SentinelOne Inc. (NYSE:S) posted second-quarter fiscal 2026 results that modestly outpaced expectations, prompting several Wall Street analysts to reiterate bullish views and lift price forecasts.
Revenue came in at $242.2 million, up 22% year-over-year and in line with consensus estimates, while non-GAAP EPS of 4 cents beat forecasts of 3 cents. Annual recurring revenue (ARR) grew 24% to $1 billion for the second straight quarter, and large customers spending more than $100,000 annually increased 23% to 1,513.
SentinelOne ended the quarter with $1.2 billion in cash and investments. Management guided third-quarter revenue of $256 million and raised full-year revenue expectations to $998 million-$1.002 billion, up slightly from prior forecasts and closely aligned with analyst projections.
WestPark Capital analyst Casey Ryan reaffirmed a Buy rating and $25 price forecast, emphasizing SentinelOne’s ability to combine steady top-line growth with improving profitability. He highlighted gross margins rising to 73.3%, keeping the company on track toward its 75-80% long-term forecast.
Ryan praised the AI-powered Singularity platform as a differentiator against rising cyber threats and staffing shortages and added that SentinelOne’s consistent execution and balance sheet strength make it a potential takeover candidate for either strategic or private equity buyers.
Needham & Company analyst Mike Cikos reiterated a Buy and raised his forecast to $23, describing SentinelOne’s quarter as a turning point in momentum. He highlighted record net-new ARR growth of 90% sequentially, well above expectations, fueled by strength across new and existing customers.
Cikos noted Purple AI’s attach rates above 30% and triple-digit bookings growth as evidence of accelerating adoption, while the Data segment continues to scale after surpassing $100 million in ARR last quarter.
He also pointed to the early success of SentinelOne Flex, the company’s new licensing model, which has already landed an eight-figure deal. While the $180 million acquisition of Prompt Security creates a short-term margin headwind (~80 bps), Cikos sees it strategically enhancing the company’s generative AI security portfolio.
Other analysts also raised their forecasts following the print. UBS’ Roger Boyd maintained a Neutral rating and lifted his price forecast from $19 to $21. Wells Fargo’s Andrew Nowinski reiterated an Equal-Weight rating while moving his forecast from $18 to $19. Barclays’ Saket Kalia kept an Equal-Weight stance and raised his forecast from $19 to $21. Baird’s Shrenik Kothari remained more constructive with an Outperform rating and a higher forecast of $23, up from $21.
Overall, analysts see SentinelOne’s expanding platform, AI-driven capabilities, and execution on both growth and margin goals as positioning the company well for long-term gains. While management’s modest guidance bump reflects caution around the timing of large deals, the Street generally views the stock as attractively valued, with multiple product levers, ongoing platform adoption, and M&A potential supporting upside.
Price Action: S shares are trading higher by 5.37% to $18.56 at last check Friday.
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