SentinelOne (S): Evaluating Valuation After Raised Revenue Outlook and Launch of Flex Subscription

SentinelOne (S) has just raised its full-year revenue outlook for fiscal 2026 after a strong quarter and unveiled a new Flex subscription option that gives customers more flexibility in their deployments.

See our latest analysis for SentinelOne.

SentinelOne’s raised outlook and new Flex offering have come amid a turbulent period for the stock. Although share price momentum has perked up recently, with a 4.94% gain in the past day, its year-to-date share price return of -20.91% and one-year total shareholder return of -31.37% show investors have been cautious. Long-term three-year total returns remain just in positive territory at 1.19%. Strong quarterly results have reignited optimism, hinting at improved sentiment and potential for a turnaround if growth accelerates.

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With recent revenue guidance upgrades and a significant product launch renewing optimism, investors now face a key question: Is SentinelOne trading at an attractive valuation, or are the company’s future gains already fully reflected in its stock price?

Most Popular Narrative: 24% Undervalued

SentinelOne’s most popular narrative suggests the company’s fair value sits well above the latest close, positioning the stock as a notable bargain candidate. A fair value of $23.50, compared to a last close of $17.85, sets expectations for material upside if these narrative assumptions prove out.

SentinelOne's robust innovation in AI-driven, autonomous security, highlighted by substantial enterprise adoption of Purple AI and the AI-native SIEM platform, strongly positions the company to capture growing budgets as cyber threats become more sophisticated. This is likely to drive sustained revenue growth and improve gross margins as their differentiated offerings enable premium pricing.

Read the complete narrative.

Curious what powers this optimistic price call? The narrative hinges on aggressive improvements in earnings and margins, betting on bold shifts in business performance. Want to know which financial leap or margin magic underpins this bullish valuation? Uncover the calculations and see what really drives these standout assumptions.

Result: Fair Value of $23.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifts in partner strategies or unexpected regulatory changes could disrupt SentinelOne’s progress. This could make the optimistic narrative more difficult to realize.

Find out about the key risks to this SentinelOne narrative.

Build Your Own SentinelOne Narrative

If you see the story differently or want to test your own assumptions, you can build your own take in just a few minutes. Do it your way

A great starting point for your SentinelOne research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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