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 a robust Q3 FY 2026, with revenue growing 23% year-over-year to $259 million, and net new ARR adding $54 million. The company's ARR grew 23% to a new high, driven by strong demand for its emerging platform solutions, including Purple AI, Cloud Security, and Data Solutions. The operating margin reached a new high, demonstrating continued operating leverage and increasing efficiencies. EPS came in at $0.07, beating estimates of $0.05.
Publication Date: Dec -07
The company's financial performance was impressive, with revenue growth driven by international markets, which grew 34% and represented 40% of total revenue. Customers with ARR of $100,000 or more grew 20% to 1,572, and ARR per customer reached a new company record. Gross margin remained industry-leading at 79%, and operating profitability improved by nearly 1,200 basis points year-over-year.
SentinelOne's emerging platform solutions continue to scale and achieve outsized growth, with Purple AI growth exceeding expectations, and Data Solutions bookings growth accelerating to triple digits year-over-year. The acquisition of Observo AI expanded the company's data pipeline capabilities, enabling real-time telemetry pipeline management. The company also introduced Prompt Security, addressing the growing need for secure AI usage.
The company guided for continued durable and profitable growth, with revenue expected to be approximately $1.001 billion for fiscal year '26, representing 22% year-over-year growth. Gross margin is expected to remain at the high 70s level, with operating margin slightly exceeding 3% for the full year. SentinelOne reaffirmed its commitment to delivering positive free cash flow for the full year.
SentinelOne's current valuation metrics indicate a P/S Ratio of 4.88 and an EV/EBITDA of -16.91. Given the company's growth prospects, with analysts estimating revenue growth at 22.4% next year, the current valuation appears reasonable. However, investors should continue to monitor the company's ability to sustain its growth momentum and improve its profitability.
Options Corner: SentinelOne's Volatility Shock Opens A High-Conviction Bull Spread
Dec -05
SentinelOne Q3 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall
Dec -05
SentinelOne shares drop on weak Q4 guidance, CFO departure
Dec -05
SentinelOne shares drop on weak Q4 guidance, CFO departure
Dec -05
SentinelOne Q3: CFO's Parting Gift To Bulls (Rating Upgrade)
Dec -05
SentinelOne, Inc. (S) Q3 2026 Earnings Call Transcript
Dec -05
SentinelOne (S) Q3 Earnings and Revenues Surpass Estimates
Dec -04
SentinelOne Plunges 8% After Q3 FY26 Earnings Report
Dec -04
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
1-Year Total Return ->
Value: 3.6
Growth: 6.4
Quality: 5.5
Yield: 0.0
Momentum: 7.5
Volatility: 6.3
1-Year Total Return ->
Value: 3.4
Growth: 9.4
Quality: 5.4
Yield: 0.0
Momentum: 2.5
Volatility: 4.3
1-Year Total Return ->
Value: 4.1
Growth: 6.1
Quality: 4.8
Yield: 0.0
Momentum: 4.0
Volatility: 5.7
1-Year Total Return ->
Value: 3.4
Growth: 7.2
Quality: 4.8
Yield: 0.0
Momentum: 5.0
Volatility: 3.0
1-Year Total Return ->
Value: 4.6
Growth: 6.7
Quality: 4.2
Yield: 0.0
Momentum: 1.0
Volatility: 3.7
1-Year Total Return ->