SentinelOne, Inc. (S): A Bull Case Theory 

We came across a bullish thesis on SentinelOne, Inc. on Multibagger Radar’s Substack by Joshua Nielsen. In this article, we will summarize the bulls’ thesis on S. SentinelOne, Inc.’s share was trading at $14.64 as of January 13th. S’s forward P/E was 42.73 according to Yahoo Finance.

SentinelOne (NYSE: S) offers an AI-native security platform, Singularity, that spans endpoints, cloud, identity, data, and includes the virtual analyst Purple AI. The company’s growth thesis rests on three pillars: rapid AI innovation with Purple AI now generally available and embedded across workflows; cloud expansion through PingSafe CNAPP, providing full-stack coverage; and AI/agent security via the upcoming Prompt Security acquisition, enabling runtime governance for GenAI tools. Together, these initiatives form a cohesive “AI + data + cloud” control plane that is increasingly difficult for customers to replace, positioning SentinelOne as a key consolidator in cybersecurity.

Management has signaled disciplined, profitable growth, raising FY26 revenue guidance following a strong Q2, while emphasizing operating leverage. SentinelOne is reallocating resources from lower-priority legacy modules, such as the sunset Attivo deception line, toward AI, data, and cloud initiatives. Near-term catalysts include integrating Prompt Security, expanding CNAPP cross-sell, and driving net expansion as customers consolidate under a single agent and console. CEO Tomer Weingarten and CFO Barbara Larson have focused on scaling ARR to $1B, lifting gross margins into the high-70s, and targeting full-year operating profitability and positive free cash flow by FY26.

Financial performance underscores this momentum: Q2 FY26 revenue reached $242.2 million (+22% YoY) with ARR of $1B (+24% YoY), non-GAAP gross margin at 79%, and operating margin at 2%, with full-year guidance showing continued margin expansion and nearly $1B in ARR. Risks include intense competition from Microsoft, CrowdStrike, and Palo Alto, potential short-term churn from portfolio reshaping, and the evolving AI security landscape.

SentinelOne presents a compelling opportunity as the model transitions from growth-at-all-costs to profitable, scalable expansion. Successful execution of Prompt Security integration, CNAPP cross-sell, and platform consolidation could drive durable double-digit growth and operating leverage, offering potential 2–3× upside as the company captures share from incumbents and cements its AI-first security platform.

Previously we covered a bullish thesis on SentinelOne, Inc. (S) by Matthew | Sycamore Capital in March 2025, which highlighted the company’s AI-driven cybersecurity platform, growing ARR, and expanding enterprise adoption. The company’s stock price has depreciated approximately by 24.34% since our coverage due to near-term integration and legacy transitions. The thesis still stands as SentinelOne advances its AI-native security strategy. Joshua Nielsen shares a similar perspective but emphasizes the Prompt Security acquisition and “AI + data + cloud” control plane.

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Disclosure: None.