Core Viewpoint - SentinelOne Inc. is considered an undervalued AI stock, with a price target lowered to $16 from $19, while maintaining a Neutral rating due to the need for evidence of stabilized growth [1][3]. Financial Performance - In FQ3 2026, SentinelOne reported revenue of $259 million, marking a 23% year-over-year increase [2]. - The company achieved an annual recurring revenue (ARR) of $1.055 billion, exceeding the consensus estimate of $1.051 billion, with a 23% year-over-year growth [1][2]. - Remaining performance indicators showed a 35% increase in remaining performance obligations (RPO), reaching $1.3 billion [2]. Strategic Initiatives - SentinelOne is leveraging its Purple AI and Flex licensing models to enhance platform consolidation, with a 40% attach rate for Purple AI among new licenses [3]. - The Flex model facilitates larger, multi-solution deals, allowing customers to utilize the Singularity platform more dynamically [3]. - The company completed the acquisition of Observo AI for $225 million and Prompt Security for $180 million, enhancing its capabilities with a policy-driven data pipeline [3]. Future Outlook - For the full FY2026, SentinelOne anticipates total revenue of approximately $1.001 billion, reflecting a 22% year-over-year growth [4]. - The company operates as a cybersecurity provider, offering AI-powered autonomous threat prevention, detection, and response across various organizational endpoints and cloud workloads [4].