SentinelOne rose about 3 percent today, its second straight day of gains, and is now trading at its highest price in months. We think this is mostly a continuation of a strong run following several new partnerships with Amazon and ConnectWise.
Our view
The company is finally proving it can grow while also making a profit, which is a major milestone for a software firm. If you have been thinking about buying it, this is still a fair price to pay for a business that is winning more of the market. Owners should sit tight.
Expanded AWS partnership to manage AI security risks
SentinelOne is expanding its work with Amazon Web Services to help companies manage the security risks of building their own AI tools. The new integration connects SentinelOne's security software with Amazon Bedrock, a service that helps developers build and scale AI applications. This gives security teams a single place to watch for threats and enforce safety rules as they deploy new AI agents.
This is a smart move because as more companies rush to build internal AI tools, they are creating new ways for hackers to get in. By embedding its protection directly into the Amazon platform where these tools are built, SentinelOne makes its software harder to replace. It also helps the company stay relevant as business spending shifts away from traditional computers and toward new AI infrastructure.
New partnership with ConnectWise to reach more small businesses
The company is aligning its AI-driven defense tools more closely with ConnectWise, a platform used by thousands of managed service providers (MSPs). These MSPs act as the outsourced IT departments for smaller businesses that cannot afford their own security teams.
This is a smart move for growth. By making its software easier for these providers to manage at scale, SentinelOne can reach a massive base of smaller customers without having to sell to each one individually. It helps the company compete against larger rivals who are also racing to dominate this part of the market.
The company expanded its Wayfinder Frontier service, which combines elite security experts with advanced AI models from Anthropic. This service is designed to help businesses find and fix vulnerabilities before hackers can use AI to exploit them.
This matters because it helps SentinelOne sell more than just software. By bundling its automated platform with human expertise and high-end AI models, the company can charge more per customer and become more deeply embedded in how large enterprises handle their security.
New automated response features for the Singularity platform
The company introduced "closed-loop" response features, meaning its AI can now handle a security threat from the first alert all the way to fixing the problem. Security teams can set specific rules for where the AI is allowed to act on its own and where it needs to stop for a human to sign off.
This is the core of the company's strategy. By automating the work that usually requires a room full of expensive analysts, SentinelOne makes its product more valuable to customers who are struggling to find and pay for cybersecurity talent.
IDC MarketScape, a firm that evaluates technology vendors, ranked SentinelOne as a leader for its security services aimed at mid-sized companies. The report highlighted the company's ability to use AI to handle the heavy lifting of sorting through alerts at high speeds. While these rankings are common, they are helpful for the sales team when competing for new contracts. It confirms that the company's focus on automation is being recognized by industry analysts as a legitimate advantage over older, more manual ways of doing things.
Analysts recently showed a flurry of activity following the company's late May updates. Most analysts rate the stock a buy, but the average target of $20 is about 12% lower than the current price.
Average target$19.64-12%vs $22.23 today
TodayAvg price
Low $15High $24
Buy34 analysts
0Bearish
11Neutral
23Bullish
FirmRatingPrice TargetDate
Scotiabank
Sector Outperform
$23.50
7/6/2026
Goldman Sachs
Neutral
$14.50→$15.50
5/29/2026
Scotiabank
Sector Outperform
$15→$16
5/29/2026
D.A. Davidson
—
$15
5/29/2026
Wolfe Research
—
$20
5/29/2026
UBS
Neutral
$16
5/29/2026
Raymond James
—
$18
5/29/2026
Cantor Fitzgerald
Overweight
$24
5/27/2026
Jefferies
Buy
$20→$24
5/26/2026
Oppenheimer
Outperform
$18→$21
5/21/2026
Barclays
Equal Weight
$16→$19
5/20/2026
UBS
Neutral
$15
3/13/2026
SentinelOne earnings
Management has a perfect record of beating their own targets over the last year and a half. They consistently set a bar they can clear, which makes their forecasts easier to trust.
Earnings history
EstimateBeatMiss
SentinelOne past earnings results
Expected
Actual
Surprise
EPS
$0.02
$0.04
+83.3%
Revenue
$277M
$277M
-0.2%
Key highlights
Subscription growth accelerating: Annualized recurring revenue, which is the yearly value of all active customer contracts, grew 23% to $1,163 million. This reflects a pickup in speed compared to the 21% total revenue growth and indicates that the core subscription business is gaining momentum.
Profitability outlook raised: The company expects to earn between $115 million and $125 million in adjusted operating income for the full year, a significant jump from the $10.5 million it earned this quarter. This suggests management sees the business becoming much more efficient as it handles larger sales volumes.
Enterprise customer base expands: The number of customers spending $100,000 or more grew 17% to 1,702. While the company is adding these high-value accounts, the growth rate slowed compared to the previous year, showing that the sales team is facing a tougher environment for landing very large deals.
Profit margins turning positive: The adjusted operating margin reached 4% this quarter, a complete reversal from the 2% loss reported a year ago. This shows the company is finally keeping a portion of its sales as profit after paying its daily running costs.
Revenue guidance remains steady: Management expects second quarter revenue to land between $289 million and $291 million, which would represent roughly 5% growth from the current quarter. For the full year, the company is targeting total revenue between $1.195 billion and $1.205 billion.
Our take: This was a strong quarter that proves the business is finally becoming profitable. While the pace of adding big customers is cooling off, the jump to a 4% adjusted operating margin shows the company is managing its costs well. The raised profit outlook for the year makes the long-term case more attractive.
SentinelOne’s next earnings date
Q2 2027
AUG
27
Expectation
EPS
$0.07
Revenue
$290M
Metrics we are tracking
Metric
Expectations
Status
ARR Growth
Sustaining growth above 22% year-over-year
23% YoY in Q1 FY2027
Enterprise Customers
Adding at least 75 customers paying >$100k every quarter
1,702 as of April 30, 2026
Non-GAAP Operating Margin
Remaining positive and expanding toward a 20% long-term target
4% in Q1 FY2027
Net Revenue Retention
Staying above 110% to show existing customers are spending more
