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SentinelOne
(NYSE:S)
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Rating:65Neutral
Price Target:
$25.00
▲(23.09% Upside)
Action:Reiterated
Date:10/16/26
The score is driven most by improving fundamentals and a very positive earnings update (raised outlook, better profitability, stronger RPO/AI momentum) alongside a resilient, low-debt balance sheet and improving cash generation. Offsetting factors are continued GAAP losses/negative ROE, limited valuation support due to negative earnings and no dividend, and only neutral-to-moderate technical momentum after recent near-term softness.
Positive Factors
Recurring revenue growth
Strong recurring-revenue growth indicates continued customer adoption of SentinelOne’s platform and supports greater operating scale. Expansion in both revenue and ARR provides a durable foundation for future cash generation, investment in products, and deeper enterprise relationships over the next several quarters.
Negative Factors
Persistent GAAP losses
Despite improving non-GAAP results, substantial GAAP losses show that the business has not yet converted its scale and gross margin into accounting profitability. Continued losses can constrain retained capital, increase dependence on operating improvement, and make long-term earnings quality less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue growth
Strong recurring-revenue growth indicates continued customer adoption of SentinelOne’s platform and supports greater operating scale. Expansion in both revenue and ARR provides a durable foundation for future cash generation, investment in products, and deeper enterprise relationships over the next several quarters.
Read all positive factors
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 (S) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.51B
Dividend YieldN/A
Average Volume (3M)10.11M
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth21.09%
EPS Growth23.48%
CountryUS
Employees2,800
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-1.01
Shares Outstanding342,184,480
10 Day Avg. Volume13,658,532
30 Day Avg. Volume10,114,175
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)3.21
Price to Sales (P/S)4.61
P/FCF Ratio60.80
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue5.32
Enterprise Value/Gross Profit7.26
Enterprise Value/Ebitda-27.66
Forecast
1Y Price Target
$25.23Price Target Upside24.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering31
EPS Forecast (FY)0.32
Revenue Forecast (FY)$1.20B
SentinelOne Business Overview & Revenue Model
Company Description
SentinelOne, Inc. is a global cybersecurity firm offering its services across the United States and internationally. The company's flagship product, the Singularity XDR Platform, functions as an Extended Detection and Response (XDR) data stack. Th...
How the Company Makes Money
SentinelOne primarily makes money by selling subscriptions to its cybersecurity software platform. Revenue is largely generated from recurring contracts (typically sold to enterprises) that grant customers access to its endpoint and cloud security...
SentinelOne Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial story: revenue, ARR, RPO, profitability, cash position, and product momentum (especially AI security) all showed meaningful improvement and management raised full-year revenue and operating income guidance. The company backed progress with specific customer wins, third-party validations, and partner expansions. Principal concerns noted by management and analysts center on the modest YoY percentage gain in net new ARR despite the record dollar amount, a slight deceleration in growth within the $100K+ customer cohort, and acknowledged caution that margin expansion will moderate as the company reinvests and that enterprise modernization is multi-quarter/multi-year. Overall, the positive metrics and raised guidance substantially outweigh these measured cautions.Positive Updates
Revenue Growth Exceeds Guidance
Revenue grew 21% year-over-year to $292 million in Q2, beating the top end of guidance.
Negative Updates
Net New ARR Growth Modest Despite Record Quarter
Although Q2 delivered a record $56M net new ARR, the year-over-year increase was only 4%, indicating the record dollar amount was measured against a large prior-period base.
Read all updates
Q2-2027 Updates
Positive
Negative
Revenue Growth Exceeds Guidance
Revenue grew 21% year-over-year to $292 million in Q2, beating the top end of guidance.
Read all positive updates
Company Guidance
SentinelOne raised its fiscal 2027 outlook, guiding full‑year revenue to $1.202–$1.207 billion (about 20% YoY growth at the midpoint) and Q3 revenue to $309–$311 million (≈20% YoY at the midpoint); it also raised operating income to $124–$128 million for the year (implying ~10% operating margin at the midpoint, ~700 bps improvement vs. FY26) and to $38–$40 million for Q3 (~13% margin at the midpoint). The company expects full‑year non‑GAAP EPS of $0.30–$0.32 and Q3 EPS of $0.08–$0.09, assumes a non‑GAAP tax rate of ~17%, and roughly 370 million weighted average diluted shares for Q3 (≈361 million for the full year). Management noted the outlook excludes stock‑based compensation, employer payroll tax on employee stock transactions, amortization of acquired intangibles, acquisition‑related compensation, restructuring charges, gains on strategic investments and certain income tax items.SentinelOne Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.10B | 1.00B | 821.46M | 621.15M | 422.18M | 204.80M |
| Gross Profit | 805.23M | 732.70M | 610.36M | 442.59M | 278.00M | 123.12M |
| EBITDA | -211.26M | -224.78M | -238.67M | -292.71M | -352.74M | -261.40M |
| Net Income | -340.09M | -450.74M | -288.44M | -338.69M | -378.68M | -271.10M |
Balance Sheet | ||||||
| Total Assets | 2.38B | 2.44B | 2.41B | 2.32B | 2.26B | 2.04B |
| Cash, Cash Equivalents and Short-Term Investments | 655.25M | 628.67M | 721.90M | 925.96M | 623.52M | 1.67B |
| Total Debt | 0.00 | 15.00M | 19.07M | 22.93M | 26.97M | 29.08M |
| Total Liabilities | 932.96M | 1.00B | 737.38M | 727.36M | 602.21M | 391.39M |
| Stockholders Equity | 1.45B | 1.44B | 1.67B | 1.59B | 1.66B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | 38.32M | 75.90M | 6.59M | -87.14M | -212.10M | -105.88M |
| Operating Cash Flow | 57.33M | 76.62M | 33.73M | -68.37M | -193.29M | -95.59M |
| Investing Cash Flow | -2.63M | 86.99M | -218.40M | 140.59M | -1.31B | -19.74M |
| Financing Cash Flow | -121.69M | -160.75M | 55.88M | 47.46M | 36.31M | 1.39B |
SentinelOne Technical Analysis
Neutral
20.31
Price Trends
22.56
Negative
20.00
Positive
17.17
Positive
Market Momentum
0.36
Positive
40.39
Neutral
12.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For S, the sentiment is Neutral. The current price of 20.31 is below the 20-day moving average (MA) of 24.17, below the 50-day MA of 22.56, and above the 200-day MA of 17.17, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 40.39 is Neutral, neither overbought nor oversold. The STOCH value of 12.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.93T | 29.39 | 33.22% | 0.69% | 17.79% | 31.42% | |
80 Outperform | $232.83B | 6,459.94 | 1.29% | ― | 24.30% | ― | |
72 Outperform | $14.08B | 13.93 | 36.43% | ― | 4.64% | 25.51% | |
65 Neutral | $7.51B | -21.37 | -23.16% | ― | 21.09% | 23.48% | |
65 Neutral | $387.73B | 19.79 | 42.58% | 1.56% | 21.62% | 45.95% | |
64 Neutral | $12.62B | 30.92 | 8.49% | ― | 5.87% | -0.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
S
SentinelOne
21.58
4.44
25.90%
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SentinelOne Corporate Events
Business Operations and StrategyStock BuybackPrivate Placements and Financing
SentinelOne Raises Capital via Convertible Notes and Buyback
Positive
Oct 16, 2026
On October 16, 2026, SentinelOne completed a private placement of $1.25 billion of 0.00% convertible senior notes due 2031, including the full exercise of the underwriters’ option, raising about $1.408 billion in net proceeds. The zero-coupo...
Business Operations and StrategyFinancial Disclosures
SentinelOne Delivers Strong Q2 Results, Raises 2027 Outlook
Positive
Aug 27, 2026
On August 27, 2026, SentinelOne reported second quarter fiscal 2027 results showing revenue up 21% year-on-year to $292 million and annualized recurring revenue rising 22% to $1.218 billion for the period ended July 31, 2026. The company highlight...
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.