Company Reports

SentinelOne reported second-quarter results that included sales growing 21% to $292 million and adjusted operating margins expanding 800 basis points to 10%. The firm's annual recurring revenue, or ARR, grew 22% to $1.218 billion.

We view SentinelOne as a challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike. As enterprises undergo digital transformations and cloud migrations, we foresee endpoint security further gaining wallet share of an enterprise’s security spending. SentinelOne is building itself to be a strong competitor within this burgeoning market, and we think the stickiness of its platform, Singularity, is evidenced by the firm’s impressive gross and net retention metrics. We see a nice growth runway ahead for the firm.

SentinelOne reported first-quarter results, which included sales growth of 21% to $277 million and adjusted operating margins expanding 550 points to 4%. The firm's annual recurring revenue, or ARR, grew 23%, decelerating from the 24% growth a year ago.

Anthropic confirmed the existence of an upcoming model after Fortune first reported plans for it on March 26. This new model, named either Mythos or Capybara, is reportedly much better than existing models at finding cyber vulnerabilities. This news sent our cyber coverage down 5% on average.

We view SentinelOne as a challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike. As enterprises undergo digital transformations and cloud migrations, we foresee endpoint security further gaining wallet share of an enterprise’s security spending. SentinelOne is building itself to be a strong competitor within this burgeoning market, and we think the stickiness of its platform, Singularity, is evidenced by the firm’s impressive gross and net retention metrics. We see a nice growth runway ahead for the firm.

SentinelOne reported fourth-quarter results, with the firm's sales growing 20% to $271 million and adjusted operating margin expanding 5 percentage points to 6%. Guidance for fiscal 2027 calls for sales growth of 20% and adjusted operating margin of 10%, both at the midpoint.

On Feb. 20, Anthropic released a vulnerability-scanning tool aimed at security applications, leading to an average drawdown of over 5% across our cybersecurity coverage as investors worry that Anthropic and other artificial intelligence labs could replace cybersecurity functions within companies.

SentinelOne reported third-quarter results, with sales growing 23% to $259 million and adjusted operating margins growing 12 percentage points to 7%. The firm's annual recurring revenue, a forward-looking indicator, grew 23% to north of $1 billion, with ARR growth down from 29% a year ago.

We view SentinelOne as an emerging challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike. As enterprises undergo digital transformations and cloud migrations, we foresee endpoint security further gaining wallet share of an enterprise’s security spending. SentinelOne is building itself to be a strong competitor within this burgeoning market, and we think the stickiness of its platform, Singularity, is evidenced by the firm’s impressive gross and net retention metrics. We see a nice growth runway ahead for the firm.

SentinelOne reported solid second-quarter earnings that included sales growing 22% to $242 million and adjusted operating margins expanding 500 basis points to 2%. The firm's annual recurring revenue also grew 24% to just above $1 billion.

SentinelOne kicked off fiscal 2026 with a set of decent financial results that included sales growth of 23% to $229 million and adjusted operating margin expansion of 400 basis points to negative 2%. Looking ahead, however, the firm revised its sales outlook downward due to macro pressures.

We view SentinelOne as an emerging challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike. As enterprises undergo digital transformations and cloud migrations, we foresee endpoint security further gaining wallet share of an enterprise’s security spending. SentinelOne is building itself to be a strong competitor within this burgeoning market, and we think the stickiness of its platform, Singularity, is evidenced by the firm’s impressive gross and net retention metrics. We see a nice growth runway ahead for the firm.

SentinelOne reported mixed fourth-quarter financial results to close out fiscal 2025. While the firm's sales grew 29% and its adjusted operating margin expanded to 1%, the firm's 2026 sales growth outlook was underwhelming. Shares were down over 12% in after-hours trading on the guidance.

We view SentinelOne as an emerging challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike. As enterprises undergo digital transformations and cloud migrations, we foresee endpoint security further gaining wallet share of an enterprise’s security spending. SentinelOne is building itself to be a strong competitor within this burgeoning market, and we think the stickiness of its platform, Singularity, is evidenced by the firm’s impressive gross and net retention metrics. We see a nice growth runway ahead for the firm.

SentinelOne reported strong third-quarter earnings, with the firm's top line growing 28% year over year to $164 million and its adjusted margins expanding 600 basis points year over year to negative 5%. The firm also marginally raised its fiscal 2025 sales outlook by $3 million.

We view SentinelOne as an emerging challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike. As enterprises undergo digital transformations and cloud migrations, we foresee endpoint security further gaining wallet share of an enterprise’s security spending. SentinelOne is building itself to be a strong competitor within this burgeoning market, and we think the stickiness of its platform, Singularity, is evidenced by the firm’s impressive gross and net retention metrics. We see a nice growth runway ahead for the firm.

We are raising our fair value estimate for no-moat SentinelOne to $22 per share from $21 as we update our outlook for the remaining half of fiscal 2025 following a solid second-quarter earnings report. While we expect SentinelOne to benefit from increased customer interest in its solutions following the CrowdStrike IT outage, we saw a tension between management’s bullish commentary and the marginal $3.5 million upward revision of the firm’s fiscal 2025 sales outlook. We believe that the guidance is likely overly conservative and are modeling the firm to exceed its sales targets over the next two quarters.

We maintain our $21 fair value estimate for no-moat SentinelOne after the firm reported fiscal first-quarter earnings above our expectations. However, bottom-line guidance for the second quarter came in lighter than expected compared with our model and consensus, which we think is likely the culprit for after-hours shares falling sharply. We were impressed with SentinelOne’s strong momentum in acquiring enterprise customers in the quarter despite the continued tough selling environment. Nevertheless, we hold our long-term view that SentinelOne is a smaller player in a competitive endpoint security market that houses large players such as CrowdStrike, Microsoft, and Palo Alto Networks. We view shares as fairly valued.

We are raising our fair value estimate for no-moat SentinelOne to $21 from $18 after the firm closed out a strong fourth quarter and provided guidance ahead of our prior estimates. Along with strong financial results, we were impressed by SentinelOne’s continued ability to land larger customers and expand sales from existing customers. Despite the strong results, we retain our long-term view that SentinelOne is a small player in a competitive endpoint security market that houses large players such as CrowdStrike, Microsoft, and Palo Alto Networks. Despite the tumble in SentinelOne’s share price and the rise in our fair value, we still view the firm’s shares as overvalued.

We view SentinelOne as an emerging challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike. As enterprises undergo digital transformations and cloud migrations, we foresee endpoint security further gaining wallet share of an enterprise’s security spending. SentinelOne is building itself to be a strong competitor within this burgeoning market, and we think the stickiness of its platform, Singularity, is evidenced by the firm’s impressive gross and net retention metrics. We see a nice growth runway ahead for the firm.