SentinelOne (S) AI Stock Analysis

• Market Cap: $4.83B
• Dividend Yield: N/A
• Average Volume (3M): 9.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 24.09%
• EPS Growth: -34.25%
• Country: US
• Employees: 2,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.07
• Shares Outstanding: 333,302,670
• 10 Day Avg. Volume: 5,845,663
• 30 Day Avg. Volume: 9,259,623
• PEG Ratio: 1.31
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 9.18
• P/FCF Ratio: 1.14K
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 6.06
• Enterprise Value/Gross Profit: 8.11
• Enterprise Value/Ebitda: -21.70
• 1Y Price Target: $20.77
• Price Target Upside: 46.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): $1.00B

• Rating: 57 Neutral
• Price Target: $15.00 ▲(5.49% Upside)

The score is supported by improving cash-flow trajectory and a strong, low-leverage balance sheet, reinforced by earnings-call guidance pointing to ongoing growth and improving margins. Offsetting this, price action remains technically weak (below key moving averages with negative MACD), and valuation signals remain challenged due to negative earnings and no dividend support, with added uncertainty from the tax settlement liabilities.

Positive Factors

Balance Sheet Strength

A very low debt load gives SentinelOne long-term financial flexibility to fund R&D, cloud capacity and targeted M&A without forcing dilutive financing. This conservatism reduces solvency risk and supports sustained investment in product and go-to-market over multiple quarters.

Improving Cash Generation

The shift to positive trailing‑12‑month operating and free cash flow signals improving unit economics and cash discipline. Durable cash generation reduces dependence on external capital, enabling reinvestment in product and margin expansion while supporting a credible path to sustained profitability.

ARR Growth & Platform Expansion

Strong recurring ARR growth and rising large‑customer counts show healthy subscription economics and higher ARPA. Expansion into cloud, data and AI (higher attach rates) increases product stickiness and cross‑sell potential, supporting durable revenue visibility and long‑term competitive differentiation.

Negative Factors

Material Net Losses

Despite improving trends, deep trailing net losses and negative margins remain structural constraints. Continued losses can erode equity and limit reinvestment capacity, forcing tradeoffs between growth and profitability or potential future capital raises that could dilute shareholders.

CFO Departure / Leadership Risk

A CFO exit during a margin and cash‑flow inflection raises execution risk around budgeting, forecasting and M&A integration. Leadership transitions can slow financial optimization and investor confidence for several quarters, complicating delivery on guided margin and FCF objectives.

Gross Margin Pressure from Cloud Investments

Strategic investments in cloud infrastructure and capacity scaling are necessary for platform growth but compress gross margins and can weigh on operating leverage. If revenue growth or attach rates lag these investments, margin and free cash flow targets could be delayed over the medium term.

SentinelOne Business Overview & Revenue Model

Company Description

SentinelOne, Inc. operates as a cybersecurity provider in the United States and internationally. The company's Extended Detection and Response (XDR) data stack that fuses together the data, access, control, and integration planes of endpoint protection platform, endpoint detection and response, cloud workload protection platform, and IoT security into a centralized platform. Its Singularity XDR Platform delivers an artificial intelligence-powered autonomous threat prevention, detection, and response capabilities across an organization's endpoints; and cloud workloads, which enables seamless and automatic protection against a spectrum of cyber threats. The company was formerly known as Sentinel Labs, Inc. and changed its name to SentinelOne, Inc. in March 2021. SentinelOne, Inc. was incorporated in 2013 and is headquartered in Mountain View, California.

How the Company Makes Money

SentinelOne 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 14.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 14.22 is below the 20-day moving average (MA) of 14.86, below the 50-day MA of 15.57, and below the 200-day MA of 17.39, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 9.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for S.

SentinelOne Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHKP	77 Outperform	$20.20B	20.67	34.19%	―	6.31%	25.27%
PANW	73 Outperform	$133.08B	119.07	15.33%	―	15.30%	-60.71%
FTNT	71 Outperform	$56.81B	31.42	228.04%	―	14.78%	22.52%
CRWD	66 Neutral	$116.14B	-360.14	-8.88%	―	22.05%	-341.24%
ZS	62 Neutral	$34.17B	-802.52	-2.41%	―	23.24%	-8.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S	57 Neutral	$4.83B	-11.23	-25.79%	―	24.09%	-34.25%

SentinelOne Corporate Events

SentinelOne Resolves Israeli Tax Dispute, Adds Future Liabilities

On January 8, 2026, SentinelOne entered into an Assessment Agreement with the Israeli Tax Authority resolving transfer pricing and intellectual property valuation disputes related to intercompany transactions with its Israeli subsidiary for fiscal years ended January 31, 2021 through January 31, 2025, incorporating principles from its ongoing bilateral Advanced Pricing Agreement process with U.S. and Israeli tax authorities. As a result of the settlement and the integration of intellectual property from its September 2025 acquisition of Prompt Security, the company expects to recognize an additional $44 million in tax expense in the fiscal year ending January 31, 2026, and will satisfy the liability through installment payments totaling tens of millions of dollars through 2030 at a 7% interest rate, a structure that clarifies its long-term tax obligations but adds to near- and medium-term cash outflows and financial commitments, with any change in control triggering acceleration of remaining payments.

The most recent analyst rating on (S) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on SentinelOne stock, see the S Stock Forecast page.

SentinelOne Reports Strong Q3 2026 Financial Results

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.

The most recent analyst rating on (S) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on SentinelOne stock, see the S Stock Forecast page.