SentinelOne (S) Is Up 11.2% After Raising Full-Year Revenue Guidance Near US$1 Billion

• SentinelOne reported its second-quarter 2026 earnings, showing year-over-year revenue growth to US$242.18 million and providing updated guidance for the third quarter and full year with anticipated revenues nearing US$1 billion.
• The company's results highlight strong enterprise adoption of its AI-powered Singularity platform and sustained momentum in expanding its cloud and AI security offerings.
• We’ll examine how SentinelOne’s upbeat full-year revenue guidance may influence its investment narrative and long-term outlook.

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SentinelOne Investment Narrative Recap

To stand behind SentinelOne as a shareholder, you need to believe in the company's ability to transform itself into an all-in-one AI-native cybersecurity platform, capturing increasing enterprise demand for integrated cloud and AI security. The recent Q2 earnings, with revenues climbing year over year and upbeat full-year guidance, reinforce positive momentum in customer adoption, yet these results do not fully resolve concerns about persistent net losses and the financial impact of legacy product retirements, which remain the most important short-term catalyst and risk, respectively. Overall, the near-term implications of this news event are constructive for sentiment but not materially game-changing for the business’s risk profile.

In the context of these earnings, SentinelOne’s recent high-level certification for its Singularity Platform by the Spanish National Cryptologic Center stands out. This milestone expands SentinelOne’s reach into the highly regulated public sector and may strengthen customer confidence, which directly relates to its efforts to offset revenue headwinds from legacy product retirement.

By contrast, investors should also be aware of the ongoing challenge surrounding the churn from retired legacy products, which...

Read the full narrative on SentinelOne (it's free!)

SentinelOne's outlook anticipates $1.5 billion in revenue and $199.8 million in earnings by 2028. This scenario assumes a 21.1% annual revenue growth rate and an earnings increase of $626.3 million from current earnings of -$426.5 million.

Uncover how SentinelOne's forecasts yield a $22.71 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community have assigned fair values to SentinelOne ranging from US$15 to US$25.09 per share. Despite the recent positive revenue outlook, wide-ranging viewpoints on the risks of legacy product exposure highlight why it pays to weigh more than one opinion.

Explore 10 other fair value estimates on SentinelOne - why the stock might be worth 20% less than the current price!

Build Your Own SentinelOne Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free SentinelOne research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SentinelOne's overall financial health at a glance.

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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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