GICS Sector : Technology
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.
SentinelOne reported robust Q2 results, with revenue growing 22% year-over-year to $242 million, surpassing expectations. The company's industry-leading gross margin remained stable at 79%, and operating profitability reached 2%. Earnings per share (EPS) came in at $0.04, beating estimates of $0.03. The strong financial performance was driven by a 24% growth in total Annual Recurring Revenue (ARR), which crossed the $1 billion mark.
Publication Date: Aug -29
The company's growth was fueled by strong contributions from new customer additions, expansion with existing accounts, and increased adoption of its AI and data solutions. Notably, approximately half of the quarterly bookings came from non-endpoint solutions, highlighting the diversification of SentinelOne's revenue streams. The launch of SentinelOne Flex, a unified flexible licensing model, has been well-received, with an 8-figure total deal value.
With a current P/S Ratio of 6.83, investors are pricing in significant growth expectations. Given the company's raised guidance for fiscal year '26, with revenue expected to grow to $998 million to $1.02 billion, it appears that the market may be underestimating SentinelOne's potential. The company's strong balance sheet, with $1.2 billion in cash and no debt, provides a solid foundation for future growth.
SentinelOne's acquisition of Prompt Security, a pioneer in securing generative AI, marks a strategic step forward in its vision to build the world's definitive AI security company. The company's continued innovation in AI-native SIEM capabilities and Singularity Cloud runtime security is driving customer adoption and growth.
The company expects to sustain quarterly operating profitability and deliver its first full year of operating profit this fiscal year. With a strong pipeline and encouraging early momentum on Flex, SentinelOne is well-positioned for continued growth and expansion. Analysts estimate next year's revenue growth at 22.0%, indicating a stable outlook for the company's financial performance.
SentinelOne, Inc. (S) Q3 2026 Earnings Call Transcript
00:28
SentinelOne (S) Q3 Earnings and Revenues Surpass Estimates
Dec -04
SentinelOne Plunges 8% After Q3 FY26 Earnings Report
Dec -04
SentinelOne Reports Q3 Earnings, Stock Slips As Guidance Falls Short Of Expectations
Dec -04
SentinelOne forecasts quarterly revenue below estimates, CFO to step down
Dec -04
SentinelOne Announces Third Quarter Fiscal Year 2026 Financial Results
Dec -04
Mark J. Barrenechea Appointed to SentinelOne Board of Directors
Dec -03
SentinelOne to Report Q3 Earnings: What's in Store for the Stock?
Dec -02
Singularity Platform's 12.53% growth driven by increasing demand for autonomous endpoint security, expansion into cloud workload protection, and growing adoption of Extended Detection and Response (XDR) solutions, fueled by rising cyber threats and regulatory requirements.
A comprehensive Extended Detection and Response (XDR) solution that provides real-time threat detection, automated response, and remediation across endpoints, networks, and clouds.
A next-generation endpoint protection platform that provides advanced threat prevention, detection, and response capabilities.
A cloud-native, AI-powered network detection and response solution that provides real-time threat detection and response across cloud, hybrid, and on-premises environments.
A comprehensive cybersecurity platform that provides endpoint protection, XDR, and network detection and response capabilities in a single solution.
A managed detection and response (MDR) service that provides 24/7 threat monitoring, detection, and response capabilities.
SentinelOne's products are highly specialized, making it difficult for substitutes to emerge. However, the company's reliance on cloud-based infrastructure and AI-powered technology makes it vulnerable to potential substitutes.
SentinelOne's customers are primarily large enterprises, which have limited bargaining power due to the company's unique product offerings and strong brand reputation.
SentinelOne's suppliers are primarily cloud infrastructure providers, which have limited bargaining power due to the company's strong negotiating position and the availability of alternative suppliers.
The cybersecurity industry is highly competitive, and new entrants can easily emerge with innovative products and services. SentinelOne's strong brand reputation and established customer base provide some barriers to entry, but the company must continue to innovate to stay ahead of new entrants.
The cybersecurity industry is highly competitive, with many established players and new entrants vying for market share. SentinelOne must continue to innovate and differentiate its products to maintain its market position.
| Value | |
|---|---|
| Debt Weight | 1.42% |
| Debt Cost | 5.21% |
| Equity Weight | 98.58% |
| Equity Cost | 7.39% |
| WACC | 7.36% |
| Leverage | 1.44% |
Value: 2.4
Growth: 8.0
Quality: 7.6
Yield: 0.0
Momentum: 5.0
Volatility: 7.3
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Value: 3.6
Growth: 6.4
Quality: 5.5
Yield: 0.0
Momentum: 7.5
Volatility: 6.3
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Value: 3.4
Growth: 9.4
Quality: 5.4
Yield: 0.0
Momentum: 2.5
Volatility: 4.3
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Value: 4.1
Growth: 6.1
Quality: 4.8
Yield: 0.0
Momentum: 4.0
Volatility: 5.7
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Value: 3.4
Growth: 7.2
Quality: 4.8
Yield: 0.0
Momentum: 5.0
Volatility: 3.0
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Value: 4.6
Growth: 6.7
Quality: 4.2
Yield: 0.0
Momentum: 1.0
Volatility: 3.7
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