Q3 Rundown: SentinelOne (NYSE:S) Vs Other Cybersecurity Stocks

January 20, 2025 at 04:02 AM EST

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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at SentinelOne (NYSE: S) and the best and worst performers in the cybersecurity industry.

Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.

The 9 cybersecurity stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.5% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.

Weakest Q3: SentinelOne (NYSE: S)

With roots in the Israeli cyber intelligence community, SentinelOne (NYSE: S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks.

SentinelOne reported revenues of $210.6 million, up 28.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

“Our Q3 results demonstrate strong execution and business momentum. We exceeded our topline growth expectations and re-accelerated new business growth,” said Tomer Weingarten, CEO of SentinelOne.

SentinelOne delivered the weakest performance against analyst estimates of the whole group. The company added 77 enterprise customers paying more than $100,000 annually to reach a total of 1,310. Unsurprisingly, the stock is down 21.5% since reporting and currently trades at $22.52.

Is now the time to buy SentinelOne? Access our full analysis of the earnings results here, it’s free.

Best Q3: Okta (NASDAQ: OKTA)

Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ: OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.

Okta reported revenues of $665 million, up 13.9% year on year, outperforming analysts’ expectations by 2.4%. The business had a very strong quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 6.8% since reporting. It currently trades at $87.35.

Is now the time to buy Okta? Access our full analysis of the earnings results here, it’s free.

Tenable (NASDAQ: TENB)

Founded in 2002 by three cybersecurity veterans, Tenable (NASDAQ: TENB) provides software as a service that helps companies understand where they are exposed to cyber security risk and how to reduce it.

Tenable reported revenues of $227.1 million, up 12.7% year on year, exceeding analysts’ expectations by 1.7%. It was a a satisfactory quarter as it also posted full-year EPS guidance exceeding analysts’ expectations.

The stock is flat since the results and currently trades at $41.

Read our full analysis of Tenable’s results here.

CrowdStrike (NASDAQ: CRWD)

Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ: CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.

CrowdStrike reported revenues of $1.01 billion, up 28.5% year on year. This result beat analysts’ expectations by 2.8%. It was a strong quarter as it also produced a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

CrowdStrike pulled off the fastest revenue growth among its peers. The stock is down 1.6% since reporting and currently trades at $358.49.

Read our full, actionable report on CrowdStrike here, it’s free.

Palo Alto Networks (NASDAQ: PANW)

Founded in 2005 by cybersecurity engineer Nir Zuk, Palo Alto Networks (NASDAQ: PANW) makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches, and malware threats.

Palo Alto Networks reported revenues of $2.14 billion, up 13.9% year on year. This number surpassed analysts’ expectations by 0.8%. Overall, it was a strong quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Palo Alto Networks had the weakest full-year guidance update among its peers. The stock is down 9.5% since reporting and currently trades at $177.72.

Read our full, actionable report on Palo Alto Networks here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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