Why SentinelOne (S) Stock Is Trading Up Today

August 29, 2025 at 13:45 PM EDT

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What Happened?

Shares of cybersecurity AI platform provider SentinelOne (NYSE: S) jumped 4.5% in the morning session after the company reported second-quarter results that beat analyst expectations for profitability and recurring revenue.

The company's revenue of $242.2 million was up 21.7% from the prior year, meeting Wall Street estimates. However, its Annual Recurring Revenue (ARR) grew 24.1% to $1 billion, ahead of forecasts. SentinelOne also posted an adjusted profit of $0.04 per share, which was $0.01 above consensus, and its adjusted operating margin of 2.2% significantly outperformed expectations. Investors appeared to focus on these stronger profitability metrics, looking past the company's full-year revenue guidance, which was maintained at a level in line with analyst projections.

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What Is The Market Telling Us

SentinelOne’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 3.4% as investors grew optimistic ahead of its second-quarter fiscal 2026 earnings report.

The cybersecurity firm has guided for revenues of approximately $242 million, which would mark a significant 22% increase compared to the same period last year. This positive outlook is supported by expectations of strong performance from its Singularity platform.

Adding to the bullish sentiment, Cantor Fitzgerald recently reiterated its "Overweight" rating and a $24 price target on the stock. The firm highlighted SentinelOne's strong enterprise adoption and platform expansion as key drivers for its positive stance. The pre-earnings rally suggests that the market anticipates a strong report from the company.

SentinelOne is down 17.3% since the beginning of the year, and at $18.66 per share, it is trading 35% below its 52-week high of $28.68 from December 2024. Investors who bought $1,000 worth of SentinelOne’s shares at the IPO in June 2021 would now be looking at an investment worth $438.94.

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