Shares of SentinelOne (S) fell in after-hours trading after the cybersecurity company reported earnings for its second quarter of Fiscal Year 2025, which included guidance that was in line with expectations. Earnings per share came in at $0.01, beating analysts’ consensus estimate of -$0.01 per share.
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Sales increased by 33.1% year-over-year, with revenue hitting $198.9 million and beating analysts’ expectations of $197.4 million. In addition, annualized recurring revenue (ARR) grew by 32% to $806 million, while the number of customers contributing more than $100,000 in ARR surged by 24% to 1,233.
In terms of margins, the GAAP gross margin improved from 70% to 75%, while the non-GAAP figure increased from 77% to 80%. Operational efficiency also saw notable improvements, as non-GAAP operating margin improved to -3% from -22%.
Looking forward, management now expects revenue for Q3 2025 to be $209.5 million, while full-year revenue is anticipated to land at $815 million. For reference, analysts were expecting Q3 and full-year revenues of $209.7 million and $813.7 million, respectively.
Is SentinelOne a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SentinelOne stock based on 13 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 50% rally in its share price over the past year, the average SentinelOne price target of $25.08 per share implies 1.17% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
