SentinelOne - 2025 Cyber "It" Stock To Own?
The Company.
One of the up & coming cybersecurity growth stocks that are trading at more reasonable valuations is $SentinelOne, Inc(S)$.
SentinelOne is a cybersecurity company that plans to replace all human analysts with AI algorithms across its Singularity XDR (extended detection and response) platform.
It believes that automated approach is faster and less prone to making errors.
It deploys its XDR services through a mix of on-site appliances and cloud-based services.
That hybrid approach insulates it from internet outages, that in its worst form, can disrupt fully cloud-native cybersecurity platforms like $CrowdStrike Holdings, Inc.(CRWD)$’s Falcon.
Comparison Against Peers.
How does SentinelOne stack up against its Mega cap peers like CrowdStrike & $Palo Alto Networks(PANW)$ ?
Although, all 3 of them operate in the cybersecurity space and offer overlapping capabilities, their primary focus and strengths, have key distinctions: (see below)
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SentinelOne emphasizes AI-powered threat detection and response, offering a comprehensive platform for various security needs.
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CrowdStrike is renowned for its endpoint security and threat intelligence, boasting a large customer base and extensive threat intelligence network.
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Palo Alto Networks is a dominant force in network security, with a strong presence in firewalls and a comprehensive cloud security platform.
The Earnings.
Earnings per share for Q3 2025
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Its earnings per share (EPS) for Q3 2025 was $0.00.
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Not trying to shield the company; it is at least, not “loss per share” for this 3½ years old company, unlike others similar age listed companies eg. $NIO Inc.(NIO)$. $XPeng Inc.(XPEV)$
Revenue for Q3 2025
SentinelOne's revenue more than doubled in fiscal 2021, 2022, and 2023 (ended in January 2023). (see above)
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Looking at SentinelOne’s quarterly earnings, it is evident that revenue is on the rise.
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It’s latest quarter (Q3 2025), has beaten analysts’ expectations marginally even. (see above)
It continued to gain big customers (which generate at least $100,000 in annual recurring revenue), while its dollar-based net revenue retention rate stayed comfortably above 100%.
Its revenue rose +47% in FY 2024 as the macro headwinds made it harder to land new contracts, and it expects growth this year.
That slowdown, along with SentinelOne's persistent losses, rattled the bulls.
The Outlook.
From fiscal 2024 to fiscal 2027, analysts still expect its revenue to grow at a compound annual growth rate (CAGR) of 27% as the macro environment stabilizes.
Its stock still looks reasonably valued at less than 8 times next year's sales, and it should narrow its net losses as economies of scale kick in.
Its low enterprise value of $7 billion could also make it a tempting takeover target for a larger industry peer.
My viewpoints : (mine only)
As AI continues to get more sophisticated (see below), its penetration will become more pervasive and like it or not, becomes more prone to abuse, when fallen into the wrong hands.
In the dawn of the AI age, AI-systems are increasingly being used to control critical infrastructure, store sensitive data, and make important decisions.
Inevitably, it makes them attractive targets for AI-driven cyberattacks.
It therefore, makes sense to leverage on AI-driven cybersecurity products to ringfence and protect a company’s assets from unwanted advances.
In future, relying on human intelligence, reaction and remedial action may prove to be late.
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Do you think AI adoption is going to be more and more common going forward ?
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Do you think it makes sense to use AI (SentinelOne) to fight AI attacks?
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