The last time we covered SentinelOne (NYSE: S ) was almost 9 months ago. Since then, the stock has strongly underperformed the S&P 500. We suppose the main reasons are the slowdown of revenue growth and economic uncertaintyInvest Heroes LLC is a CIS-based research firm founded in 2018. Since then, we provide equity and fixed income research services which become more and more well-known locally among both professional investors and private clients. Here’s what we do: - Cover top 120+ Russian, US and Chinese ...

Core Viewpoint - Investing in promising companies during their growth phase can lead to substantial long-term wealth generation [1] Company Overview - SentinelOne is a smaller player in the cybersecurity market compared to giants like CrowdStrike and Zscaler, but it has strong fundamentals supporting growth and margin expansion [2] Business Expansion - The company has transitioned from being primarily an endpoint security provider to expanding into cloud security, AI-native SIEM solutions, and generative AI-powered security [4] Financial Performance - Annual recurring revenue (ARR) increased by 24% year-over-year to over $1 billion in Q2 of fiscal 2026, with total revenue rising 22% to $242 million and gross margins at 79% [5] - The operating margin turned positive at 2%, and free cash flow was also positive, with the company ending Q2 with $1.2 billion in cash and no debt [5] Future Profitability - Management anticipates reporting its first full year of operating profit in fiscal 2026, which could significantly impact share prices [6] Customer Adoption - The unified AI, data, and security platform strategy is attracting new customers and increasing adoption within existing accounts, with large enterprises opting for the Singularity platform [6] AI-Powered Solutions - The AI-powered security assistant, Purple AI, is experiencing triple-digit growth and had an attach rate of over 30% for licenses sold in Q2 [7] Licensing Model - The new SentinelOne Flex licensing model facilitates customer trials of additional modules, potentially increasing deal sizes and client retention [8] Generative AI Security - The rise of generative AI technologies has introduced new cybersecurity risks, which SentinelOne is addressing through its acquisition of Prompt Security [9][10] Market Positioning - The acquisition of Prompt Security positions SentinelOne as a vendor capable of securing both traditional IT systems and AI-driven workloads, presenting a long-term growth opportunity [11] Valuation Metrics - SentinelOne shares are trading at a price-to-sales (P/S) ratio of nearly 7, significantly lower than peers like CrowdStrike and Zscaler, which have P/S ratios of 23.8 and 16.5, respectively [12] Revenue Forecast - Analysts project that SentinelOne's revenue will more than double from around $1 billion in fiscal 2026 to nearly $2.23 billion in fiscal 2030, with adjusted earnings per share expected to rise over 450% during the same period [14] Long-Term Growth Potential - If the company meets its revenue and earnings targets, share prices could increase significantly, with potential for improved valuation multiples [15] Investment Horizon - The company is in a developmental stage similar to Amazon's early years, requiring patience for financial performance to reflect its growth potential [16]

Group 1 - SentinelOne, Inc. ("S1") is considered one of the most overlooked and misunderstood stocks in the market today [1] - The company is compared to Palantir Technologies Inc., suggesting potential for significant returns [1] Group 2 - The Financial Prophet's All-Weather Portfolio has achieved a 41% year-to-date return in 2025, indicating strong performance [3] - The report emphasizes the importance of crucial information provided before market opening to enhance investment decisions [3] - A Covered Call Dividend Plan is mentioned, which could yield a 50% return on certain investments [3]

Core Viewpoint - The article discusses the potential for investing in undervalued stocks that are mispriced by the market as the third quarter comes to an end [1]. Group 1 - The article suggests that investors should consider joining platforms that provide insights on undervalued stocks [1].

Core Viewpoint - SentinelOne is experiencing rapid growth in the cybersecurity sector while being one of the most affordable stocks in the industry [1][14]. Financial Performance - For fiscal 2026 second quarter, SentinelOne reported revenue of $242.2 million, reflecting a 22% year-over-year increase, slightly exceeding management's guidance of $242 million [9]. - The company's annual recurring revenue (ARR) grew by 24%, surpassing the $1 billion milestone for the first time [9]. - Management raised its full-year revenue guidance for fiscal 2026 from $998.5 million to $1 billion at the midpoint of the forecast range [10]. - Despite a GAAP loss of $72 million, adjusted (non-GAAP) profit surged by 277% to $13.2 million, indicating strong operational performance [12]. Market Position and Growth Potential - SentinelOne is growing faster than major competitors like Palo Alto Networks and CrowdStrike, which reported revenue increases of 16% and 21%, respectively [11]. - The company has a total addressable market valued at over $100 billion, suggesting significant growth potential as it has only recently crossed $1 billion in ARR [16]. Analyst Sentiment - The majority of analysts tracked by The Wall Street Journal have given SentinelOne a buy rating, with none recommending a sell [3][13]. - The average price target for the stock is $23.20, indicating a potential upside of 25% over the next 12 to 18 months, with a Street-high target of $30 suggesting a possible increase of up to 62% [13]. Competitive Advantage - SentinelOne's Singularity platform, powered by AI, autonomously detects and mitigates cyber threats, outperforming peers in effectiveness as measured by MITRE's 2024 Evaluations [7][8]. - The platform features capabilities such as detailed incident summaries and one-click remediation, which enhance operational efficiency for cybersecurity managers [6].

Core Insights - SentinelOne (S) shares have increased by 7.1% following the release of its second-quarter fiscal 2026 results, driven by strong new customer acquisitions, platform adoption, and growth in AI-powered security solutions [1][8] - The company reported earnings of 4 cents per share, exceeding the Zacks Consensus Estimate by 33.33%, compared to 1 cent per share in the same quarter last year [1][8] Revenue and Growth - Revenues for the second quarter reached $242.2 million, reflecting a year-over-year increase of 21.7% and surpassing the consensus estimate by 0.07% [2][8] - Annualized recurring revenues (ARR) grew by 24% year over year to $1 billion, with customers generating over $100,000 in ARR increasing by 23% to 1,513 as of July 31, 2025 [3][8] Operating Performance - The adjusted gross margin for the reported quarter was 79%, a decrease of 50 basis points year over year [4] - Total operating expenses rose by 13.1% year over year to $186.1 million, driven by increases in research and development (up 29%), sales and marketing (up 5.8%), and general and administrative expenses (up 15.3%) [4] - The non-GAAP operating margin improved to 2.2%, up from a loss of 3.2% in the previous year [4] Financial Position - As of July 31, 2025, SentinelOne had cash, cash equivalents, and investments totaling $1.2 billion [5] - Free cash outflow increased by 31.5% year over year to $7.1 million, with a free cash outflow margin remaining stable at 3% [5] Future Guidance - For the third quarter of fiscal 2025, SentinelOne anticipates revenues of $256 million, indicating nearly 22% year-over-year growth [6] - The company has raised its fiscal 2026 revenue guidance to a range of $998 million to $1 billion, representing a 22% year-over-year growth [6][7] - The adjusted gross margin for fiscal 2026 is expected to be between 78.5% and 79% [6]

Group 1: Reddit - Reddit is identified as a fast-growing tech stock with a market cap of $40 billion, showing a year-over-year revenue growth rate of 43% since late 2022, and a record 78% growth in Q2 [4][7] - The platform has seen a 21% increase in daily active unique visitors, reaching 110 million in Q2, indicating significant user growth potential compared to larger competitors like Meta Platforms [5][6] - The stock has already increased by over 500% since its IPO in 2024, with predictions suggesting it could increase in value by as much as six times over the next decade [7] Group 2: Roku - Roku remains the number one streaming platform in North America despite a decline of over 80% from its 2021 high, and it continues to expand in Latin America and Europe [8][9] - The company is expected to benefit from increased ad revenues as streaming viewership surpasses traditional TV in the U.S., with a 17% year-over-year increase in hours of content streamed [9][10] - Roku's price-to-sales (P/S) ratio is 3.2, which is close to the S&P 500 average, and if it rises above 10, it could become a multibagger stock [11][12] Group 3: SentinelOne - SentinelOne is a cybersecurity company with a unique AI-driven technology platform that has been recognized as a leader in endpoint security for five consecutive years [14] - Despite a 75% decline since its IPO in late 2021, the company has a revenue of $864 million over the last four quarters and a significant amount of cash on its balance sheet, allowing for continued growth [15][16] - The enterprise-value-to-revenue ratio of SentinelOne is approximately 5, which is significantly lower than its peers, suggesting potential for substantial stock appreciation as profitability improves [17][18]

SentinelOne Inc. ( S ) remains one of my favorite hidden "diamond stocks." The company’s recent Q2 '26 results reveal exactly why I believe this. Many investors and analysts still focus on competitive pressures and macroeconomic volatility; however, they oftenI am an experienced Risk Management Business Analyst at a Systemic Greek Bank, with a strong background in finance and risk analysis. I hold an MSc in Applied Risk Management from the University of Athens and have completed the ACA Certificate Level. M ...

Group 1 - Caterpillar's stock fell by 2.3% as the company raised its annual tariff cost expectations [1] - Dell's stock dropped by 7.3% due to Q3 profit forecasts falling short of expectations [1] - Autodesk's stock increased by 11.4% after reporting Q2 earnings that exceeded expectations [1] - SentinelOne's stock rose by 8.8% after the company raised its full-year revenue guidance for fiscal year 2026 [1] - Alibaba's stock gained 7.8% as its cloud business accelerated growth and it developed a more advanced AI chip [1]

Financial Data and Key Metrics Changes - Total ARR grew 24% year over year, surpassing $1,000,000,000, marking a significant milestone in the company's growth journey [7][35] - Revenue increased by 22% year over year to $242,000,000, with international markets growing 27% and representing 38% of total revenue [36] - Net new ARR added in the quarter was $53,000,000, significantly exceeding expectations [35][36] - Gross margin maintained at 79%, with operating profitability of 2% and a net income margin of 5% [38][39] Business Line Data and Key Metrics Changes - Strong contributions from new customer additions and expansion with existing accounts, particularly in AI, data, cloud, and endpoint solutions [8][36] - Purple AI and data solutions showed triple-digit growth, with record bookings from data solutions [18][36] - Endpoint bookings growth accelerated to the highest level in the past year, reflecting strong demand [23] Market Data and Key Metrics Changes - International markets contributed significantly to revenue growth, indicating an expanding global footprint [36][41] - The company was recognized as a leader in the Gartner Magic Quadrant for endpoint protection platforms for the fifth consecutive year [23] Company Strategy and Development Direction - The launch of SentinelOne Flex is aimed at enhancing customer adoption of the Singularity platform, providing a flexible licensing model [10][11] - The acquisition of Prompt Security is a strategic move to secure generative AI usage and enhance the Singularity platform [24][40] - The company is focused on unifying AI, data, and security into a single platform, positioning itself as a leader in AI-powered cybersecurity [30][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand signals and market momentum, while remaining cautious about macroeconomic conditions that could affect deal timing [41][42] - The company raised its full-year revenue outlook, expecting revenue in the range of $998,000,000 to $1,020,000,000, representing 22% year-over-year growth [42][43] Other Important Information - The company ended the quarter with $1,200,000,000 in cash and no debt, providing flexibility for strategic capital allocation [39] - Remaining performance obligations grew 26% to $1,200,000,000, reflecting customer trust and commitment to innovation [38] Q&A Session Summary Question: Can you provide insights on the expansion metrics and platform adoption? - Management noted strong contributions from both new logos and existing customer expansions, with a balanced split between the two [50][51] Question: What guidance can you provide for net new ARR in Q3? - Management refrained from providing formal ARR guidance but indicated an improved view based on Q2 results and updated revenue outlook [55][56] Question: How is the Flex model impacting financials? - Flex deals will be similar to other ARR contracts, with revenue recognized ratably over the contract duration [59][63] Question: What are the expectations for the Prompt acquisition's impact on revenue? - Management highlighted the significant potential for Prompt to contribute to revenue in the future, particularly in securing generative AI usage [65][67] Question: Can you elaborate on the U.S. versus international revenue mix? - International revenue represented 38% of total revenue, showing strong performance and growth [90][91]