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We came across a bullish thesis on SentinelOne, Inc. (S) on Substack by Matthew | Sycamore Capital. In this article, we will summarize the bulls’ thesis on S. SentinelOne, Inc. (S)'s share was trading at $19.35 as of March 27th. S’s forward P/E was 102.04 according to Yahoo Finance.
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SentinelOne closed fiscal 2025 with strong financial momentum, showcasing competitive strength and a deepening shift toward AI-driven cybersecurity. Despite an initial 17% stock drop after earnings, the market quickly corrected, but the company remains significantly undervalued relative to its peers. SentinelOne continues to execute on its vision, outpacing legacy competitors and next-gen vendors alike. With revenue reaching $225.5 million in Q4, up 29% year-over-year, and ARR hitting $920.1 million, up 27%, the company is demonstrating solid top-line growth. Importantly, SentinelOne achieved its first-ever quarter of non-GAAP operating income, marking a significant milestone in its path to profitability. With a pristine balance sheet holding $1.1 billion in cash and no debt, the company is well-positioned for future expansion.
CEO Tomer Weingarten credited this success to strong execution, increasing adoption of SentinelOne’s AI-powered cybersecurity platform, and growing competitive win rates. The company continues to secure large enterprise deals, including a Fortune 100 airline that switched from a long-time incumbent and next-gen rival to SentinelOne, reinforcing its market leadership. The company’s ability to displace established players is evident in its 25% growth in customers with $100K+ ARR, reaching 1,411 enterprise clients. These wins are translating into a larger market share and an expanding footprint, with over 50% of fiscal 2025 bookings coming from non-endpoint solutions such as cloud security, AI-driven analytics, and identity protection.
The growing adoption of AI security solutions has further fueled SentinelOne’s expansion. The company is embedding generative AI across its platform, helping land significant deals in AI-centric security. A Fortune 500 retailer quintupled its SentinelOne deployment, signaling growing confidence in its AI-driven approach. Management believes that AI will become a fundamental requirement in cybersecurity, and SentinelOne is using this advantage to drive adoption and secure its position as an industry leader. With over 300 deals in AI-driven security capabilities in Q4 alone, the company is proving that its AI-powered approach is resonating with customers.