Why SentinelOne Stock Crushed it in August
Key Points
It also published an earnings report showing impressive growth in key fundamentals.
This was bolstered by several bullish analyst post-earnings takes.
- 10 stocks we like better than SentinelOne ›
A clutch of encouraging business updates and a quarterly earnings report that was better than it seemed at first glance were the developments lifting SentinelOne (NYSE: S) stock last month. The cybersecurity company's shares did quite well as a result, rising by almost 16% across August.
Electronic guardian
With a well-earned reputation as a tech-forward business that has embraced artificial intelligence (AI), SentinelOne is widely regarded as a developer of solutions that protect users from highly advanced digital threats.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Among the announcements SentinelOne made at the beginning of August was its heralding of the Wayfinder Frontier AI Services expansion. The company wrote that it has secured a new remediation (i.e., fixing, patching, or resolving) partner for the system, fellow cybersecurity specialist LevelBlue. It also added several new capabilities to the platform.
According to the company, this bolsters Wayfinder's advanced proactive capabilities, which can halt threats from AI models used for nefarious purposes.
The day after that announcement was published, SentinelOne revealed that it had expanded its existing business partnership with cloud computing giant Amazon Web Services, or AWS. The company's AI runtime security will be integrated into the Amazon Bedrock AI platform to, in SentinelOne's words, provide "one place to see, enforce, and remediate AI risk."
Near the end of the month, the company took the wraps off its second-quarter fiscal 2027 earnings report. This reversed its early August momentum, albeit temporarily, as some of the company's results didn't meet fairly lofty expectations.
Revenue in the quarter rose by a sturdy 21% to $291 million. A far better dynamic was seen on the bottom line, with net income not under generally accepted accounting principles (non-GAAP, or adjusted) doubling and then some to almost $28.5 million ($0.08 per share).
Despite the double- and triple-digit gains, however, SentinelOne only edged past the analyst consensus estimates for both revenue and profitability. And, in what's an unpardonable transgression for many tech stock investors these days, it cut its adjusted earnings per share (EPS) guidance for the entirety of 2027, which missed estimates (although its revenue forecast, which was raised, beat them).
The bulls had their day
But investors changed their tune in the following days, when a clutch of analysts became more bullish on SentinelOne in the wake of the earnings report. A host of pundits at high-profile researchers such as Morgan Stanley either raised their price targets on the company's stock, or reiterated quite bullish analyses on its future.
This buttressed the argument -- correctly, in my view -- that SentinelOne's second quarter was cause for cheer and encouragement, rather than justification for a sell-off.
Cyber-threats are never going to fade away; in fact, they're only going to get more intense with the power of AI behind more of them. It's a dangerous world we live in, both online and off, and the work of advanced cybersecurity operators will be increasingly crucial in protecting us. SentinelOne clearly knows this business inside and out, and I think it has many more high-growth quarters ahead.
Should you buy stock in SentinelOne right now?
Before you buy stock in SentinelOne, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SentinelOne wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 8, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
