technology integrators also contribute to its earnings, enabling SentinelOne to expand its market reach and enhance its service offerings.
SentinelOne Key Performance Indicators (KPIs)
Any
Annual Recurring Revenue
Measures the predictable revenue generated from subscriptions or contracts over a year, highlighting the company's financial stability and growth potential through consistent income streams.
Measures the predictable revenue generated from subscriptions or contracts over a year, highlighting the company's financial stability and growth potential through consistent income streams.
Data provided by:
The Fly
The FlySentinelOne Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 17, 2026
Earnings Call Sentiment Positive
SentinelOne showed strong financial performance in Q3 with notable ARR and revenue growth, high operating margins, and successful product innovations. However, concerns about the lighter-than-expected Q4 guidance and the CFO's departure introduce some uncertainty. Overall, the highlights significantly outweigh the lowlights.Q3-2026 Updates
Positive Updates
Strong Revenue Growth
SentinelOne's revenue grew 23% year-over-year to $259 million, with international markets growing 34%, reflecting balanced growth and an expanding global footprint.
Robust ARR and Customer Expansion
Annual Recurring Revenue (ARR) grew 23% year-over-year, with net new ARR of $54 million in Q3. Customers with ARR of $100,000 or more grew 20% to 1,572, and ARR per customer reached a new company record.
High Operating and Net Income Margins
Operating margin reached 7% in Q3, improving by nearly 1,200 basis points year-over-year, and net income margin increased to 10% from breakeven in the prior year quarter.
Sustained Free Cash Flow Margin
SentinelOne achieved a free cash flow margin of 6% in Q3, marking an inflection point for sustainable quarterly free cash flow margin.
Innovative Product Developments
Strong growth in emerging platform solutions: Purple AI achieved a record attach rate exceeding 40%, and data solutions bookings growth accelerated to triple digits year-over-year.
Strategic Acquisitions
Acquisition of Observo AI for $225 million to enhance data pipeline capabilities and boost AI-native security operations.
Negative Updates
Guidance Concerns
Q4 revenue guidance of approximately $271 million represents a 20% year-over-year growth, which was perceived as slightly lighter than expectations due to macroeconomic conditions and deal timing.
Leadership Transition
CFO Barbara Larson announced her departure, which might signal potential challenges in maintaining the current trajectory without her guidance.
Gross Margin Compression
Expected sequential gross margin compression in Q4 due to strategic investments in cloud infrastructure and capacity expansion.
Company Guidance
During the SentinelOne Q3 FY 2026 earnings call, guidance was provided for the fiscal fourth quarter and the full fiscal year 2026, with expectations of continued growth and profitability. The company reported a 23% year-over-year increase in Annual Recurring Revenue (ARR), driven by new business generation and expansion with existing customers. For Q4, SentinelOne expects revenue of approximately $271 million, representing a 20% year-over-year growth. The full-year revenue is projected to be around $1.001 billion, reflecting a 22% increase from the previous year. Operating margin for the full year is expected to exceed 3%, with a Q4 target of approximately 5%. Gross margin is anticipated to be 77.5% for Q4 and 78.5% for the full year, taking into account strategic investments in cloud infrastructure. Additionally, SentinelOne aims to deliver positive free cash flow for the year, a few points higher than the operating margin, reinforcing its commitment to sustainable, profitable growth.SentinelOne Financial Statement Overview
Summary
SentinelOne demonstrates strong revenue growth and gross margins, but faces profitability challenges with negative net income and EBIT margins. The balance sheet is robust with low leverage, but cash flow generation remains a concern. Continued focus on improving profitability and cash flow efficiency will be crucial for future financial health.Income Statement
SentinelOne shows a strong gross profit margin of 74.95% TTM, indicating efficient cost management. However, the company faces challenges with negative net profit and EBIT margins, reflecting ongoing losses. Revenue growth is positive at 5.01% TTM, suggesting potential for future profitability if cost controls improve.65
Positive
Balance Sheet
The balance sheet is stable with a low debt-to-equity ratio of 0.0077 TTM, indicating minimal leverage. However, the return on equity is negative, highlighting profitability challenges. The equity ratio is healthy, suggesting a strong capital structure.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by -6.91% TTM, indicating cash generation challenges. The operating cash flow to net income ratio is low at 0.068, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio is relatively strong at 0.573, showing some ability to generate cash relative to net losses.60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 821.46M | 621.15M | 422.18M | 204.80M | 93.06M |
| Gross Profit | 610.36M | 442.59M | 278.00M | 123.12M | 53.72M |
| EBITDA | -238.67M | -292.71M | -349.18M | -258.54M | -109.79M |
| Net Income | -288.44M | -338.69M | -378.68M | -271.10M | -117.57M |
Balance Sheet | |||||
| Total Assets | 2.41B | 2.32B | 2.26B | 2.04B | 520.56M |
| Cash, Cash Equivalents and Short-Term Investments | 721.90M | 925.96M | 623.52M | 1.67B | 395.84M |
| Total Debt | 19.07M | 22.93M | 26.97M | 29.08M | 42.09M |
| Total Liabilities | 737.38M | 727.36M | 602.21M | 391.39M | 841.10M |
| Stockholders Equity | 1.67B | 1.59B | 1.66B | 1.65B | -320.54M |
Cash Flow | |||||
| Free Cash Flow | 6.59M | -87.14M | -212.10M | -105.88M | -72.83M |
| Operating Cash Flow | 33.73M | -68.37M | -193.29M | -95.59M | -66.57M |
| Investing Cash Flow | -218.40M | 140.59M | -1.31B | -19.74M | -6.26M |
| Financing Cash Flow | 55.88M | 47.46M | 36.31M | 1.39B | 423.98M |
SentinelOne Technical Analysis
Negative
14.61
Price Trends
16.44
Negative
17.07
Negative
17.78
Negative
Market Momentum
-0.55
Positive
37.57
Neutral
9.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For S, the sentiment is Negative. The current price of 14.61 is below the 20-day moving average (MA) of 15.51, below the 50-day MA of 16.44, and below the 200-day MA of 17.78, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 9.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for S.
SentinelOne Risk Analysis
SentinelOne disclosed 56 risk factors in its most recent earnings report. SentinelOne reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SentinelOne Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $20.11B | 20.61 | 34.19% | ― | 6.31% | 25.27% | |
73 Outperform | $127.86B | 117.90 | 15.33% | ― | 15.30% | -60.71% | |
71 Outperform | $59.03B | 32.84 | 228.04% | ― | 14.78% | 22.52% | |
67 Neutral | $118.49B | ― | -8.88% | ― | 22.05% | -341.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $4.92B | -11.65 | -25.79% | ― | 24.09% | -34.25% | |
60 Neutral | $36.11B | -880.68 | -2.41% | ― | 23.24% | -8.83% |
* Technology Sector Average
S
SentinelOne
14.61
-7.72
-34.57%
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SentinelOne Corporate Events
Executive/Board ChangesFinancial Disclosures
SentinelOne Reports Strong Q3 2026 Financial Results
Positive
Dec 4, 2025
On December 4, 2025, SentinelOne announced its financial results for the third quarter of fiscal year 2026, showing a 23% year-over-year increase in both revenue and annualized recurring revenue (ARR). The company reported improved margins and profitability, highlighting its strong growth and market demand for its AI-powered security solutions. Additionally, SentinelOne announced a leadership change with CFO Barbara Larson transitioning out of the company, with Barry Padgett stepping in as interim CFO.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.