SentinelOne Rises 25% in a Month: Should You Still Buy the Stock?

Core Viewpoint - SentinelOne's shares have increased by 25% over the past month, outperforming both the Zacks Security industry and the broader Zacks Computer and Technology sector, which saw returns of 19.4% and 22.8% respectively, driven by its strong AI-powered portfolio and expanding clientele despite competition [1] Company Performance - SentinelOne's stock has underperformed compared to competitors like Okta, Broadcom, and Microsoft, which appreciated by 37.7%, 37.5%, and 26.5% respectively over the same period [4] - The company has provided positive guidance for Q1 fiscal 2026, expecting revenues around $228 million, indicating a 22% year-over-year growth, and for the entire fiscal 2026, revenues are expected to be between $1.007 billion and $1.012 billion, implying a 23% growth year-over-year [10][11] Product and Innovation - SentinelOne's Singularity platform offers a comprehensive AI-native security solution across multiple levels, including endpoint, cloud, identity, and data, through a single interface [3] - The Purple AI feature enhances investigation, real-time threat detection, and automated response, significantly reducing response times for enterprises [3] - The company has integrated its services with major platform solution providers like Palo Alto Networks, Fortinet, Okta, and Microsoft, enhancing security workflows for end users [6] Market Expansion - SentinelOne has established a strong partner base, including industry leaders like Alphabet, Lenovo, and Amazon Web Services (AWS), which aids in market reach [5] - In Q4 2025, 12+ new large Managed Security Service Providers adopted SentinelOne's AI SIEM, CNAPP, and Purple AI modules, contributing to recurring revenue growth [7] - The company received FedRAMP High Authorization for its Purple AI and other solutions, allowing it to sell services to federal agencies and critical infrastructure organizations, which is expected to drive top-line growth [9] Customer Growth - By the end of the previous quarter, SentinelOne had over 14,000 direct customers, with a 25% increase in customers having Annual Recurring Revenue (ARR) exceeding $100,000, totaling 1,411 such customers by January 2025 [7]