SentinelOne, Inc. (S)
SecuritySaaS Metrics & Investor Data — Q2 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
SentinelOne is demonstrating a clear acceleration in top-line momentum, with trailing revenue crossing the $1.01B mark in Q2 2026, up from $940M in Q4 2025. The YoY growth rate has notably re-accelerated from 14.5% to 22.6% over the last two quarters, signaling a successful re-engagement of the growth engine after a period of deceleration. Gross margins remain solidly above 73%, showing stability despite the rapid scaling of the business. More critically, the company has achieved a significant inflection in cash generation: Free Cash Flow (FCF) margin has expanded from a razor-thin 1.3% in Q4 2025 to a healthy 10.2% in Q2 2026. This suggests the business is transitioning from a high-growth, cash-burning phase to a more sustainable, capital-efficient growth model.
Operational & Go-to-Market (GTM) Efficiency
The improvement in operational discipline is best captured by the Rule of 40 score, which has more than doubled from 15.9 in Q4 2025 to 32.8 in Q2 2026. While still below the coveted 40% threshold, the trajectory is highly favorable and indicates that GTM investments are yielding improved returns. The combination of accelerating growth and rapidly expanding FCF margins demonstrates that SentinelOne is successfully balancing reinvestment with profitability. The company appears to be moving past its heavy investment phase, now converting top-line scale into operating leverage. The lack of disclosed Net Revenue Retention (NRR) data remains a blind spot for analysts, but the sustained growth acceleration implies solid retention and expansion within the existing customer base.
Market Valuation & Sentiment
Despite the operational turnaround, the market has not fully re-rated the stock. The Enterprise Value to Revenue (EV/Revenue) multiple has compressed from 6.5x to 5.3x over the period, even as growth and margins improved. This valuation compression suggests the market is pricing in execution risk or a slowdown in the broader cybersecurity spend. Insider activity reinforces a cautious tone, with net selling of -$453.3K and zero insider purchases in the last ten filings, signaling a lack of conviction from management at current levels. Wall Street sentiment remains bullish with a consensus Buy rating (22 Buys, 12 Holds) and an average price target of $19.19, implying upside. However, the disconnect between strong operational metrics, a discounted multiple, and lackluster insider buying suggests the market is waiting for proof of sustained profitable growth before re-rating the stock higher.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
SentinelOne, Inc. (S) is a Security SaaS company with a market cap of $5.5B as of Q2 2026. The company trades at 5.3x EV/Revenue and has delivered +22.6% revenue growth year-over-year. With a gross margin of 74% and FCF margin of 10.2%, SentinelOne, Inc. scores 33 on the Rule of 40 — placing it in the upper half of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Security sector medians
EV/Revenue is 5.3x (sector median: 5.3x) — trading in-line with peers.
Rule of 40 is 32.8% (sector median: 32.8%) — in-line with peers.
Revenue Growth is 22.6% (sector median: 12.0%) — outperforming peers by 10.6%.
Gross Margin is 73.9% (sector median: 73.9%) — in-line with peers.
FCF Margin is 10.2% (sector median: 21.6%) — underperforming peers by 11.4%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
biotechR&D Intensity Trend
R&D expense as % of revenue over time
S's R&D spend represents a significant product investment relative to revenue, typical of early/expansion-stage SaaS.
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Growing efficiently. Operating income is expanding faster than revenue growth, indicating positive operating leverage.
Insider Trading Activity
90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 8 sell transactions (totaling $2.0M) with zero buys. Last activity on May 6, 2026.
Analyst Ratings
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