SentinelOne Reports Q3 Earnings Exceeding Expectations, Year-over-Year Revenue Growth, Stock Prices Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy S?
Source: NASDAQ.COM
SentinelOne's Q3 Performance: SentinelOne reported Q3 fiscal 2026 earnings of 7 cents per share, exceeding estimates by 40%, with revenues of $258.9 million, a 23% year-over-year increase. Annualized recurring revenues grew to $1.06 billion, driven by strong bookings from emerging products.
Stock Performance and Market Position: Despite positive earnings, SentinelOne's shares fell 11.62% and have decreased 34.1% over the past year, contrasting with a 25.1% rise in the broader Computer & Technology sector. The company holds a Zacks Rank #3 (Hold).
Future Projections: For Q4 fiscal 2026, SentinelOne anticipates revenues of $271 million, a 20.2% increase year-over-year, with an expected adjusted operating margin improvement to 5%. The full fiscal year revenue forecast is $1 billion.
Comparative Company Performance: Other companies in the sector, such as Advanced Energy Industries, Digital Turbine, and Amphenol, have shown significant stock price increases year-to-date, with Zacks Rank #1 (Strong Buy) ratings, highlighting their strong market positions.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy S?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on S
Wall Street analysts forecast S stock price to rise
21 Analyst Rating
13 Buy
8 Hold
0 Sell
Moderate Buy
Current: 13.130
Low
16.00
Averages
21.11
High
28.00
Current: 13.130
Low
16.00
Averages
21.11
High
28.00
About S
SentinelOne, Inc. is an artificial intelligence (AI)-powered cybersecurity provider. The Company’s Singularity Platform delivers AI-powered autonomous threat prevention, detection, response, and exposure management capabilities across an organization’s endpoints, cloud workloads, and identity credentials. The Company’s Singularity platform ingests, correlates, and queries petabytes of structured and unstructured data from a myriad of ever-expanding disparate external and internal sources in real time. Its distributed AI models run both locally on every endpoint and every cloud workload, as well as on its cloud platform. The Company through PingSafe Pte. Ltd. (PingSafe), which is a cloud native application protection platform (CNAPP) to bolster its cloud security product suite. By adding PingSafe’s CNAPP to its Cloud Workload Security (CWS), it provides enterprises with a comprehensive cloud security coverage that drives security, improved posture, and autonomous protection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Power Solutions and Ross Stores See Active Options Trading
- Power Solutions Options Activity: Power Solutions International Inc (PSIX) saw options trading volume of 2,366 contracts today, representing approximately 236,600 shares, which is about 46.3% of its average daily trading volume of 510,925 shares over the past month, indicating heightened market interest in its future performance.
- High Volume Put Options: Within PSIX, the $60 strike put option has been particularly active, with 229 contracts traded today, equating to approximately 22,900 shares, reflecting investor expectations regarding potential downside risks for the stock.
- Ross Stores Options Activity: Ross Stores Inc (ROST) experienced an options trading volume of 11,160 contracts today, representing around 1.1 million shares, or approximately 45.9% of its average daily trading volume of 2.4 million shares over the past month, highlighting significant investor focus on its stock price volatility.
- Surge in Put Option Volume: For ROST, the $195 strike put option saw trading volume of 1,600 contracts, representing about 160,000 shares, indicating increasing market concerns regarding potential price declines in the future.
See More
Cybersecurity Budgets Continue to Grow Amid Sales Cycle Elongation
- Sales Cycle Elongation: Wedbush analysts noted that while sales cycles have reached an all-time high of 109 days, there have been no lost deals, indicating sustained demand and resilience in the cybersecurity market.
- Significant Budget Increases: Analysts reported a 20% increase in enterprise budgets and an additional 20% in AI budgets as of January 1, resulting in a 33% net increase in overall IT budgets, reflecting a strong commitment to cybersecurity and AI investments.
- Trend Towards Product Diversification: Approximately 80% of deals are seeing upward revisions in quotes, as organizations emphasize revenue growth across multiple products rather than relying on a single product, leading to increased training demands for sales teams to meet new market objectives.
- Rising Demand for AI Tools: As more organizations embed AI to enhance business operations, companies like CrowdStrike are driving demand for AI tools in cyber protection and awareness, although the overall impact from threats like Anthropic remains limited.
See More
Insight Holdings Fully Exits SentinelOne Position Amid Market Challenges
- Complete Exit: According to a February 17, 2026 SEC filing, Insight Holdings Group, LLC sold its entire position of 8,425,026 shares in SentinelOne during Q4, with an estimated transaction value of $148.36 million, indicating a significant loss of confidence in the company.
- Poor Market Performance: As of February 17, 2026, SentinelOne's stock was priced at $13.40, down 45% over the past year, significantly underperforming the S&P 500 by 57.88 percentage points, reflecting widespread pessimism in the cybersecurity sector.
- Portfolio Reallocation: This transaction reduced Insight Holdings' stake in SentinelOne from over 9% to just 0.7%, suggesting a strategic shift away from the cybersecurity sector, likely due to the company's ongoing losses and the industry's overall poor performance.
- Uncertain Profitability Outlook: Despite a relatively low price-to-sales ratio of less than 5, SentinelOne's continuous net losses and lack of a clear path to profitability have led investors to adopt a cautious stance, with Insight's exit further underscoring the market's lack of confidence in the company's future.
See More
Cybersecurity Stocks Plummet Following Product Launch
- Severe Market Reaction: Following Anthropic's announcement of 'Claude Code Security' on February 20, cybersecurity stocks experienced a rapid decline, leading to a seven-week losing streak for the sector, represented by the First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR), marking the longest downturn since 2015 and reflecting investor concerns about the industry's outlook.
- Product Impact Analysis: Although Bank of America analyst Madeline Brooks believes the market reaction may be exaggerated, she acknowledges that the launch of Claude Code Security has indeed shaken investor confidence in cybersecurity stocks, particularly given the tool's focus on pre-production code scanning, which could affect developers' security processes.
- Technological Advantages Remain: Brooks emphasizes that major cybersecurity platforms still possess structural advantages, collecting vast amounts of proprietary data from endpoints, networks, and cloud systems, providing visibility and real-time monitoring capabilities that AI tools cannot match, ensuring rapid threat response.
- Future Outlook: Despite the potential of AI tools to enhance security, Brooks argues that they serve more as augmentation layers rather than platform replacements, highlighting that diversified cybersecurity vendors remain best positioned in complex environments and will continue to maintain competitive strength in the future.
See More
Software Stocks Rebound as AI Fears Ease After Anthropic Event
- Software Stock Recovery: Following Anthropic's enterprise agents event, shares of Salesforce, Docusign, and LegalZoom rose by 4%, indicating a recovery in investor confidence as fears surrounding AI threats diminish.
- Product Launch: Anthropic's updates to Claude Cowork enable companies to integrate productivity tools into various applications like Salesforce and Intuit, enhancing applicability in sectors such as financial analysis and human resources, which contributed to stock price increases for related firms.
- Analyst Insights: Analysts at Wedbush Securities noted that the competitive risk posed by AI to the software industry is overstated, asserting that existing software ecosystems and data environments will not be fully replaced by new AI tools, which helps stabilize market sentiment.
- Market Reaction: Despite recent pressures from AI tools on software and cybersecurity stocks, companies like CrowdStrike and Okta saw slight gains on Tuesday, reflecting a gradual market adaptation and rebound from AI-related fears.
See More
Anthropic Launches New AI Tools in Partnership with Major Enterprises
- New Tool Launch: Anthropic has unveiled AI tools that integrate with major enterprises like Salesforce, Intuit, and Docusign, allowing companies to incorporate Claude Cowork into various enterprise applications, thereby enhancing productivity and strengthening market competitiveness.
- Market Rebound: Following Anthropic's announcement of new partnerships, shares of Salesforce, Docusign, and Thomson Reuters rose by 4%, 4%, and 11% respectively, indicating a restoration of investor confidence in the software sector's outlook.
- Analyst Insights: Analysts at Wedbush Securities noted that the threat of AI to the software industry has been overstated, arguing that existing software ecosystems and data environments will not be completely replaced by new tools, which alleviates market panic.
- Stock Market Fluctuations: Despite recent declines in software and cybersecurity stocks due to AI threats, companies like CrowdStrike and Okta saw their stock prices rebound after Anthropic's event, suggesting an increasing acceptance of AI tools in the market.
See More
Power Solutions and Ross Stores See Active Options Trading
- Power Solutions Options Activity: Power Solutions International Inc (PSIX) saw options trading volume of 2,366 contracts today, representing approximately 236,600 shares, which is about 46.3% of its average daily trading volume of 510,925 shares over the past month, indicating heightened market interest in its future performance.
- High Volume Put Options: Within PSIX, the $60 strike put option has been particularly active, with 229 contracts traded today, equating to approximately 22,900 shares, reflecting investor expectations regarding potential downside risks for the stock.
- Ross Stores Options Activity: Ross Stores Inc (ROST) experienced an options trading volume of 11,160 contracts today, representing around 1.1 million shares, or approximately 45.9% of its average daily trading volume of 2.4 million shares over the past month, highlighting significant investor focus on its stock price volatility.
- Surge in Put Option Volume: For ROST, the $195 strike put option saw trading volume of 1,600 contracts, representing about 160,000 shares, indicating increasing market concerns regarding potential price declines in the future.
See More
Cybersecurity Budgets Continue to Grow Amid Sales Cycle Elongation
- Sales Cycle Elongation: Wedbush analysts noted that while sales cycles have reached an all-time high of 109 days, there have been no lost deals, indicating sustained demand and resilience in the cybersecurity market.
- Significant Budget Increases: Analysts reported a 20% increase in enterprise budgets and an additional 20% in AI budgets as of January 1, resulting in a 33% net increase in overall IT budgets, reflecting a strong commitment to cybersecurity and AI investments.
- Trend Towards Product Diversification: Approximately 80% of deals are seeing upward revisions in quotes, as organizations emphasize revenue growth across multiple products rather than relying on a single product, leading to increased training demands for sales teams to meet new market objectives.
- Rising Demand for AI Tools: As more organizations embed AI to enhance business operations, companies like CrowdStrike are driving demand for AI tools in cyber protection and awareness, although the overall impact from threats like Anthropic remains limited.
See More
Insight Holdings Fully Exits SentinelOne Position Amid Market Challenges
- Complete Exit: According to a February 17, 2026 SEC filing, Insight Holdings Group, LLC sold its entire position of 8,425,026 shares in SentinelOne during Q4, with an estimated transaction value of $148.36 million, indicating a significant loss of confidence in the company.
- Poor Market Performance: As of February 17, 2026, SentinelOne's stock was priced at $13.40, down 45% over the past year, significantly underperforming the S&P 500 by 57.88 percentage points, reflecting widespread pessimism in the cybersecurity sector.
- Portfolio Reallocation: This transaction reduced Insight Holdings' stake in SentinelOne from over 9% to just 0.7%, suggesting a strategic shift away from the cybersecurity sector, likely due to the company's ongoing losses and the industry's overall poor performance.
- Uncertain Profitability Outlook: Despite a relatively low price-to-sales ratio of less than 5, SentinelOne's continuous net losses and lack of a clear path to profitability have led investors to adopt a cautious stance, with Insight's exit further underscoring the market's lack of confidence in the company's future.
See More
Cybersecurity Stocks Plummet Following Product Launch
- Severe Market Reaction: Following Anthropic's announcement of 'Claude Code Security' on February 20, cybersecurity stocks experienced a rapid decline, leading to a seven-week losing streak for the sector, represented by the First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR), marking the longest downturn since 2015 and reflecting investor concerns about the industry's outlook.
- Product Impact Analysis: Although Bank of America analyst Madeline Brooks believes the market reaction may be exaggerated, she acknowledges that the launch of Claude Code Security has indeed shaken investor confidence in cybersecurity stocks, particularly given the tool's focus on pre-production code scanning, which could affect developers' security processes.
- Technological Advantages Remain: Brooks emphasizes that major cybersecurity platforms still possess structural advantages, collecting vast amounts of proprietary data from endpoints, networks, and cloud systems, providing visibility and real-time monitoring capabilities that AI tools cannot match, ensuring rapid threat response.
- Future Outlook: Despite the potential of AI tools to enhance security, Brooks argues that they serve more as augmentation layers rather than platform replacements, highlighting that diversified cybersecurity vendors remain best positioned in complex environments and will continue to maintain competitive strength in the future.
See More
Software Stocks Rebound as AI Fears Ease After Anthropic Event
- Software Stock Recovery: Following Anthropic's enterprise agents event, shares of Salesforce, Docusign, and LegalZoom rose by 4%, indicating a recovery in investor confidence as fears surrounding AI threats diminish.
- Product Launch: Anthropic's updates to Claude Cowork enable companies to integrate productivity tools into various applications like Salesforce and Intuit, enhancing applicability in sectors such as financial analysis and human resources, which contributed to stock price increases for related firms.
- Analyst Insights: Analysts at Wedbush Securities noted that the competitive risk posed by AI to the software industry is overstated, asserting that existing software ecosystems and data environments will not be fully replaced by new AI tools, which helps stabilize market sentiment.
- Market Reaction: Despite recent pressures from AI tools on software and cybersecurity stocks, companies like CrowdStrike and Okta saw slight gains on Tuesday, reflecting a gradual market adaptation and rebound from AI-related fears.
See More
Anthropic Launches New AI Tools in Partnership with Major Enterprises
- New Tool Launch: Anthropic has unveiled AI tools that integrate with major enterprises like Salesforce, Intuit, and Docusign, allowing companies to incorporate Claude Cowork into various enterprise applications, thereby enhancing productivity and strengthening market competitiveness.
- Market Rebound: Following Anthropic's announcement of new partnerships, shares of Salesforce, Docusign, and Thomson Reuters rose by 4%, 4%, and 11% respectively, indicating a restoration of investor confidence in the software sector's outlook.
- Analyst Insights: Analysts at Wedbush Securities noted that the threat of AI to the software industry has been overstated, arguing that existing software ecosystems and data environments will not be completely replaced by new tools, which alleviates market panic.
- Stock Market Fluctuations: Despite recent declines in software and cybersecurity stocks due to AI threats, companies like CrowdStrike and Okta saw their stock prices rebound after Anthropic's event, suggesting an increasing acceptance of AI tools in the market.
See More
