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Sentinelone, Inc. (S)
:S
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SentinelOne
(NYSE:S)
Rating:65Neutral
Price Target:
$19.00
▲(7.34% Upside)
Positive Factors
Earnings
SentinelOne's FQ2'26 earnings delivered its largest ARR beat vs. consensus in more than a year, signaling strong performance against expectations.
Growth Strategy
The acquisition of Prompt Security for $180M should complement existing AI capabilities nicely while accelerating the firm's move into securing GenAI applications and AI agents.
Negative Factors
Financial Guidance
Management raised the full year outlook only slightly as they emphasized remaining 'prudent' given ongoing macroeconomic challenges and exposure to risk.
Market Competition
It may be challenging for SentinelOne to maintain its technology advantages vs. larger scaled peers spending more.
SentinelOne (S) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.29B
Dividend YieldN/A
Average Volume (3M)8.43M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth25.39%
EPS Growth-42.90%
CountryUS
Employees2,800
SectorTechnology
Sector Strength86
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.04
Shares Outstanding319,496,950
10 Day Avg. Volume7,732,982
30 Day Avg. Volume8,434,449
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue5.81
Enterprise Value/Gross Profit7.75
Enterprise Value/Ebitda-20.86
Forecast
1Y Price Target
$23.32Price Target Upside31.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering28
SentinelOne Business Overview & Revenue Model
Company DescriptionSentinelOne (S) is a cybersecurity company that specializes in autonomous endpoint protection through its AI-driven security platform. Founded in 2013, the company focuses on providing advanced threat detection and response solutions for a diverse range of sectors, including enterprise, government, and healthcare. Its core products include Singularity XDR, which integrates endpoint protection, detection, and response with automation to protect against sophisticated cyber threats.
How the Company Makes MoneySentinelOne generates revenue primarily through a subscription-based model, offering various tiers of its cybersecurity services. Customers pay for licenses that provide access to its platform's features, including endpoint protection, threat intelligence, and incident response capabilities. Key revenue streams include annual and multi-year subscription contracts with enterprise clients. Additionally, the company may generate revenue from professional services, such as consulting and incident response support. Strategic partnerships with technology providers and integration into existing IT infrastructures also enhance its market reach and contribute to its earnings.
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:
Main Street Data
Main Street DataSentinelOne Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 09, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in Q2 with significant ARR growth, record net new ARR, and operating profitability. There is optimism with the introduction of SentinelOne Flex and the acquisition of Prompt Security, despite some caution due to macroeconomic conditions and limited immediate financial impact from the acquisition.Q2-2026 Updates
Positive Updates
Significant ARR Growth
Total ARR grew 24% and crossed $1 billion, marking a significant milestone in SentinelOne's growth journey.
Record Net New ARR
Achieved a record second quarter net new ARR, reflecting positive year-over-year growth of over 20% and a strong uptick in new business generation.
Strong Revenue Growth
Revenue grew 22% year-over-year to $242 million, with international markets growing 27%.
Operating Profitability Achieved
Achieved operating profitability with a 2% operating margin and improved more than 500 basis points year-over-year.
Introduction of SentinelOne Flex
Launched a new flexible licensing model, which has already delivered an 8-figure total deal value and received outstanding reception.
Acquisition of Prompt Security
Announced the acquisition of Prompt Security for $180 million to enhance capabilities in securing generative AI.
Negative Updates
Macroeconomic Concerns
Mindfulness of evolving macro conditions, which can influence deal timing and sales cycles, was noted.
Limited Immediate Impact from Acquisition
The top line financial impact of the Prompt Security acquisition is expected to be minimal in fiscal year '26 with immaterial ARR and revenue contribution.
Company Guidance
During the SentinelOne Q2 FY 2026 earnings call, the company provided guidance for the fiscal third quarter and full fiscal year 2026, emphasizing continued strong growth and market momentum. The company reported a 24% year-over-year growth in total annual recurring revenue (ARR), surpassing $1 billion, and a 22% year-over-year increase in revenue to $242 million for Q2. For Q3, SentinelOne expects revenue of approximately $256 million, reflecting another 22% year-over-year growth. The company raised its full-year revenue outlook, anticipating revenue between $998 million and $1.02 billion, representing 22% growth. Operating margin for Q3 is projected at about 4%, with a full-year operating margin expected to be around 3%, an improvement from the prior fiscal year. SentinelOne also highlighted its continued focus on AI-powered innovations and platform expansion, including the recent acquisition of Prompt Security, expected to have an 80 basis point impact on full-year operating margin.SentinelOne Financial Statement Overview
Summary
SentinelOne shows robust revenue growth and strong gross margins, indicative of a well-managed top line. The balance sheet is strong with no debt and high equity, but challenges remain in operational profitability and return on equity. Positive cash flow trends offer potential for future financial flexibility.Income Statement
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.70
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 907.38M | 821.46M | 621.15M | 422.18M | 204.80M | 93.06M |
| Gross Profit | 680.11M | 610.36M | 441.87M | 278.00M | 123.12M | 53.72M |
| EBITDA | -252.59M | -238.67M | -292.71M | -349.18M | -258.54M | -109.79M |
| Net Income | -429.36M | -288.44M | -338.69M | -378.68M | -271.10M | -117.57M |
Balance Sheet | ||||||
| Total Assets | 2.35B | 2.41B | 2.32B | 2.26B | 2.04B | 520.56M |
| Cash, Cash Equivalents and Short-Term Investments | 810.82M | 721.90M | 925.96M | 623.52M | 1.67B | 395.84M |
| Total Debt | 11.54M | 19.07M | 22.93M | 26.97M | 29.08M | 42.09M |
| Total Liabilities | 842.70M | 737.38M | 727.36M | 602.21M | 391.39M | 841.10M |
| Stockholders Equity | 1.51B | 1.67B | 1.59B | 1.66B | 1.65B | -320.54M |
Cash Flow | ||||||
| Free Cash Flow | 23.31M | 6.59M | -87.14M | -212.10M | -105.88M | -72.83M |
| Operating Cash Flow | 40.66M | 33.73M | -68.37M | -193.29M | -95.59M | -66.57M |
| Investing Cash Flow | -37.13M | -218.40M | 140.59M | -1.31B | -19.74M | -6.26M |
| Financing Cash Flow | 5.89M | 55.88M | 47.46M | 36.31M | 1.39B | 423.98M |
SentinelOne Technical Analysis
Positive
17.70
Price Trends
17.79
Positive
18.10
Negative
20.35
Negative
Market Momentum
<0.01
Negative
54.51
Neutral
65.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For S, the sentiment is Positive. The current price of 17.7 is above the 20-day moving average (MA) of 16.97, below the 50-day MA of 17.79, and below the 200-day MA of 20.35, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 65.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $127.17B | 119.07 | 17.45% | ― | 14.87% | -57.43% | |
67 Neutral | $60.36B | 30.70 | 165.17% | ― | 14.46% | 48.06% | |
67 Neutral | $22.85B | 1,777.39 | -10.35% | ― | 39.45% | -982.51% | |
65 Neutral | $6.29B | ― | -27.34% | ― | 25.39% | -42.90% | |
65 Neutral | $103.77B | 721.64 | -8.99% | ― | 23.46% | -270.07% | |
63 Neutral | $3.74B | ― | -12.60% | ― | 11.41% | 33.76% | |
61 Neutral | $35.09B | 8.26 | -10.58% | 1.90% | 8.56% | -9.51% |
* Technology Sector Average
Performance Comparison
S
SentinelOne
18.02
-5.09
-22.03%
FTNT
Fortinet
76.58
-0.29
-0.38%
PANW
Palo Alto Networks
191.53
18.45
10.66%
CYBR
CyberArk Software
455.55
178.61
64.49%
TENB
Tenable Holdings
30.75
-9.14
-22.91%
CRWD
CrowdStrike Holdings
413.20
153.88
59.34%
SentinelOne Corporate Events
Business Operations and StrategyFinancial Disclosures
SentinelOne Reports Strong Q2 2026 Financial Results
Positive
Aug 28, 2025
On August 28, 2025, SentinelOne announced its financial results for the second quarter of fiscal year 2026, ending July 31, 2025. The company reported a 22% increase in revenue year-over-year, reaching $242.2 million, and a 24% rise in annualized recurring revenue (ARR) to $1 billion. The results highlight the company’s strong growth and competitive positioning in the AI-powered cybersecurity sector. SentinelOne’s strategic focus on innovation and operational excellence has led to improved margins and a raised full-year revenue outlook, reinforcing its commitment to sustained profitability and market leadership.
Shareholder Meetings
SentinelOne Concludes 2025 Annual Stockholders Meeting
Neutral
Jun 27, 2025
SentinelOne held its 2025 Annual Meeting of Stockholders virtually on June 25, 2025, where stockholders voted on key proposals. The meeting saw a quorum with 88.76% of voting power present. Stockholders elected Class I directors, ratified Deloitte & Touche LLP as the independent auditor for the fiscal year ending January 31, 2026, and approved the compensation of named executive officers on a non-binding basis.
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.