SentinelOne (S) AI Stock Analysis

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SentinelOne

(NYSE:S)

Rating:64Neutral

Price Target:―

SentinelOne demonstrates strong revenue growth and significant profitability milestones, enhancing its financial performance score. However, technical indicators suggest bearish momentum, and the negative P/E ratio underscores profitability challenges. The positive outlook from the earnings call, with strategic focus on AI and cloud security, contributes to a favorable sentiment, though operational hurdles and macroeconomic uncertainties remain.

Positive Factors

Product Adoption

Strong adoption of SentinelOne's Singularity platform, particularly in Cloud security, Data solutions, and AI, indicates consistent emerging product adoption.

Revenue Performance

Despite challenges, Sentinelone reported a 23% year-over-year increase in F1Q26 revenue, slightly exceeding estimates and consensus.

Technology and Market Position

Sentinelone, Inc. is recognized for its unique position as a cloud-first endpoint vendor and best-in-class technology, presenting significant opportunities as the company expands its market presence.

Negative Factors

Guidance and Forecast

Sentinelone's FY26 revenue guidance has been slightly lowered due to potential macroeconomic disruptions, reflecting a more cautious outlook.

Macroeconomic Impact

Macro uncertainty has led to elongated sales cycles and deals slipping out of the quarter, impacting net new ARR and revenue growth projections.

Stock Performance

The stock has underperformed NASDAQ by -1000bps and -1860bps, YTD and on a 12M basis, respectively.

SentinelOne (S) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$5.85B

Dividend YieldN/A

Average Volume (3M)5.95M

Price to Earnings (P/E)―

Beta (1Y)1.50

Revenue Growth32.25%

EPS Growth20.56%

CountryUS

Employees2,800

SectorTechnology

Sector Strength84

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.02

Shares Outstanding318,339,540

10 Day Avg. Volume7,391,216

30 Day Avg. Volume5,948,743

Financial Highlights & Ratios

PEG Ratio0.00

Price to Book (P/B)-54.17

Price to Sales (P/S)0.00

P/FCF Ratio-256.92

Enterprise Value/Market Cap2.07

Enterprise Value/Revenue3.81

Enterprise Value/Gross Profit18.74

Enterprise Value/Ebitda-12.12

Forecast

1Y Price Target

$23.04

Price Target Upside30.98% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering26

SentinelOne Business Overview & Revenue Model

Company DescriptionSentinelOne is a cybersecurity company that specializes in endpoint protection platforms designed to prevent, detect, and respond to cyber threats. Operating in the technology and cybersecurity sectors, the company offers a suite of products that leverage artificial intelligence to provide autonomous threat prevention and detection capabilities. Its solutions are widely used by enterprises across various industries to enhance their cybersecurity posture.

How the Company Makes MoneySentinelOne generates revenue primarily through the sale of its cybersecurity software solutions. The company's revenue model is based on subscription fees that clients pay for access to its endpoint protection platforms. SentinelOne offers different pricing tiers based on the level of service and protection required, allowing it to cater to both small businesses and large enterprises. Additionally, SentinelOne has established partnerships with managed security service providers (MSSPs) and other technology companies, which help expand its market reach and contribute to its revenue growth.

SentinelOne Key Performance Indicators (KPIs)

Any

Annual Recurring Revenue

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.

Chart InsightsSentinelOne's Annual Recurring Revenue (ARR) has shown consistent growth, reaching $948 million by Q1 FY2026. Despite macroeconomic uncertainties and elongated sales cycles impacting net new ARR growth, the company remains confident, projecting a 22% revenue growth for FY2026. Strategic advancements in AI and cloud security, alongside a $200 million share repurchase authorization, underscore management's confidence in long-term growth. However, cautious full-year guidance reflects the challenges posed by economic conditions and federal sector procurement delays.

Data provided by:

Main Street Data

SentinelOne Earnings Call Summary

Earnings Call Date:May 29, 2025

(Q1-2026)

% Change Since: 1.15%|

Next Earnings Date:Aug 27, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong financial performance with record free cash flow and revenue growth, alongside significant advancements in AI and cloud security. However, macroeconomic uncertainties and elongated sales cycles posed challenges, leading to cautious full-year guidance. Despite these challenges, the company remains confident in its strategic initiatives and long-term growth potential.

Q1-2026 Updates

Positive Updates

Record Free Cash Flow Margin

SentinelOne achieved a record free cash flow margin of 20% in Q1, demonstrating strong cash generation and operational efficiency.

Revenue Growth Exceeds Expectations

The company delivered revenue growth of 23% year-over-year, surpassing expectations with a quarterly revenue of $229 million.

Expansion in AI and Cloud Security

Purple AI achieved triple-digit year-over-year growth in quarterly bookings, with a 25% attach rate across subscriptions sold. Additionally, the unified cloud security suite was introduced, enhancing cloud workload protection and security posture management.

Data Solutions Surpass $100 Million ARR

The data solutions segment surpassed $100 million in annual recurring revenue, highlighting strong demand for AI-driven cloud-native data solutions.

Strategic Federal Growth

SentinelOne achieved FedRAMP high authorization for its Purple AI and cloud security solutions, enhancing its competitive position in the federal market.

Share Repurchase Authorization

A $200 million open-ended share repurchase authorization was announced, reflecting confidence in the company's long-term trajectory.

Negative Updates

Elongated Sales Cycles

Q1 was impacted by elongated sales cycles due to macroeconomic uncertainty, affecting net new ARR growth and leading to cautious full-year growth assumptions.

Reduced Revenue Guidance

Full-year revenue guidance was reduced by 1% due to macroeconomic uncertainties, with expectations for $996 million to $1 billion in revenue.

Challenges in Federal Sector

Despite achieving FedRAMP high authorization, the federal sector experienced longer sales cycles and procurement challenges, affecting deal timelines.

Company Guidance

In the SentinelOne Q1 FY2026 earnings call, the company provided guidance for the second fiscal quarter and the full fiscal year 2026, highlighting a revenue expectation of approximately $242 million for Q2, reflecting a 22% growth. The full-year revenue is projected to range between $996 million and $1 billion, also demonstrating a 22% growth. The company maintains a gross margin forecast of around 79% for Q2 and between 78.5% and 79.5% for the full year, with an operating margin expected to be between positive 3% and 4%, marking an improvement of over 650 basis points from FY2025. Additionally, the free cash flow margin for the full year is anticipated to exceed the operating margin by several percentage points. SentinelOne also announced a $200 million share repurchase authorization, reflecting confidence in its long-term trajectory.

SentinelOne Financial Statement Overview

Summary

SentinelOne's financials show robust revenue growth and strong gross margins, indicative of a well-managed top line. While balance sheet strength is evident with no debt and high equity, the challenge remains in operational profitability and return on equity. Positive cash flow trends are a notable strength, offering potential for future financial flexibility.

Income Statement

Positive

SentinelOne demonstrates solid revenue growth with a 32.23% increase in TTM compared to the previous year. Gross profit margin is strong at 74.28%, indicating efficient management of production costs. However, persistent negative net profit and EBIT margins highlight ongoing challenges in achieving profitability.

Balance Sheet

Positive

The company maintains a strong equity position with an equity ratio of 69.36%, indicating a stable financial structure. With no total debt reported in the TTM, the debt-to-equity ratio is favorable. However, the negative ROE of -17.27% points to inefficiencies in generating returns for shareholders.

Cash Flow

Positive

A significant turnaround in free cash flow from negative to positive (136.56% growth) reflects improved cash management strategies. The operating cash flow to net income ratio of 0.12 suggests room for improvement in converting earnings to cash. Overall, cash flow trends are promising.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
864.13M	821.46M	621.15M	422.18M	204.80M	93.06M
	Gross Profit
646.63M	610.36M	441.87M	278.00M	123.12M	53.72M
	EBIT
-336.24M	-329.36M	-378.42M	-402.58M	-267.23M	-115.52M
	EBITDA
-252.27M	-238.67M	-292.71M	-349.18M	-258.54M	-109.79M
	Net Income Common Stockholders
-426.53M	-288.44M	-338.69M	-378.68M	-271.10M	-117.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
766.92M	721.90M	925.96M	623.52M	1.67B	395.84M
	Total Assets
2.38B	2.41B	2.32B	2.26B	2.04B	520.56M
	Total Debt
0.00	0.00	22.93M	26.97M	29.08M	42.09M
	Net Debt
-188.62M	-186.57M	-233.72M	-110.97M	-1.64B	-353.38M
	Total Liabilities
837.41M	737.38M	727.36M	602.21M	391.39M	841.10M
	Stockholders Equity
1.55B	1.67B	1.59B	1.66B	1.65B	-320.54M
Cash Flow		Free Cash Flow
25.04M	6.59M	-87.14M	-212.10M	-105.88M	-72.83M
	Operating Cash Flow
44.00M	33.73M	-68.37M	-193.29M	-95.59M	-66.57M
	Investing Cash Flow
-177.72M	-218.40M	140.59M	-1.31B	-19.74M	-6.26M
	Financing Cash Flow
61.63M	55.88M	47.46M	36.31M	1.39B	423.98M

SentinelOne Technical Analysis

Technical Analysis Sentiment

Negative

Last Price17.59

Price Trends

50DMA

18.38

Negative

100DMA

19.84

Negative

200DMA

22.24

Negative

Market Momentum

MACD

-0.37

Positive

RSI

41.51

Neutral

STOCH

30.78

Neutral

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 17.59 is below the 20-day moving average (MA) of 18.53, below the 50-day MA of 18.38, and below the 200-day MA of 22.24, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 30.78 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PANW	81 Outperform	$130.87B	112.31	21.16%	―	13.91%	-50.96%
FTNT	80 Outperform	$77.18B	41.50	205.91%	―	13.83%	58.13%
CRWD	78 Outperform	$119.49B	721.64	-5.76%	―	25.94%	-226.80%
CYBR	73 Outperform	$19.58B	1,777.39	-5.36%	―	35.12%	-191.84%
TENB	64 Neutral	$3.95B	―	-12.09%	―	11.79%	35.35%
S	64 Neutral	$5.85B	―	-26.98%	―	32.25%	20.56%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%

* Technology Sector Average

Performance Comparison

SentinelOne

17.59

-0.57

-3.14%

FTNT

Fortinet

101.95

42.80

72.36%

PANW

Palo Alto Networks

198.11

39.60

24.98%

CYBR

CyberArk Software

389.34

134.29

52.65%

TENB

Tenable Holdings

32.35

-6.80

-17.37%

CRWD

CrowdStrike Holdings

479.39

89.88

23.08%

SentinelOne Corporate Events

Business Operations and StrategyFinancial Disclosures

SentinelOne Reports Strong Q4 2025 Financial Results

Positive

Mar 12, 2025

On March 12, 2025, SentinelOne announced its financial results for the fourth quarter and fiscal year 2025, highlighting a 29% increase in revenue and a 27% rise in annualized recurring revenue. The company achieved its first quarter of positive non-GAAP operating margin, reflecting strong execution and platform adoption. SentinelOne aims to surpass $1 billion in ARR and revenue in the coming year, signaling significant growth and market positioning.

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.