SentinelOne Inc.

S
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$271.2M
Q4 FY2026 · +20% YoY
TTM ROIC
2.2%
FY2026 · NOPAT / Invested Capital (equity + debt − cash); Non-GAAP EBIT basis · WACC ~11% · Moat spread +-8.8pp
Margin Profile
Gross 74.1%
Operating 3.5%
FCF 5.2%
FY2026
Net Cash
$1.5B
Cash $1.5B · Debt $0M · FY2025/FY2026

Business Overview


ticker: S step: 01 generated: 2026-05-13 source: quick-research

SentinelOne, Inc. (S) — Business Overview

Business Description

SentinelOne is an AI-native cybersecurity platform that delivers endpoint detection and response (EDR/XDR), cloud security (CNAPP), identity security, and security data management (SIEM) through a single unified agent architecture — Singularity. Unlike legacy antivirus (signature-based) and even first-generation EDR (human analyst-dependent), SentinelOne's behavioral AI engine detects and responds to threats autonomously in milliseconds without requiring human intervention. FY2026 (ended Jan 2026) revenue exceeded $1B (+22% YoY), marking the first full year of non-GAAP profitability and $1B+ ARR.

Revenue Model

Subscription-based: customers purchase the Singularity Platform base (endpoint) and expand to additional modules (cloud, identity, SIEM, managed services). Multi-module adoption drives NRR expansion. ~30% of revenue through channel partners (MSSPs, resellers). ARR grew from $548.7M (Jan 2023) to $1B+ (Jan 2026) — tripling in 3 years. Large enterprise customers ($100K+ ARR) represent the core: 1,310+ such customers growing 24% YoY. International revenue is a key expansion vector (+34% YoY in recent quarters).

Products & Services

  • Singularity Endpoint — EDR/XDR: AI-powered malware prevention, behavioral detection, automated response with 1-click rollback
  • Singularity Cloud (PingSafe) — CNAPP/CWPP: cloud workload protection, Kubernetes security, cloud infrastructure entitlement management
  • Singularity Identity — Active Directory protection, identity threat detection and response
  • Singularity Data Lake — SIEM + security data platform; ingests logs from any source for unified threat hunting
  • Purple AI — conversational AI security analyst; allows security analysts to query threat data in natural language
  • Wayfinder Frontier AI Services — next-generation AI security platform (launched 2025)
  • Prompt Security (acquisition) — GenAI governance and runtime protection for AI applications

Customer Base & Go-to-Market

10,000+ customers (estimated); 1,310+ with $100K+ ARR; ~30% of Fortune 500. Notable: Amazon, JPMorgan, Tesla. Direct sales (enterprise) + channel partners (MSSPs, VARs, cloud marketplaces). Government authorizations expanding internationally. Purple AI is a key upsell driver — security teams pay more for AI-assisted investigation capabilities.

Competitive Position

SentinelOne competes directly with CrowdStrike (dominant market share, Falcon platform), Microsoft Defender (bundled with enterprise licenses), and Palo Alto Networks (Cortex XDR). CrowdStrike's high-profile BSOD outage in July 2024 created the largest displacement opportunity in cybersecurity history — SentinelOne was a primary beneficiary, gaining enterprise accounts. Differentiation: autonomous AI response (no human in the loop), cloud-native single-agent architecture, competitive pricing vs. CrowdStrike, and Singularity Data Lake as a cheaper alternative to Splunk/SIEM.

Key Facts

  • Founded: 2013
  • Headquarters: Mountain View, California
  • Employees: ~3,000
  • Exchange: NYSE
  • Sector / Industry: Technology / Cybersecurity — AI-Native EDR/XDR
  • Market Cap: ~$4–5B (at ~$16–20/share; trades at ~4x sales)

Financial Snapshot


ticker: S step: 04 generated: 2026-05-13 source: quick-research

SentinelOne, Inc. (S) — Financial Snapshot

Note: SentinelOne's fiscal year ends January 31.

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY
Revenue $422M $621M $822M +32%
Non-GAAP Gross Margin ~72% ~76% ~78% improving
GAAP Operating Margin ~-65% ~-45% ~-30% improving
Non-GAAP Operating Margin ~-20% ~-8% ~-2% approaching breakeven
GAAP Net Income ~-$0.28B ~-$0.28B ~-$0.25B slow improvement

FY2026 (ended Jan 2026): Revenue $1B+ (+22% YoY); ARR $1B+; non-GAAP operating margin 3.5% — first full year of non-GAAP profitability; expanding 600 bps annually. Q2 FY2026: revenue $242M (+22% YoY), non-GAAP operating margin 2%, non-GAAP gross margin 79%. FCF positive on TTM basis for first time. International revenue +34% YoY.

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$50–80M
Free Cash Flow ~$20–50M (first TTM-positive milestone)
Capital Expenditures ~$25M
Cash & Equivalents ~$1.5B
Total Debt ~$0 (effectively debt-free)

Debt-free with $1.5B+ cash — exceptional financial position for a growth company. FCF turned positive on TTM basis in FY2025/FY2026 — a key milestone. GAAP losses persist from SBC (~35% of revenue), but declining rapidly as SBC grows slower than revenue. Non-GAAP profitability achieved FY2026 with 600bps annual margin expansion trajectory.

Key Ratios (approximate)

  • P/E: N/A (GAAP losses) | EV/Sales: ~4x | FCF Yield: ~1%
  • Revenue Growth (TTM): ~22% | Non-GAAP Operating Margin: ~3.5%

Growth Profile

SentinelOne grew from $422M (FY2023) to $1B+ (FY2026) — 2.4x in 3 years — but growth decelerated from 106% (FY2023) to 22% (FY2026) as the business matures. The CrowdStrike BSOD outage (July 2024) provided a major displacement catalyst. ARR $1B+ achieved; non-GAAP profitability achieved; FCF positive — three milestone simultaneously. Trades at ~4x EV/Sales vs. CrowdStrike's ~22x, representing the most significant valuation discount in cybersecurity.

Forward Estimates

  • FY2027: Revenue ~$1.2–1.3B (+20–25% YoY); non-GAAP operating margin 8–10%
  • ARR: tracking from $1B toward $1.3B as Purple AI upsell and cloud security expansion continue
  • International: +34% growth; government authorizations expanding market
  • FCF margin: targeting 8–12% as non-GAAP margins expand beyond 10%
  • Analyst consensus PT: ~$24.83 (+34–50% from ~$16–18)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $S.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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