After the July 19th CrowdStrike (CRWD) outage, the wide perception around Wall Street was that one’s misfortunes could be another’s opportunity. It means that CrowdStrike’s mishaps present a golden opportunity for its competitors, such as Palo Alto Networks (PANW), but even more so for the growth cybersecurity company SentinelOne (S) and its AI-driven security system. SentinelOne utilizes its Singularity Platform, an artificial intelligence security system that is easy to comprehend and use. It has one-button automatic remediation and rollback capabilities, designed to prevent any calamities demonstrated by the Crowdstrike outage, when systems crashed for hours.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Yet, despite the company’s impressive advancements, SentinelOne hasn’t fully capitalized on the opportunities presented. After its somewhat disappointing third-quarter earnings results were reported on Dec. 4th, the stock declined 13% the very same day.
Nevertheless, if we look at Tipranks’ Smart Score tool, we find a perfect 10 for SentinelOne’s stock going forward based on analysts’ consensus, news sentiment, crowd wisdom, hedge fund trends, and more.
If you wish to read more on SentinelOne, you can read what our writer at Tipranks, Casey Dylan, wrote about the company right here.
Now, let’s examine SentinelOne’s market position, recent financial performance, and its challenges in maximizing its potential.
- Market Position and Competitive Landscape: SentinelOne is carving out its niche in the very crowded cybersecurity market. It still trails behind industry leaders like CrowdStrike or Palo Alto Networks, who possess 30% and 25% market share, respectively. SentinelOne, on the other hand, holds around 15% of the sector’s shares. Despite the growing competition, SentinelOne’s AI-driven tech has earned some praise, particularly regarding endpoint protection and cloud security.
- Disappointing Earnings Report: The third quarter of 2025 was a mixed bag for SentinelOne. The company reported a 28% year-over-year increase in revenue, reaching $210.65 million. However, the earnings per share (EPS) of -$0.25 missed expectations by $0.05, leading to a significant drop in stock price. This earnings miss highlights the operational challenges SentinelOne faces, including cost management and achieving profitability, since the company has yet to become profitable despite sound cash reserves and low debt levels.
- Financials and Growth Potential: Despite the disappointing earnings report, SentinelOne’s financials paint a picture of strong growth potential. The company is financially solid, with a market cap of $8.28 billion and an enterprise value of $8.46 billion. As mentioned in the previous segment, the company boasts total cash reserves of $660.26 million and minimal debt of $20.09 million. The Annualized Recurring Revenue (ARR) surged by an impressive 29%, reaching $859.7 million. This is largely attributed to a 24% increase in customers generating $100,000 or more in ARR. CEO Tomer Weingarten stated the company’s plans to tap into markets worth over $100 billion, with its AI-powered security products aimed to avoid update issues like we’ve seen from CrowdStrike. Additionally, it’s worth noting SentinelOne’s partnerships with Lenovo (LNVGY) and Amazon’s AWS (AMZN), along with its expansion in the federal sector.
Is S Stock a Buy or Sell?
On Wall Street, S stock is a Moderate Buy, based on 14 buys and 8 holds. The average price target is $29.90, reflecting a 15.98% upside.
Conclusion
While SentinelOne has made significant strides in the cybersecurity sector, it still faces challenges in fully leveraging the opportunities from CrowdStrike’s outage. The company’s AI-driven technology, strong financial position, and strategic partnerships position it well for future growth. However, third-quarter below-par earnings have caused the stock to decline 13%, reflecting how difficult it really is for a growth company to make the final step to becoming a true leader in the industry.
