SentinelOne: Barclays Maintains Equal-Weight, Raises PT to $21 from $19.

SentinelOne: Barclays Maintains Equal-Weight, Raises PT to $21 from $19.

SentinelOne, a leading AI-powered cybersecurity provider, has seen its stock price fluctuate in recent months, with analysts weighing in on its prospects ahead of its earnings report. On July 2, 2025, Barclays maintained its equal-weight rating on SentinelOne shares but raised its price target (PT) to $21 from $19, reflecting the company's strong Q2 earnings and robust growth prospects.

SentinelOne reported impressive second-quarter results for fiscal 2026, ending July 31, 2025. The company's revenue of $242.18 million was up 22% year-over-year, and its adjusted earnings of $0.04 per share exceeded analyst estimates. Notably, the company crossed the $1 billion milestone in Annualized Recurring Revenue (ARR), marking a 24% increase year-over-year [1].

The company's success can be largely attributed to its AI-powered Singularity Platform, which offers comprehensive protection across various digital environments. SentinelOne reported strong adoption of its AI and data solutions, with non-endpoint products representing about 50% of total quarterly bookings [1].

Barclays' analysts highlighted the company's strategic initiatives and acquisitions, including the launch of SentinelOne Flex and the acquisition of Prompt Security, which aims to expand the company's capabilities in GenAI security and data loss prevention. These moves position SentinelOne as an early mover in addressing emerging risks associated with AI adoption in enterprises [1].

The company also reported significant growth in its customer base, particularly among high-value clients. There was a 23% year-over-year increase in customers with ARR above $100,000, reaching 1,513, with strong contributions from both new customer additions and expansions with existing accounts [1].

SentinelOne has raised its full-year revenue guidance for fiscal 2026, projecting Q3 revenue to be approximately $256 million and full-year revenue between $998 million to $1.002 billion. The company expects non-GAAP gross margin to be 78.5% to 79% [1].

Despite the strong financial performance, SentinelOne continues to face challenges, including persistent GAAP losses and the need to maintain growth rates while improving profitability. The company's focus on innovation and AI-driven solutions positions it well to capitalize on emerging opportunities in the cybersecurity market.

Analysts are closely watching SentinelOne's upcoming earnings report for further insights into its financial health and growth prospects. While the stock price has been volatile, the company's strong Q2 performance and strategic initiatives suggest a promising outlook for the future.

References:
[1] https://theoutpost.ai/news-story/sentinel-one-surpasses-1-billion-arr-boosts-outlook-on-ai-driven-growth-19679/
[2] https://cryptorank.io/news/feed/57a3e-sentinelone-stock-price-forecast-ahead-of-earnings-buy-or-sell