SentinelOne, Inc. (S) stock is trending upward on Wednesday following the company’s strong second-quarter earnings report. The cybersecurity firm surpassed analysts’ expectations on both revenue and earnings, demonstrating continued growth and strong market performance.
Here’s a breakdown of the key takeaways:
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Earnings:
SentinelOne reported a loss of 22 cents per share for the second quarter of its fiscal year 2025, which aligned with analysts’ consensus estimate.*
Revenue:
The company generated revenue of $198.90 million, exceeding analysts’ projections of $197.45 million. This represents a significant 33.11% increase in sales compared to the same period last year.*
Annualized Recurring Revenue (ARR):
SentinelOne reported ARR of $806 million, signifying a 32% year-over-year growth. Notably, the company saw a 24% increase in customers with ARR of $100,000 or more. This indicates strong customer acquisition and retention.*
Guidance:
SentinelOne provided optimistic guidance for the third quarter and the full fiscal year 2025. The company expects revenue of $209.5 million for the third quarter, exceeding analysts’ estimates of $197.44 million. For the full fiscal year, SentinelOne anticipates revenue of $815 million, slightly surpassing analysts’ estimates of $813.03 million.Analyst Reactions:
Following the strong earnings report, several analysts adjusted their price targets for SentinelOne. These adjustments reflect a positive sentiment towards the company’s future prospects.* Needham analyst Alex Henderson reiterated a Buy rating on SentinelOne and maintained a $29 price target.
* Bernstein analyst Peter Weed maintained an Outperform rating and lowered the price target from $37 to $32.
* WestPark Capital analyst Casey Ryan reiterated a Buy rating and maintained a $34 price target.
* Morgan Stanley analyst Hamza Fodderwala maintained an Overweight rating and raised the price target from $27 to $29.
* Loop Capital analyst Yun Kim maintained a Buy rating and raised the price target from $25 to $30.
* Wells Fargo analyst Andrew Nowinski maintained an Overweight rating and raised the price target from $29 to $30.
* Scotiabank analyst Patrick Colville maintained a Sector Perform rating and raised the price target from $18 to $25.
* JMP Securities analyst Trevor Walsh reiterated a Market Outperform rating and maintained a $33 price target.
* Barclays analyst Saket Kalia maintained an Equal-Weight rating and raised the price target from $26 to $28.
* DA Davidson analyst Rudy Kessinger maintained a Neutral rating and raised the price target from $18.5 to $23.
