SentinelOne, Inc. (NYSE: S) Research Summary

SentinelOne, Inc. (NYSE: S) is a leading cybersecurity company that offers advanced threat protection and response capabilities to enterprises. Its data-driven solutions, supported by artificial intelligence, enable users to detect and respond to threats in real time. The importance of cybersecurity has increased significantly in recent years, catalyzed by the widespread digital transformation. There is a high demand for effective solutions that can enable businesses to outsmart attackers and tackle intrusion.

The Company

SentinelOne was incorporated in 2013 and is headquartered in Mountain View, California. The company was co-founded by Tomer Weingarten, who has served as chief executive officer since its inception. The AI-driven platform, designed to provide protection from a wide range of threats, enables autonomous cybersecurity defense. The company has pioneered the first-ever purpose-built AI-powered Extended Detection and Response (XDR) platform that makes cybersecurity defense autonomous. The flagship Singularity Platform is used by companies across industries, globally.

Key Metrics

In the second quarter of 2025, the company’s total revenues increased 33% year-over-year to 198.9 million, reflecting broad-based demand growth. It posted a net loss of $69.2 million or $0.22 per share for the July quarter, compared to a loss of $89.5 million or $0.31 per share a year earlier. Adjusted gross margin came in at 80%. As of July 31, 2024, annualized recurring revenue increased 32% to $806.0 million.

For the third quarter of 2025, the management expects revenues of $209.5 million and an adjusted gross margin of 79%. Betting on its continued investment in innovation and scale, the company raised its full-year 2025 revenue and adjusted gross margin guidance to $815 million and 79%, respectively.

Updates

In February 2024, SentinelOne completed the acquisition of PingSafe, a cloud-native application protection platform (CNAPP), combining its AI-powered workload protection and Singularity Data Lake with a comprehensive CNAPP to create a unified security platform that protects the entire enterprise. More recently, the company reported a double-digit increase in revenues for the second quarter of fiscal 2025, which is its first-ever quarter of positive net income and earnings per share.

Advantages

Singularity Platform: SentinelOne’s Singularity Platform can be deployed in a wide range of environments, including public, private, or hybrid clouds. The Static AI model is designed to forecast all types of attacks, including previously unknown threats, with a high level of precision. The Behavioral AI model keeps track of and links all behaviors to create rich, contextual narratives called Storylines.

AI-Driven Protection: The use of AI and machine learning algorithms gives the SentinelOne platform an edge over others in terms of detecting and responding to various threats. The company’s intelligent systems learn whenever they are challenged by attacks and evolve on their own while adapting to new threats.

Speed & Efficiency: The platform provides visibility across the digital assets of businesses through a fully integrated console, allowing analysts to investigate incidents by searching through large volumes of data with ease and efficiency.

Disadvantages

Competition: While cybersecurity is a rapidly growing area, SentinelOne has to remain innovative to deal with the growing competition in the market, especially in the endpoint protection category. It is crucial to safeguard market share from rivals like CrowdStrike, McAfee, and Symantec.

Accuracy: With advanced technologies like artificial intelligence and machine learning also comes the risk of cybersecurity solutions falsely flagging harmless activity as malicious. It can result in the system missing real threats, causing operational disruptions.  

System Performance: When used in conventional IT systems, the SentinelOne platform might impact network performance due to in-depth inspection and real-time monitoring. In such situations, clients will be required to upgrade to the latest high-performance systems.