KeyBanc reiterates Sector Weight rating on SentinelOne stock after Q2 beat

Investing.com - KeyBanc maintained its Sector Weight rating on SentinelOne Inc (NYSE:S), a cybersecurity company with a $5.8 billion market cap and strong balance sheet fundamentals, following its strong fiscal second-quarter performance. According to InvestingPro analysis, the company currently appears slightly undervalued based on its Fair Value assessment.

SentinelOne exceeded expectations with annual recurring revenue (ARR) beating projections by $16 million, while revenue met targets and operating margins surpassed forecasts by 2 percentage points. The company maintains impressive revenue growth of 25.4% and a healthy gross margin of 74.9%. InvestingPro subscribers can access 6 additional key tips and comprehensive analysis in the Pro Research Report, offering deeper insights into SentinelOne’s financial health and growth prospects.

Despite the strong quarterly results, the company raised its fiscal year 2026 revenue guidance by only $1 million, which KeyBanc described as "appropriately prudent for de-risking" the second half of the fiscal year.

KeyBanc noted that SentinelOne’s performance was "broad-based across new logos, expansions, and geos," with the ARR outperformance primarily resulting from improved execution. The firm also highlighted that Purple AI continued its triple-digit growth, while both endpoint and Data bookings accelerated.

During the quarter, SentinelOne introduced Flex, a new contracting vehicle similar to those offered by competitors, which KeyBanc views positively for "keeping pace with peers and enabling broader adoption of the platform."

In other recent news, SentinelOne reported its fiscal second-quarter 2026 earnings, exceeding analysts’ projections. The company achieved an earnings per share (EPS) of $0.04, surpassing the forecast of $0.03, marking a 33.33% positive surprise. Revenue for the quarter stood at $242.2 million, slightly above the consensus expectation of $242.1 million and reflecting a 22% increase from the previous year. Following these results, Citizens JMP analyst Trevor Walsh reiterated a Market Outperform rating for SentinelOne with a price target of $29.00. These developments highlight SentinelOne’s strong financial performance in the recent quarter.

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