Artificial intelligence and cybersecurity continue to merge, and one company getting a lot of attention is SentinelOne. With a market value of around $5.7 billion, it remains much smaller than some of the giants in the industry, but its technology is ambitious and heavily powered by AI. The goal is straightforward: automate security tasks so companies can detect threats faster, respond quicker, and reduce the impact of cyberattacks.

Even though the stock is still 80% below its 2021 all-time high, Wall Street analysts believe there could be room for a recovery, especially with the stock trading under $20.

Below is a simple breakdown of what makes analysts optimistic as 2026 approaches.

AI-Powered Protection for the Modern Enterprise

SentinelOne’s Singularity platform is designed to keep an entire business secure from cloud systems and employee identities to laptops, servers, and mobile devices. It’s an all-in-one system built around artificial intelligence.

Key features include:

Storyline

This tool rebuilds the timeline of a cyberattack so security teams understand what happened and what actions to take. It reduces the amount of time analysts spend manually investigating incidents.

One-Click Rollback

If a breach happens, this patented feature allows companies to restore devices or networks to their original state with just one action.

Purple AI Athena

Launched earlier this year, Purple AI Athena is one of SentinelOne’s biggest innovations. Instead of simply assisting human analysts, it works like a full security team member identifying, analyzing, and fixing threats on its own, and at machine speed. This sets it apart from many other AI tools in the cybersecurity space.

Revenue Climbing Toward $1 Billion

SentinelOne reported $258.9 million in revenue for the fiscal 2026 third quarter (ending Oct. 31). This slightly beat expectations of $256 million and represented 23% year-over-year growth, up from 22% in the previous quarter.

At this pace, the company is on track to hit $1 billion in annual revenue for fiscal 2026 a major milestone.

Profitability Still a Challenge

• GAAP net loss (Q3): $60.3 million (improved from $78.3 million last year)
• Non-GAAP net income (Q3): $24.8 million

While the adjusted number is positive, it excludes several costs, so the company still has a road ahead before true profitability. The good news: SentinelOne has about $650 million in cash and short-term investments, giving management time to improve performance.

Why Wall Street Remains Bullish

According to The Wall Street Journal, 39 analysts cover SentinelOne:

• 23 rate it a Buy
• 2 rate it Overweight (bullish)
• 14 rate it Hold
• 0 recommend selling

The average price target among analysts is $21.81, suggesting the stock could rise about 45% over the next year. Some analysts are even more optimistic, with a high target of $30, which would nearly double the share price.

Valuation Looks Attractive

SentinelOne currently trades at a price-to-sales (P/S) ratio of 5.3, far lower than its unsustainable 2021 peak above 120. It’s also cheaper than peers such as:

• CrowdStrike
• Palo Alto Networks
• Zscaler

Even though SentinelOne is smaller and generates less revenue, its 23% revenue growth last quarter was actually faster than:

• CrowdStrike (22%)
• Palo Alto Networks (16%)

That doesn’t mean SentinelOne should trade at the same valuations but it does show that growth momentum is strong.

A Huge Market Opportunity Still Ahead

SentinelOne estimates its total addressable market at over $100 billion. With its current size, it has only captured a small portion of that space, leaving plenty of room for expansion.

If the company continues improving its platform and strengthens its financial performance, the optimism from Wall Street could make sensees pecially for investors looking toward 2026 with a long-term mindset.

Disclaimer

This article is for informational and educational purposes only and does not constitute financial advice. Investing in the stock market carries risk. Always do your own research or consult a licensed financial professional before making investment decisions.