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what it is
SentinelOne sells software that watches your computers and cloud systems for attacks, then tries to stop them automatically.
how it gets paid
Last year Sentinelone made $821M in revenue.
why it's growing
Revenue grew 32.2% last year. The 74.7% gross margin matters most because it shows the software economics are strong even while operating margin stays negative 40.1%.
what just happened
SentinelOne posted $0.07 EPS, ahead of the $0.06 consensus, while revenue reached $271.2M in the latest quarter.
At a glance
B balance sheet — gets the job done, barely
75.1x trailing p/e — you're paying up for this one
17.0% return on capital — nothing to write home about
xvary composite: 29/100 — weak
$0.30 fy2026 eps est
What they do
SentinelOne sells software that watches your computers and cloud systems for attacks, then tries to stop them automatically.
SentinelOne protects more than 10,000 customers through one platform that spans endpoints, cloud, and identity. That breadth matters because your security team hates juggling five consoles for one problem. The company also sells 92% through channel partners, which means its sales reach is much bigger than a 2,300-person company usually gets.
How they make money
$821M
annual revenue · their business grew +32.2% last year
total revenue
$821M
+32.2%
The products that matter
cybersecurity software platform
Singularity platform
10,000+ customers
This is the product behind the company’s current $821M revenue base. If it keeps expanding inside a 10,000+ customer footprint, the $2B FY2028 revenue target stays plausible.
core platform
software economics
gross margin profile
74.7% gross margin
A 74.7% gross margin means SentinelOne keeps about 75 cents of each revenue dollar after direct costs. That is what you want from software. The missing piece is how much of that drops to durable earnings.
the key insight
scale target
fy2028 revenue path
$2B estimate
The long-range model points to $2B in revenue by FY2028 versus $821M today. Same company. Very different scale. That gap is the entire bull case.
more than 2x
Key numbers
$2.0B
2028 revenue
That estimate is about 2.4x today's $821M annual revenue, so your whole thesis depends on SentinelOne nearly doubling again.
40.1%
operating margin
Operating margin → profit after running the business → so what: the product sells, but the company still burns too much to support the story.
75.1x
trailing p/e
A 75.1x multiple is expensive for a company with a negative 40.1% operating margin. You are paying tomorrow's price for a business still cleaning up today.
17.0%
return on capital
Return on capital → profit earned on the money put into the business → so what: despite ugly margins, there is evidence the core engine can become efficient.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- net profit margin 11.1% — keeps 11 cents of every dollar in revenue
- return on equity 17% — $0.17 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for S right now.
source: institutional data · return history unavailable
What just happened
beat estimates
SentinelOne posted $0.07 EPS, ahead of the $0.06 consensus, while revenue reached $271.2M in the latest quarter.
The bigger story was not the penny beat. It was that SentinelOne crossed $1.0B in fiscal 2026 revenue while keeping gross margin near the high-70s in recent company results.
$271.2M
revenue
$0.07
eps
74.7%
gross margin
the number that mattered
The 74.7% gross margin matters most because it shows the software economics are strong even while operating margin stays negative 40.1%.
-
sentinelone’s october-quarter revenue metrics were basically in line with our expectations. (fiscal 2025 year ends january 31, 2026.) revenue growth of 23% vs. prior year slightly surpassed our estimate, and management stated that the fourth-quarter top line will approximate $271 million, or $2 million below our previous call.
-
annual recurring revenue growth was 23% in the third quarter, a similar rate to recent periods.
-
the financial presentation has changed.earnings per share are now based on non-gaap accounting, which excludes the material effect of stock-based compensation.
-
we have restated only the 2025 quarterly results.
-
our new fiscal 2026 estimates are tempered by some recent factors.we have reduced our revenue estimate by $5 million, yet again to reflect the mild, yet steady, deceleration in growth.
source: company earnings report, 2026
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What could go wrong
The top risk here is execution not catching up to a premium software multiple, with litigation overhang adding a second source of pressure.
med
litigation and disclosure overhang
The supplied risk set references the Q2 FY2026 10-Q and a Jan 2026 law-firm headline tied to SentinelOne-related legal activity.
The supplied model flags $123M–$205M of revenue at risk on the high-severity items. Even if the operating business holds up, that kind of noise can keep the stock from rerating.
med
valuation is still doing a lot of the work
Trailing p/e is 75.1x, and the FY2026 EPS estimate is only $0.30. Those two numbers belong to a company the market expects to grow into something much larger.
If earnings do not scale fast enough, the multiple can compress even while revenue keeps growing. Welcome to premium-software math.
med
the stock is volatile because conviction is not settled
Price stability is 10 / 100, and the 52-week range runs from $14 to $25.
That is a 79% spread between the low and high. You are not buying a bunker stock. You are buying a debate.
med
the long-range model still needs a big jump
The revenue path points to $2B by FY2028 from $821M today.
That is more than 2x the current revenue base. If that path slips, the bull case loses its cleanest number.
The supplied risk model puts combined revenue exposure around $164M. The bigger issue is simpler: a 75.1x trailing multiple leaves very little room for the story to get messy.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
The date is not supplied here. The number that matters is whether growth still supports the current $2B FY2028 revenue path.
metric
gross margin holding near 74.7%
That margin is why the software story works. If it slips, the business starts looking less special very quickly.
trend
institutional buying staying positive
Net buying for three straight quarters sounds encouraging. The 217 buyers versus 209 sellers count says it is encouragement, not unanimity.
risk
litigation headlines lingering
This is the kind of overhang that keeps a premium multiple from getting even more premium.
Analyst rankings
short-term outlook
bottom 5%
outlook rank 5 — the lowest rating — significant underperformance expected.
risk profile
below average
risk rank 4 — more volatile than most — brace for bigger swings.
chart momentum
average
momentum rank 3 — the stock is moving with the broader market, no unusual signal.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 217 buyers vs. 209 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$12
$34
$15
current price
$23
target midpoint · +53% from current · 3-5yr high: $34
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