SentinelOne (S) AI Stock Analysis

• Market Cap: $5.63B
• Dividend Yield: N/A
• Average Volume (3M): 5.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 25.39%
• EPS Growth: -42.90%
• Country: US
• Employees: 2,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 319,496,950
• 10 Day Avg. Volume: 4,920,769
• 30 Day Avg. Volume: 5,217,650
• 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: 0.94
• Enterprise Value/Revenue: 5.81
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: -20.31
• 1Y Price Target: $23.28
• Price Target Upside: 38.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $19.00 ▲(13.30% Upside)

SentinelOne's overall stock score is driven by strong earnings call performance and strategic growth initiatives, including significant ARR growth and new product introductions. However, ongoing profitability challenges and a negative P/E ratio weigh down the score. Technical indicators suggest a neutral market position, while macroeconomic concerns and limited immediate impact from recent acquisitions add caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

ARR Milestone

Crossing $1 billion in ARR signifies robust subscription model success, ensuring predictable revenue and customer retention.

Product Innovation

New product introductions like SentinelOne Flex enhance competitive positioning and cater to evolving customer needs, driving growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues with negative margins may hinder reinvestment and growth, impacting long-term financial health.

Cash Flow Concerns

Weak cash flow generation limits operational flexibility and investment capacity, posing risks to sustainable growth.

Limited Impact from Acquisition

The acquisition's limited immediate financial impact suggests challenges in realizing expected synergies and benefits promptly.

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 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 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.

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	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	442.59M	278.00M	123.12M	53.72M
EBITDA	-259.50M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 16.77
• 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 16.77 is below the 20-day moving average (MA) of 17.19, below the 50-day MA of 17.77, and below the 200-day MA of 18.80, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 10.41 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
FTNT	78 Outperform	$65.30B	34.32	228.04%	―	14.78%	22.52%
PANW	78 Outperform	$144.30B	132.10	17.45%	―	14.87%	-57.43%
CHKP	76 Outperform	$20.78B	21.42	34.19%	―	6.31%	25.27%
ZS	71 Outperform	$51.97B	―	-2.70%	―	23.31%	31.04%
CRWD	66 Neutral	$133.99B	―	-8.99%	―	23.46%	-270.07%
S	62 Neutral	$5.63B	―	-27.34%	―	25.39%	-42.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SentinelOne Corporate Events

SentinelOne Completes Acquisition of Prompt Security

On August 5, 2025, SentinelOne, Inc. entered into a merger agreement to acquire Prompt Security, Inc., a transaction completed on September 5, 2025, for approximately $180 million in cash and stock. Additionally, SentinelOne announced plans to acquire Observo, Inc. for about $225 million, with the transaction expected to close in the third quarter of fiscal year 2026, pending regulatory approvals.

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.

SentinelOne’s Q2 Earnings Call Highlights Robust Growth

SentinelOne’s recent earnings call exuded a strong sense of optimism, driven by impressive performance metrics in the second quarter. The company celebrated significant ARR growth, record net new ARR, and achieved operating profitability. Despite some caution due to macroeconomic conditions and the limited immediate financial impact of their recent acquisition, the overall sentiment was positive, bolstered by strategic initiatives like the introduction of SentinelOne Flex and the acquisition of Prompt Security.

SentinelOne Reports Strong Q2 Growth and Revenue

SentinelOne, Inc., a leading cybersecurity firm specializing in AI-powered security solutions, has reported its financial results for the second quarter of fiscal year 2026, showcasing significant growth and strategic advancements. The company, known for its innovative platform that integrates AI, data, and security, continues to strengthen its position in the cybersecurity industry.

SentinelOne Reports Strong Q2 2026 Financial Results

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.

The most recent analyst rating on (S) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on SentinelOne stock, see the S Stock Forecast page.