Artificial intelligence meets cybersecurity with this innovative company.
SentinelOne (S +2.31%) is a mid-cap cybersecurity company with a valuation of just $5.7 billion, but it’s an ambitious innovator with a portfolio of advanced products powered by artificial intelligence (AI). The company’s goal is to automate various tasks from threat detection to incident response to thwart modern cyber risks for its enterprise customers.
SentinelOne stock remains 80% below its record high from 2021, when a frenzy in the technology market drove its valuation to an unsustainable level. However, it’s currently trading at a very attractive level relative to its peers in the cybersecurity space, and Wall Street is betting a recovery could be in the cards.
The Wall Street Journal tracks 39 analysts who cover SentinelOne stock, and the majority have given it a buy rating, with not a single analyst recommending selling. The stock is trading at less than $20 as I write this, and here’s why the bullish sentiment on the Street might be justified heading into 2026.
Image source: Getty Images.
Protecting the entire enterprise using AI
SentinelOne developed a platform called Singularity, which includes a suite of products designed to protect cloud networks, employee identities, endpoints (computers and devices), and more. It’s a holistic AI-powered solution for the entire enterprise.
Singularity includes features like Storyline, which reconstructs cyber attacks and provides human managers with detailed analysis and recommendations, saving them manual investigative work. Then there is the patented one-click rollback tool, which allows businesses to restore networks to their pre-breach state in the event of a successful attack.
Earlier this year, SentinelOne also launched a new Singularity feature called Purple AI Athena, which is a powerful AI agent designed to behave just like a human security operations analyst, but with machine speed. It uses advanced reasoning to identify, analyze, and remediate threats in real time, so unlike many other AI-powered assistants in the industry, Purple AI Athena is capable of making independent decisions and taking action.
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SentinelOne
Today’s Change
(2.31%) $0.34
Current Price
$14.86
Key Data Points
Market Cap
$5B
Day’s Range
$14.57 – $15.04
52wk Range
$14.48 – $25.24
Volume
1M
Avg Vol
6.3M
Gross Margin
74.45%
Dividend Yield
N/A
On track for $1 billion in annual revenue
SentinelOne generated $258.9 million in revenue during its fiscal 2026 third quarter (ended Oct. 31), which was slightly more than management’s guidance of $256 million. It represented a 23% year-over-year increase, which was an acceleration from the company’s second-quarter growth rate of 22%.
The third-quarter result puts SentinelOne on track to generate $1 billion in revenue in fiscal 2026, which would mark the first time it crosses the billion-dollar milestone on an annual basis.
On a less positive note, SentinelOne is struggling to achieve profitability on a generally accepted accounting principles (GAAP) basis. It lost $60.3 million during the third quarter, and while that was an improvement from its year-ago loss of $78.3 million, the company is still a long way from operating in the black.
The situation looks better on an adjusted (non-GAAP) basis, because the company actually delivered a positive net income of $24.8 million. However, given this metric strips out several one-off and non-cash expenses like stock-based compensation, it doesn’t really reflect true profitability, so there is still work to do.
Fortunately, SentinelOne has around $650 million in cash, equivalents, and short-term investments on its balance sheet, which buys management plenty of time to continue improving the bottom line.
Wall Street is bullish on SentinelOne stock
The Wall Street Journal tracks 39 analysts who cover SentinelOne stock, and 23 have given it a buy rating. Two others are in the overweight (bullish) camp, while the remaining 14 recommend holding. None of the analysts recommended selling.
The analysts have an average price target of $21.81, which implies SentinelOne stock could climb by 45% over the next 12 to 18 months. However, the Street-high target of $30 suggests the stock could almost double instead.
Those targets might be achievable considering the stock is trading at a price-to-sales (P/S) ratio of just 5.3, which is a long way from its completely unsustainable 2021 peak of over 120. It also represents a steep discount to the valuations of its peers in the AI cybersecurity space, like CrowdStrike, Palo Alto Networks, and Zscaler.
CRWD PS Ratio data by YCharts
SentinelOne is the smallest company in this group, and it generates the least revenue. However, its 23% revenue growth in the third quarter was faster than CrowdStrike’s 22% growth and Palo Alto’s 16% growth. I’m not suggesting SentinelOne stock should trade at an equal valuation to those cybersecurity industry leaders, but if the company continues to deliver strong operating results, I think it could start to close the gap.
SentinelOne values its total addressable market at more than $100 billion, so it has barely scratched the surface of its opportunity, which leaves plenty of room for growth. As a result, Wall Street’s bullish consensus on the stock might be justified, so it could be a great addition to a diversified portfolio for 2026.