SentinelOne (S) just posted its FY 2026 fourth quarter numbers with revenue of US$271.2 million and a basic EPS loss of US$0.33, alongside trailing twelve month revenue of US$1.0 billion and a basic EPS loss of US$1.37. The company has seen revenue move from US$225.5 million in FY 2025 Q4 to US$271.2 million in FY 2026 Q4, while quarterly basic EPS losses ranged between US$0.18 and US$0.63 over the past year. This sets the stage for investors to weigh solid top line scale against ongoing pressure on margins.

See our full analysis for SentinelOne.

With the headline figures on the table, the next step is to see how these results line up with the stories investors usually tell about SentinelOne and where the numbers push back on those narratives.

US$1.0b trailing sales, but FY 2026 losses reach US$450.7 million

• Over the last twelve months, SentinelOne generated US$1.0b in revenue and reported a net loss of US$450.7 million, which works out to a basic EPS loss of US$1.37.
• Consensus narrative points to strong product expansion and AI-driven security as supports for long term margin improvement, yet the trailing loss of US$450.7 million and earlier quarterly losses between US$60.3 million and US$208.2 million show that the cost of growth is still very heavy.
  • Analysts looking for future profit margin expansion toward software industry levels are doing so against a starting point where net losses have grown at an annualized 13.7% over five years.
  • The last four quarters alone ranged from a loss of US$60.3 million in FY 2026 Q3 to US$208.2 million in FY 2026 Q1, which makes any margin improvement story heavily dependent on future execution rather than current profitability.

Revenue growth story meets bearish margin concerns

• Quarterly revenue moved from US$210.6 million in FY 2025 Q3 to US$271.2 million in FY 2026 Q4. Revenue is forecast in the data to grow about 14% per year, faster than the cited 10.4% US market growth rate.
• Bears argue that even with this revenue trajectory, persistent losses and high spending could limit future earnings power, and the recent net losses between US$70.8 million and US$208.2 million per quarter keep that concern alive.
  • The forecast in the data that the company remains unprofitable over the next three years, despite revenue growth assumptions, aligns with the cautious view that heavy R&D and sales costs may keep net income in the red.
  • Trailing twelve month net losses of US$450.7 million, alongside basic EPS losses each quarter from US$0.18 to US$0.63, underline why skeptics focus on the gap between top line growth and bottom line results.

SentinelOne’s revenue growth and AI-first positioning are exactly what bullish investors point to, but the latest loss profile shows why the debate around future margins is still very active. 🐂 SentinelOne Bull Case

P/S of 4.9x with shares above DCF fair value

• The stock trades on a P/S of 4.9x compared with 6.0x for peers and 3.4x for the broader US Software industry. The US$14.52 share price sits above the DCF fair value of about US$11.66 cited in the data.
• Bears highlight that the current valuation sits above the referenced DCF fair value despite continued losses, and the recent EPS loss of US$0.33 in FY 2026 Q4 plus trailing EPS of US$1.37 loss give them concrete numbers to point to.
  • The fact that the multiple is lower than the 6.0x peer average but higher than the 3.4x industry average fits the bearish concern that investors are still paying a premium to the wider software group while the company remains loss making.
  • Reportedly rising losses over five years at 13.7% per year mean the P/S comparison alone does not address the risk that the DCF fair value reference of US$11.66 is below today’s US$14.52 price.

Skeptics warn that paying above the DCF fair value while losses remain this large may leave less room for error if the growth story slows. 🐻 SentinelOne Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SentinelOne on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With all that in mind, does the balance of risks and rewards here match how you see SentinelOne, and are you acting fast enough on your own view? To pressure test your thinking against the data, take a look at the 1 key reward and 2 important warning signs that stand out right now.

See What Else Is Out There

SentinelOne is still carrying net losses of US$450.7 million on US$1.0b in sales, with basic EPS in the red every quarter.

If those ongoing losses and margin pressures make you uneasy, it could be worth comparing this profile with 68 resilient stocks with low risk scores that aim to prioritise steadier financial footing and lower risk right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.