Should You Buy, Sell or Hold SentinelOne Stock Before Q4 Earnings?

Core Viewpoint - SentinelOne is expected to report its fourth-quarter fiscal 2025 results on March 12, with anticipated revenues of $222 million, reflecting a year-over-year growth of 27.47$222.03 million, indicating a slight increase from the company's own forecast [2]. - The consensus estimate for earnings remains unchanged at 1 cent per share, compared to a loss of 2 cents in the same quarter last year [2]. - SentinelOne has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 62.50% [3]. Market Conditions and Challenges - The company faces challenging macroeconomic conditions and intense competition in the cybersecurity sector [5]. - Despite these challenges, the adoption of the Singularity platform is expected to positively impact the fiscal fourth-quarter performance [5]. Product and Technology Developments - The Singularity platform, enhanced by Purple AI, is driving significant growth and adoption, providing comprehensive enterprise security and accelerating threat response [6]. - The platform's capabilities are expected to address a total market worth over $100 billion, with specific addressable markets for various security solutions [16]. Customer Growth and ARR - The number of customers with more than$100,000 in Annual Recurring Revenue (ARR) grew by 24% year-over-year to 1,310 in the fiscal third quarter [7]. - The Zacks Consensus Estimate for fourth-quarter fiscal 2025 ARR is $921 million, suggesting a year-over-year growth of 27.2% [8]. Stock Performance - Over the past 12 months, SentinelOne shares have declined by 27.9%, underperforming the broader Zacks Computer and Technology sector, which returned 11.1% [11]. - The stock is currently trading at a forward 12-month price/sales ratio of 6.1X, slightly above the sector's 6.06X, indicating a stretched valuation [12]. Strategic Partnerships - SentinelOne's partnerships with major companies like Alphabet, Lenovo, Amazon, and ServiceNow are enhancing its market reach and customer acquisition [17]. - Recent collaborations, such as the partnership with Lenovo to pre-install the Singularity platform on enterprise PCs, are expected to significantly increase market penetration [19].