SentinelOne Inc. (NYSE:S) posted second-quarter fiscal 2026 outcomes that modestly outpaced expectations, prompting a number of Wall Avenue analysts to reiterate bullish views and elevate value forecasts.
Income got here in at $242.2 million, up 22% year-over-year and in step with consensus estimates, whereas non-GAAP EPS of 4 cents beat forecasts of three cents. Annual recurring income (ARR) grew 24% to $1 billion for the second straight quarter, and huge prospects spending greater than $100,000 yearly elevated 23% to 1,513.
SentinelOne ended the quarter with $1.2 billion in money and investments. Administration guided third-quarter income of $256 million and raised full-year income expectations to $998 million-$1.002 billion, up barely from prior forecasts and intently aligned with analyst projections.
WestPark Capital analyst Casey Ryan reaffirmed a Purchase score and $25 value forecast, emphasizing SentinelOne’s capability to mix regular top-line development with bettering profitability. He highlighted gross margins rising to 73.3%, protecting the corporate on monitor towards its 75-80% long-term forecast.
Ryan praised the AI-powered Singularity platform as a differentiator in opposition to rising cyber threats and staffing shortages and added that SentinelOne’s constant execution and stability sheet energy make it a possible takeover candidate for both strategic or personal fairness patrons.
Needham & Firm analyst Mike Cikos reiterated a Purchase and raised his forecast to $23, describing SentinelOne’s quarter as a turning level in momentum. He highlighted report net-new ARR development of 90% sequentially, nicely above expectations, fueled by energy throughout new and present prospects.
Cikos famous Purple AI’s connect charges above 30% and triple-digit bookings development as proof of accelerating adoption, whereas the Information section continues to scale after surpassing $100 million in ARR final quarter.
He additionally pointed to the early success of SentinelOne Flex, the corporate’s new licensing mannequin, which has already landed an eight-figure deal. Whereas the $180 million acquisition of Immediate Safety creates a short-term margin headwind (~80 bps), Cikos sees it strategically enhancing the corporate’s generative AI safety portfolio.
Different analysts additionally raised their forecasts following the print. UBS’ Roger Boyd maintained a Impartial score and lifted his value forecast from $19 to $21. Wells Fargo’s Andrew Nowinski reiterated an Equal-Weight score whereas shifting his forecast from $18 to $19. Barclays’ Saket Kalia stored an Equal-Weight stance and raised his forecast from $19 to $21. Baird’s Shrenik Kothari remained extra constructive with an Outperform score and a better forecast of $23, up from $21.
