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Yahoo
3 days ago
- Business
- Yahoo
SentinelOne vs. Fortinet: Which Cybersecurity Stock is the Better Buy?
SentinelOne S and Fortinet FTNT are two well-known names in the cybersecurity space, each offering a wide range of tools to protect businesses from growing digital threats. Fortinet focuses on AI-powered security, firewalls and integrated platforms that combine networking and security in one system. SentinelOne, on the other hand, has been gaining ground through autonomous security operations, endpoint protection and cutting-edge AI tools like Purple AI and cyberattacks becoming more common and businesses spending more on protection, both companies are in a good spot. But which one offers more growth potential for investors in 2025? Let's look at their recent results and strategies to find out. SentinelOne continued to build momentum in AI-driven security operations in the first quarter of fiscal 2026, delivering 23% year-over-year revenue growth and achieving a record free cash flow margin of 20%. Its Singularity platform is now operating at scale with high enterprise adoption across endpoint, cloud, data and AI security. The company also surpassed $100 million in ARR for its data solutions, highlighting strong traction in cloud-native, AI-powered operations.A standout performer has been Purple AI, which achieved triple-digit growth in bookings with an attach rate over 25% across new subscriptions. SentinelOne expanded Purple AI with Athena, its end-to-end agentic AI system designed to understand context, take autonomous actions and reduce manual effort. These capabilities are paired with Hyperautomation, allowing no-code workflows for faster incident resolution. Customers using Purple AI have seen meaningful uplift in deal sizes and significant time savings in daily launch of SentinelOne's Unified Cloud Security Suite marked another step in platform growth. This solution combines workload protection, posture management, detection and response, and identity security into a single AI-powered cloud defense system. A Fortune 500 customer adopted this offering after replacing their incumbent solution due to performance the public sector, SentinelOne became the first cybersecurity vendor with FedRAMP High authorization for agentic AI. This milestone reflects its leadership in regulated markets and strengthens trust among government clients. With a strong platform shift underway and broad recognition across endpoint, cloud and AI security, SentinelOne is expanding its reach with both large enterprises and midmarket Zacks Consensus Estimate for S' fiscal 2026 earnings is pegged at 19 cents per share, which has been revised upward by a penny over the past 60 days, indicating a 280% increase year over year. The consensus estimate for revenues is pinned at $997.27 million, suggesting year-over-year growth of 21.4%. SentinelOne, Inc. price-consensus-chart | SentinelOne, Inc. Quote Fortinet has been making steady progress in AI-driven cybersecurity, with strong customer adoption across security operations. In the first quarter of 2025, its AI-powered SecOps business grew 29% year over year and now contributes 10% of its business. The company has been expanding its FortiAI product line, including FortiAI Assist for automation, FortiAI Protect for threat detection, and FortiAI Secure AI for safeguarding AI infrastructure. Fortinet's SecOps tools are deeply embedded within its Security Fabric and FortiOS platform, allowing customers to manage threats across cloud, network and endpoint environments through a unified system. The company highlighted large-scale deployments where customers consolidated multiple vendors and reduced complexity using Fortinet's integrated approach. The company also offers sovereign SASE and AI-enhanced monitoring options for highly sensitive use cases. Fortinet's use of proprietary FortiASIC chips and a single operating system gives it an edge in performance and total cost of ownership. Its customer base continues to grow, with the number of $1 million-plus deals increasing by 30% in the first Fortinet's SecOps momentum faces some pressure from broader macro uncertainty. The company noted that deal sizes and timelines may be affected by economic conditions, and its own sales teams have shown caution in forecasting near-term acceleration. While AI-driven security is a key growth area, Fortinet may face challenges balancing aggressive innovation with cautious enterprise spending, especially in the second half of the Zacks Consensus Estimate for FTNT's 2025 earnings is pegged at $2.47 per share, which has been revised upward by 2 cents over the past 60 days, indicating a 4.22% increase year over year. The consensus estimate for 2025 revenues is pinned at $6.75 billion, suggesting year-over-year growth of 13.36%. Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote Year to date, Fortinet shares have gained 10.8%, while SentinelOne shares have lost 17.5%. For SentinelOne, the year-to-date plunge indicates that there is more upside left in the stock, whereas for Fortinet, much of the demand and growth have already been priced in. Image Source: Zacks Investment Research In terms of valuation, FTNT's current forward 12-month P/S ratio of 11.19X is way ahead of S' 5.55X. This makes SentinelOne a relatively cheap stock. Image Source: Zacks Investment Research SentinelOne offers a stronger investment case in 2025, with solid double-digit revenue growth, improving free cash flow and rising adoption of its AI-driven security platform. Breakthrough innovations like Purple AI, Athena and the Unified Cloud Security Suite are fueling customer wins across endpoint, cloud and identity protection, while also expanding the company's presence in regulated though well-established, has shown slower SecOps momentum and a more cautious near-term outlook. SentinelOne's focused innovation and accelerating platform shift make it a more attractive choice for high-growth currently carries a Zacks Rank #2 (Buy), while Fortinet has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
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Palo Alto Networks Hits $5B in NGS ARR: What's Fueling the Surge?
Palo Alto Networks PANW surpassed a key milestone during the third quarter of fiscal 2025, wherein the annual recurring revenues (ARR) for its next-generation security (NGS) solutions hit the $5 billion mark. In the third quarter, NGS ARR reached $5.09 billion, representing year-over-year growth of 34%.Palo Alto Networks had 130 customers with more than $5 million in NGS ARR at the end of the third quarter, up 41% year over year. Also, the customer count with more than $10 million in NGS ARR grew 63% to 44. In the third quarter, PANW reported that AI-related ARR now stands at approximately $400 million, 2.5 times higher than the year-ago quarter. The robust growth in NGS ARR can be attributed to its flagship XSIAM platform, which is gaining traction across enterprise customers. During the third quarter, bookings for XSIAM, an artificial intelligence (AI)-powered NGS platform, approached the nearly $1 billion mark on a trailing 12-month basis. The platform now has approximately 270 customers with an average ARR per customer of more than $1 million. XSIAM ARR grew more than 200% year over year in the third quarter, all within 30 months after XSIAM was made generally available to customers. With management targeting $15 billion in ARR by fiscal 2030, AI may be more than a tailwind, it could be the engine of PANW's next phase of growth. The company forecasts that its NGS ARR will contribute approximately 60-70% of the fiscal 2023 total targeted ARR. Competitors like CrowdStrike CRWD and SentinelOne S are also gaining ground through platform expansion and AI innovation. CrowdStrike ended its first quarter of fiscal 2026 with $4.44 billion in ARR, reflecting 22% year-over-year growth. The robust increase was fueled by the growing adoption of CrowdStrike's Falcon Flex subscription a small competitor, SentinelOne's ARR is also growing rapidly with reaching $948 million at the end of the first quarter of fiscal 2026. This represents a year-over-year rise of 24% fueled by growing adoption of SentinelOne's AI-first Singularity platform and Purple AI. Shares of Palo Alto Networks have gained 6.7% year to date compared with the industry's growth of 19.4%. Image Source: Zacks Investment Research From a valuation standpoint, PANW trades at a forward price-to-sales ratio of 12.6, below the Zacks Security industry's 14.47. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Palo Alto Networks' fiscal 2025 and 2026 earnings implies a year-over-year increase of approximately 15% and 11%, respectively. The estimates for fiscal 2025 have been revised upward in the past 30 days, while the same for fiscal 2026 has remained unchanged. Image Source: Zacks Investment Research PANW stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
S Q1 Earnings Call: SentinelOne Addresses Sales Cycle Delays Amid Macro Uncertainty
Cyber security company SentinelOne (NYSE:S) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 22.9% year on year to $229 million. Its non-GAAP profit of $0.02 per share was in line with analysts' consensus estimates. Is now the time to buy S? Find out in our full research report (it's free). Revenue: $229 million (22.9% year-on-year growth) Adjusted EPS: $0.02 vs analyst estimates of $0.02 (in line) Adjusted Operating Income: -$3.93 million vs analyst estimates of -$3.76 million (-1.7% margin, relatively in line) Revenue Guidance for Q2 CY2025 is $242 million at the midpoint, below analyst estimates of $244.8 million Operating Margin: -38.2%, up from -43.3% in the same quarter last year Customers: 1,459 customers paying more than $100,000 annually Annual Recurring Revenue: $948.1 million at quarter end, up 24.4% year on year Market Capitalization: $6.65 billion SentinelOne's first quarter performance was shaped by increased adoption of its AI-driven security platform across large enterprises and mid-market customers, as well as ongoing customer expansion in cloud and data security. CEO Tomer Weingarten highlighted triple-digit bookings growth for Purple AI and a milestone of over $100 million in annual recurring revenue (ARR) for the company's data solutions. Management acknowledged that elongated sales cycles, especially for larger enterprise deals, impacted net new ARR growth. Weingarten attributed these delays chiefly to customers pausing spending decisions in response to wider economic uncertainty, emphasizing, 'We have not seen project cancellations or lost deals, and our win rates remain strong.' Looking ahead, SentinelOne's guidance incorporates a cautious view of the macroeconomic environment, with management noting a measured outlook due to unpredictable customer purchasing behavior. CFO Barbara Larson explained that the company's revenue forecast accounts for recent volatility and the possibility of further disruption, but also pointed to improved sales trends in May and a robust pipeline for the rest of the year. Management expects ongoing growth in platform adoption and continued momentum in AI and cloud security to support revenue expansion, while investments in automation and operational efficiency are projected to yield further margin improvements. Larson stated, 'We remain focused on instilling operational discipline and enhancing efficiency across the business.' Management cited platform innovation and expanded AI capabilities as key drivers of customer adoption, while also noting that delayed purchasing decisions in April contributed to lower net new ARR. AI-powered product traction: SentinelOne's Purple AI solution saw triple-digit year-over-year bookings growth, with an attach rate exceeding 25% of subscriptions sold in the quarter, indicating strong customer demand for AI-based threat detection and response. Cloud and data suite expansion: The company launched its unified cloud security suite, integrating workload, posture, detection, and AI security into a single platform, which management says makes deployments simpler and broadens market appeal. Data solutions surpassed $100 million in ARR, driven by customers seeking modern alternatives to legacy SIEM (Security Information and Event Management) products. Enterprise and mid-market momentum: Large enterprise customer wins included displacements of incumbent vendors and consolidation of security tools, while the mid-market segment maintained healthy expansion rates. Management highlighted higher ARR per customer and longer contract durations as evidence of increasing platform adoption. Partner ecosystem development: SentinelOne introduced the Partner One program to strengthen relationships with managed service providers, incident responders, value-added resellers, and technology partners. The company believes this initiative will expand its reach and make its platform more accessible. Public sector opportunities and challenges: Achieving FedRAMP High authorization for multiple products positions SentinelOne to compete for sensitive U.S. government contracts. However, management noted that ongoing federal budget uncertainty is elongating sales cycles in the public sector. SentinelOne's outlook is driven by expectations for continued adoption of its AI and cloud security solutions, balanced by ongoing caution regarding customer purchasing behavior and macroeconomic headwinds. AI and platform expansion: Management expects further growth from new and existing customers adopting AI-powered modules and broader platform offerings, with ongoing product enhancements aiming to increase deal sizes and customer retention. Operational efficiency focus: Investments in automation and cost discipline are projected to drive margin improvements, with management reiterating a target for full-year operating margin to improve by over 650 basis points. The company plans to reinvest in innovation while maintaining a careful approach to headcount and resource allocation. Macro and sector risks: SentinelOne's guidance reflects uncertainty surrounding customer budgets, especially for larger deals and federal contracts. Management is monitoring for potential delays or further disruptions in purchasing cycles, while highlighting that no major deal cancellations have occurred. In the coming quarters, the StockStory team will be watching (1) the pace of recovery in net new ARR and whether delayed deals convert as macro conditions stabilize, (2) adoption rates of the newly launched unified cloud security suite and further expansion of AI-driven solutions, and (3) progress in federal sector contracts following recent FedRAMP High authorizations. Execution on operational efficiency initiatives and the impact of the new Partner One program will also be key factors to monitor. SentinelOne currently trades at a forward price-to-sales ratio of 6.1×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
SentinelOne Gears Up to Post Q1 Earnings: Buy, Sell or Hold the Stock?
SentinelOne S is scheduled to report first-quarter fiscal 2026 results (ended April 30, 2025) on May 28, after the closing closed fiscal 2025 with a strong fourth quarter that exceeded expectations across revenues, margin, earnings per share (EPS) and customer growth. Revenue rose 29% year over year to $225.5 million, beating the Zacks Consensus Estimate by 1.6% and underscoring the company's competitive strength in an increasingly crowded cybersecurity net new Annual Recurring Revenue ('ARR') came in at $60 million, taking total ARR to $920 million, up 27% year over year. International revenue surged 36% and represented 37% of total quarterly revenues, reflecting robust global traction. Gross margin in the fiscal fourth quarter was strong, and operating margin beat guidance by over 400 basis points (bps) thanks to disciplined cost management. EPS came in at 4 cents against 2 cents loss a year key player in endpoint security—leveraging AI-driven tools to protect network-connected devices across a wide cybersecurity platform — surpassed earnings estimates in three of the trailing four quarters and missed on one, with an average surprise of 125%. You can see the historical figures in the chart below. Image Source: Zacks Investment Research The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) has remained unchanged at 2 cents per share over the past 60 days. In the year-ago period, the company reported break-even earnings. The consensus mark for revenues is pinned at $228 million, suggesting 22.4% year-over-year fiscal 2026, SentinelOne is expected to witness 22.7% revenue growth from the fiscal 2025 level. The company is expected to register a 280% year-over-year improvement in the bottom line for this year. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for SentinelOne this reporting cycle. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen. This is not the case here, as you will see ESP: SentinelOne has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Rank: The company currently carries a Zacks Rank # can see the complete list of today's Zacks #1 Rank stocks here. SentinelOne's expanding adoption of AI-driven solutions like Purple AI and AI SIEM, which fueled over 300 deals in the fiscal fourth quarter, is expected to have contributed to the company's quarterly results. Platform traction remains a bright spot, with more than 40% of large enterprise customers now adopting three or more Singularity platform modules. Strategic wins in cloud and data security, along with deepening MSSP partnerships, support the company's broader go-to-market shift beyond endpoint expects fiscal first-quarter revenues of approximately $228 million, up 22% year over year. Net new ARR is expected in the low $30 million range, with near-term pressure from the retirement of its legacy deception solution, which accounts for about $5 million in expected churn this quarter. While the move reflects the company's shift toward higher-margin, AI-driven solutions, it will temporarily weigh on ARR growth and net fiscal first-quarter operating margin is expected to land near negative 2%, reflecting seasonal expense patterns and continued platform investments. Gross margin is projected to remain strong at around 79%, supported by software scale and cloud leverage. The company's focus remains on maintaining margin improvement while driving platform expansion. SentinelOne shares have lost 2.8% over the past three months, underperforming both the Zacks Security industry's 8.3% rise and the broader Zacks Computer & Technology sector's 0.8% has underperformed industry peers, including Okta OKTA and CrowdStrike CRWD, but performed better than Fortinet FTNT over the same timeframe. Okta and CrowdStrike shares have appreciated 38.7% and 19.8%, respectively. However, Fortinet shares have lost 3.7% over the same three-month its current price, the S stock represents a 32.5% discount from its 52-week high of $29.29. It also indicates a 37.9% premium to its 52-week low of $14.33. Image Source: Zacks Investment Research From a valuation standpoint, the company is currently trading at a slight premium relative to its sector. In terms of the forward 12-month price-to-sales (P/S) ratio, SentinelOne is trading at 6.04X, higher than the sector's 6.12X. Its forward 12-month P/S ratio sits below its three-year average, as shown below. Image Source: Zacks Investment Research As SentinelOne prepares to report its fiscal first-quarter results, the company stands at a strategic inflection point, balancing near-term growth moderation with long-term platform and AI-driven upside. The expected revenue of $228 million, up 22% year over year, and a low $30 million range in net new ARR suggest a stable start to the year, albeit tempered by $5 million in planned churn tied to the retirement of its legacy deception solution. While this may weigh on reported metrics, the move reflects a deliberate shift toward higher-value, AI-native offerings and streamlined distinguishes SentinelOne is its sustained momentum in expanding platform adoption. With more than 40% of enterprise customers now using three or more solution categories and more than 300 AI-related deals signed in the prior quarter, the company is demonstrating strong cross-sell traction and customer engagement. Key growth vectors, such as AI SIEM, cloud security, and Purple AI, are seeing accelerated uptake, positioning SentinelOne as a differentiated leader in the evolving cybersecurity macroeconomic uncertainty, SentinelOne's solid gross margins, improving operating efficiency, and growing presence in enterprise and MSSP channels offer encouraging signs of durable growth. The company's path toward surpassing $1 billion in revenues and ARR this fiscal year remains intact, supported by innovation, expanding use cases, and operational sum, while near-term headwinds may modestly affect fiscal first-quarter growth, SentinelOne's long-term investment case remains compelling. Continued platform adoption, strong AI differentiation, and an improving margin profile position the company well for scalable, profitable expansion in fiscal 2026 and beyond. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-05-2025
- Business
- Yahoo
SentinelOne Rises 25% in a Month: Should You Still Buy the Stock?
SentinelOne's S shares have surged 25% in a month, outperforming the Zacks Security industry's return of 19.4% and the broader Zacks Computer and Technology sector's appreciation of 22.8%. The recent outperformance can be attributed to the company's strong AI-powered portfolio, rich partner base and expanding clientele despite stiff the cybersecurity space, SentinelOne is facing stiff competition from the likes of Okta OKTA, Broadcom AVGO and Microsoft MSFT. While Okta's main focus is on identity management, Broadcom's Symantec is a traditional legacy antivirus suite. Microsoft's Defender suite is broadly integrated with its own operating system, lacking openness with third-party SentinelOne's Singularity platform is a complete AI-native and provides security at multiple levels, including endpoint, cloud, identity and data through a single interface. The Purple AI provides investigation, real-time threat detection and automated response through its generative AI-powered security analysis, substantially reducing the response time of enterprises. SentinelOne's modular and multi-cloud compatible architecture gives it a first mover advantage compared to its peers as it offers a more modern and AI-driven solution to enterprises, leading the way into the SentinelOne stock has underperformed its competitors over the past month. Okta, Broadcom and Microsoft shares have appreciated 37.7%, 37.5% and 26.5%, respectively, over the same time. SentinelOne, Inc. price-consensus-chart | SentinelOne, Inc. Quote SentinelOne is expanding its reach in the market with an impressive partner base, which includes some of the top names in the industry, like Alphabet, Lenovo and Amazon Web Services (AWS), among others.S has integrated its services with platform solution providers like Palo Alto Networks, Fortinet, Okta and Microsoft to provide seamless security workflows to its end users. The Purple AI platform helps secure Gen AI applications on the Amazon bedrock, whereas the Singularity Cloud workload helps secure AWS containerized fourth-quarter 2025, 12+ new large Managed Security Service Providers adopted SentinelOne's AI SIEM, CNAPP and Purple AI modules, enhancing recurring revenues. By the end of the previous quarter, the company had more than 14000 direct customers and saw a 25% increase in customers with ARR exceeding $100,000. The total number of such customers stood at 1411 by the end of January April 2025, SentinelOne partnered with Nord Security to provide SMBs with an integrated endpoint and network security solution, increasing the revenue potential for both May 2025, SetinelOne received FedRAMP High Authorization for its Purple AI, Singularity Cloud Security CNAPP and Singularity Hyperautomation solutions. This authorisation provides the company with the opportunity to sell its services to federal agencies, public sector and critical infrastructure organisations, driving top-line growth. SentinelOne has provided positive guidance for the first quarter of fiscal 2026 and fiscal the first quarter of fiscal 2026, the company expects revenues to be around $228 million, indicating 22% growth year over year. For fiscal 2026, it expects revenues to be between $1.007 billion and $1.012 billion, implying 23% growth year over Zacks Consensus Estimate for first-quarter fiscal 2026 revenues is pegged at $228.03 million, indicating 22.36% year-over-year growth and the same for the entire fiscal 2026 is pegged at $1.01 billion. SentinelOne currently carries a Zacks Rank #2 (Buy).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report SentinelOne, Inc. (S) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
