SentinelOne, Inc.

Time to Buy?

SentinelOne S shares have gained 7.1% since the company reported its second-quarter fiscal 2026 results on Aug. 28. Growth can be attributed to strong contributions in new customer acquisitions, platform adoption by existing customers, and rapid growth in AI-powered security solutions.
In the second quarter of fiscal 2026, S reported earnings of 4 cents per share, which surpassed the Zacks Consensus Estimate by 33.33%. The company reported earnings of 1 cent per share in the year-ago quarter.
Revenues were $242.2 million, up 21.7% year over year and beat the consensus mark by 0.07%. The upside can be attributed to the continued adoption of its AI-powered security solutions.
As of July 31, 2025, annualized recurring revenues (ARR) grew 24% year over year to $1 billion. ARR determines the annualized revenue run rate of the company’s subscription, consumption, and usage-based agreements at the end of a reporting period. Customers with over $100,000 or more in ARR grew 23% year over year to 1,513 as of July 31, 2025.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne’s shares have plunged 15.1% year to date against the Zacks Computer & Technology sector’s rise of 10.1%. The raised guidance will help S stock to recover.
SentinelOne’s Operating Highlights
Adjusted gross margin in the reported quarter was 79%, which contracted 50 bps year over year.
Total operating expenses of $186.1 million increased 13.1% year over year due to elevated research and development (up 29% year over year), sales and marketing (up 5.8% year over year), and general and administrative expenses (up 15.3% year over year).
Non-GAAP operating margin was 2.2% in the fiscal second quarter, an increase from the loss of 3.2% in the year-ago quarter.
SentinelOne’s Balance Sheet Remains Strong
As of July 31, 2025, SentinelOne had cash, cash equivalents, and investments of $1.2 billion.
Free cash outflow jumped 31.5% year over year to $7.1 million. Free cash outflow margin remained unchanged year over year at 3%.
S Unveils Q3 View and Raises Fiscal 2026 Guidance
For third-quarter fiscal 2025, SentinelOne expects revenues of $256 million, indicating growth of nearly 22% year over year.
Non-GAAP gross margin is expected to be 78.5%.
For fiscal 2026, revenues are forecasted to be between $998 million and $1 billion, down from the prior projected range of $996 million to $1 billion, representing 22% year-over-year growth.
Adjusted gross margin is expected to be between 78.5% and 79% for fiscal 2026.
For fiscal 2026, the company expects the adjusted operating margin to be 3%.
SentinelOne’s Zacks Rank & Stocks to Consider
Currently, SentinelOne has a Zacks Rank #4 (Sell).
Alkami Technology ALKT, Arista Networks ANET, and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy), APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkami Technology shares have lost 29.9% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 58 cents per share, up by 7.4% over the past 30 days, implying growth of 100% from the year-ago quarter’s reported figure.
Arista Networks shares have gained 23.2% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at $2.81 per share, up by 9.7% in the past 30 days, indicating year-over-year growth of 23.79%.
Amphenol shares have gained 61.2% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has increased 1.34% to $3.02 per share in the past 30 days, indicating year-over-year growth of 59.79%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S Shares Jump 7% on Q2 Earnings Beat and Robust Fiscal 2026 Guidance

The S&P 500 Index ($SPX) (SPY) on Friday closed down by -0.64%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down by -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.22%. September E-mini S&P futures (ESU25) fell -0.68%, and September E-mini Nasdaq futures (NQU25) fell -1.31%.
Stock indexes retreated on Friday, weighed down by weakness in technology stocks. Marvell Technology tumbled more than -18% to lead semiconductor stocks lower after reporting that Q2 data center revenue missed estimates. Also, Dell Technologies fell more than -8% to lead computer hardware stocks lower after reporting tighter profit margins on AI servers.
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Stocks added to their losses after the August MNI Chicago PMI fell more than expected and after the University of Michigan's US August consumer sentiment index was unexpectedly revised lower. Also, inflation pressures remain sticky after the US July core PCE price index, the Fed's preferred inflation gauge, rose by the most in five months.
On the positive side for stocks, US consumer demand remains resilient after July personal spending rose by the most in four months. Also, the University of Michigan's inflation expectations were unexpectedly revised lower. In addition, dovish comments from Fed Governor Waller and San Francisco Fed President Daly were bullish for stocks as they signaled their support for Fed rate cuts.
US July personal spending rose +0.5% m/m, the most in four months, and right on expectations. July personal income rose +0.4% m/m, right on expectations.
The US July core PCE price index, the Fed's preferred inflation gauge, rose to a 5-month high of +2.9% y/y from +2.8% y/y in June, right on expectations but well above the Fed's 2% inflation target.
The US Aug MNI Chicago PMI fell -5.6 to 41.5, weaker than expectations of 46.0.
The University of Michigan's Aug US consumer sentiment index was revised lower by -0.4 to 58.2, weaker than expectations of no change at 58.6.
The University of Michigan Aug 1-year inflation expectations were unexpectedly revised slightly lower by -0.1 to 4.8%, weaker than expectations of an upward revision to 5.0%. The Aug 5-10 year inflation expectations were revised lower by -0.4 to 3.5% from the previously reported 3.9%.
Late Thursday, Fed Governor Christopher Waller stated that he supports a 25-bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months. He said, "With underlying inflation close to 2%, market-based measures of longer-term inflation expectations firmly anchored, and the chances of an undesirable weakening in the labor market increased, proper risk management means the FOMC should be cutting the policy rate now."
San Francisco Fed President Mary Daly signaled she's open to lower interest rates soon, saying, "It will soon be time to recalibrate policy to better match our economy." She added that tariff-related price increases "will be a one-off" and it "will take time before we know that for certain, but we can't wait for perfect certainty without risking harm to the labor market."
Regarding tariffs, President Trump on Monday threatened to impose new tariffs and export restrictions on advanced technology and semiconductors in retaliation against other nations' digital services taxes that hit American companies. Last week, Mr. Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect last Monday and did not exclude goods already in transit.
In other recent tariff news, Mr. Trump on August 13 extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 88% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 55% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With Q2 earnings season winding down, over 95% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets on Friday settled mixed. The Euro Stoxx 50 fell to a 2-week low and closed down -0.83%. China's Shanghai Composite closed up +0.37%. Japan's Nikkei Stock 225 closed down -0.26.
Interest Rates
September 10-year T-notes (ZNU5) Friday closed down -2.5 ticks, and the 10-year T-note yield rose +2.4 bp to 4.227%.
Sep T-notes posted modest losses on Friday after the US July core PCE price index, the Fed's preferred inflation gauge, rose to a 5-month high of +2.9% y/y. T-notes also have carryover pressure from weakness in 10-year German bunds after the German Aug CPI rose more than expected.
Losses in T-notes were limited after Fed Governor Christopher Waller said he supports a 25 bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months. Also, the University of Michigan's Aug inflation expectations were revised lower, a dovish factor for Fed policy.
European government bond yields on Friday moved higher. The 10-year German bund yield rose +2.9 bp to 2.724%. 10-year UK gilt yield rose +2.2 bp to 4.722%.
The ECB's July 1-year CPI expectations remained unchanged from June at +2.6%, which is stronger than the expected +2.5%. The ECB Jul 3-year CPI expectations unexpectedly climbed to +2.5%, stronger than expectations of no change at +2.4%.
German Aug unemployment unexpectedly fell by -9,000, showing a stronger labor market than expectations of +10,000.
German Jul retail sales fell -1.5% m/m, weaker than expectations of no change and the biggest decline in almost two years.
German Aug CPI (EU harmonized) rose +2.1% y/y, stronger than expectations of +2.0% y/y.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Chipmakers sold off on Friday, led by an -18% plunge in Marvell Technology (MRVL) to lead losers in the Nasdaq 100 after it reported Q2 data center revenue of $1.49 billion, below the consensus of $1.52 billion. Also, Lam Research (LRCX) closed down more than -4%, and Broadcom (AVGO), Nvidia (NVDA), and Advanced Micro Devices (AMD) closed down more than -3%. In addition, ARM Holdings Plc (ARM), ASML Holding NV (ASML), Applied Materials (AMAT), KLA Corp (KLAC), Intel (INTC), ON Semiconductor Corp (ON), and Micron Technology (MU) all closed down by more than 2%.
Dell Technologies (DELL) closed down more than -8% to lead losers in the S&P 500, and makers of computer hardware are lower after reporting Q2 operating income of $2.28 billion, below the consensus of $2.30 billion. Also, Super Micro Computer (SMCI) closed down more than -5% and Hewlett Packard Enterprise (HPE) closed down more than -2%.
Ulta Beauty (ULTA) closed down more than -7% despite reporting better-than-expected Q2 net sales after it warned of a potential pullback by consumers.
Caterpillar (CAT) closed down more than -3% to lead losers in the Dow Jones Industrials after warning that it faces a larger-than-anticipated tariff headwind of as much as $1.8 billion this year.
Dollar General (DG) closed down more than -2% despite reporting better-than-expected Q2 EPS after it said it expects "more pressure" in selling, general, and administrative (SG&A) expenses in Q3 and warned of tougher gross margin comparison in Q4.
Cryptocurrency-exposed stocks fell Friday after the price of Bitcoin (^BTCUSD) dropped more than -3% to a 7-week low. As a result, Galaxy Digital (GLXY) closed down more than -4%, and Coinbase Global (COIN) and Strategy (MSTR) closed down more than -1%.
Autodesk (ADSK) closed up more than +9% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue of $1.76 billion, better than the consensus of $1.72 billion, and forecasting Q3 revenue of $180 billion-$1.81 billion, stronger than the consensus of $1.77 billion.
Ambarella (AMBA) closed up more than +16% after reporting Q2 adjusted EPS of 15 cents, well above the consensus of 6 cents, and raising its 2026 revenue growth estimate to 31%-35% from a May forecast of +19%-25%.
Affirm Holdings (AFRM) closed up more than +10% after reporting Q4 revenue of $876.4 million, well above the consensus of $838.6 million.
SentinelOne (S) closed up more than +6% after raising its 2026 revenue forecast to $998 million-$1 billion from a previous forecast of $996 million-$1 billion.
Celsius Holdings (CELH) closed up more than +5% after PepsiCo increased its stake in the company to approximately 11% on an as-converted basis and will nominate an additional director to serve on Celsius Holdings' board of directors.
Managed healthcare stocks gained on Friday. Molina Healthcare (MOH) closed up more than +3%, and Elevance Health (ELV) and Centene (CNC) closed up more than +2%. Also, UnitedHealth Group (UNH) closed up more than +2% to lead gainers in the Dow Jones Industrials. In addition, Humana (HUM) and CVS Health (CVS) closed up more than +1%.
Earnings Reports(9/2/2025)
Academy Sports & Outdoors Inc (ASO), HealthEquity Inc (HQY), Signet Jewelers Ltd (SIG), Zscaler Inc (ZS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Lower as Tech Shares Selloff

Key Points
The cybersecurity specialist unveiled its latest quarterly earnings report in the morning.
It showed double-digit growth in several key line items.
A well-received quarterly earnings report was the news propelling SentinelOne's (NYSE: S) shares higher on Friday. In late-session trading the cybersecurity stock was up nearly 7% in value, a rate that looked particularly good given the S&P 500 index's 0.7% dip.
A $1 billion quarter
SentinelOne's second quarter of fiscal 2026 saw the company book just over $242 million in revenue for a rather impressive 22% improvement year over year. Zooming out some, annualized recurring revenue (ARR) rose by 24% to $1 billion, the first time it has reached the 10-figure level.
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The company also pointed out that the number of clients with ARR of $100,000 or more increased by 24%, to a total of 1,513.
On the bottom line, non-GAAP (adjusted) net income more than tripled, to $13.2 million ($0.04 per share), from the year-ago result of $3.5 million.
SentinelOne essentially met the consensus analyst estimate for revenue. It did edge past the average pundit forecast for adjusted net profit, which was $0.03 per share.
In its earnings release, SentinelOne attributed the improvements to its integration of technologies that resonate with clients, including artificial intelligence (AI).
It quoted CEO Tomer Weingarten as saying that its "results highlight the momentum of our AI-powered platform, strengthening competitive position, and growing product differentiation."
In-line revenue guidance
SentinelOne also proffered guidance for both its current (third) quarter and the entirety of fiscal 2026. For the latter period, it's forecasting revenue of $998 million to slightly over $1 billion, with adjusted operating margin landing at 3%. The consensus analyst estimate for revenue is slightly under $999 million.
The company did not provide any bottom-line guidance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why SentinelOne Stock Was Soaring Today

The S&P 500 Index ($SPX) (SPY) today is down by -0.74%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.28%. September E-mini S&P futures (ESU25) are down -0.74%, and September E-mini Nasdaq futures (NQU25) are down -1.24%.
Stock indexes are moving lower today, weighed down by weakness in technology stocks. Marvell Technology is down more than -16% to lead semiconductor stocks lower after reporting that Q2 data center revenue missed estimates. Also, Dell Technologies is down more than -8% to lead computer hardware stocks lower after reporting tighter profit margins on AI servers.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks added to their losses after the August MNI Chicago PMI fell more than expected and after the University of Michigan’s US August consumer sentiment index was unexpectedly revised lower. Also, inflation pressures remain sticky after the US July core PCE price index, the Fed’s preferred inflation gauge, rose by the most in five months.
On the positive side for stocks, US consumer demand remains resilient after July personal spending rose by the most in four months. Also, the University of Michigan’s inflation expectations were unexpectedly revised lower. In addition, Autodesk is up more than +7% after reporting stronger-than-expected Q2 net revenue and forecasting Q3 revenue above consensus.
US July personal spending rose +0.5% m/m, the most in four months and right on expectations. July personal income rose +0.4% m/m, right on expectations.
The US July core PCE price index, the Fed’s preferred inflation gauge, rose to a 5-month high of +2.9% y/y from +2.8% y/y in June, right on expectations but well above the Fed’s 2% inflation target.
The US Aug MNI Chicago PMI fell -5.6 to 41.5, weaker than expectations of 46.0.
The University of Michigan’s Aug US consumer sentiment index was revised lower by -0.4 to 58.2, weaker than expectations of no change at 58.6.
The University of Michigan Aug 1-year inflation expectations were unexpectedly revised slightly lower by -0.1 to 4.8%, weaker than expectations of an upward revision to 5.0%. The Aug 5-10 year inflation expectations were revised lower by -0.4 to 3.5% from the previously reported 3.9%.
Dovish comments late Thursday from Fed Governor Christopher Waller were supportive of stocks, as he stated that he supports a 25-bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months. He said, “With underlying inflation close to 2%, market-based measures of longer-term inflation expectations firmly anchored, and the chances of an undesirable weakening in the labor market increased, proper risk management means the FOMC should be cutting the policy rate now.”
Regarding tariffs, President Trump late Monday threatened to impose new tariffs and export restrictions on advanced technology and semiconductors in retaliation against other nations’ digital services taxes that hit American companies. Last week, Mr. Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect last Monday and did not exclude goods already in transit.
In other recent tariff news, Mr. Trump on August 13 extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 89% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 52% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With Q2 earnings season winding down, over 95% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 fell to a 2-week low and is down -0.49%. China’s Shanghai Composite closed up +0.37%. Japan’s Nikkei Stock 225 closed down -0.26.
Interest Rates
September 10-year T-notes (ZNU5) today are down -3 ticks, and the 10-year T-note yield is up +2.1 bp to 4.225%.
Sep T-notes are under pressure today after the US July core PCE price index, the Fed’s preferred inflation gauge, rose to a 5-month high of +2.9% y/y. T-notes also have carryover pressure from weakness in 10-year German bunds after the German Aug CPI rose more than expected.
Losses in T-notes are limited after Fed Governor Christopher Waller said he supports a 25 bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months. Also, the University of Michigan’s Aug inflation expectations were unexpectedly revised lower, a dovish factor for Fed policy.
European government bond yields today are moving higher. The 10-year German bund yield is up +1.9 bp to 2.714%. 10-year UK gilt yield is up +2.1 bp to 4.720%.
The ECB’s July 1-year CPI expectations remained unchanged from June at +2.6%, which is stronger than the expected +2.5%. The ECB Jul 3-year CPI expectations unexpectedly climbed to +2.5%, stronger than expectations of no change at +2.4%.
German Aug unemployment unexpectedly fell by -9,000, showing a stronger labor market than expectations of +10,000.
German Jul retail sales fell -1.5% m/m, weaker than expectations of no change and the biggest decline in almost two years.
German Aug CPI (EU harmonized) rose +2.1% y/y, stronger than expectations of +2.0% y/y.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Chipmakers are under pressure today, led by a -16% plunge in Marvell Technology (MRVL) to lead losers in the Nasdaq 100 after it reported Q2 data center revenue of $1.49 billion, below the consensus of $1.52 billion. Also, Broadcom (AVGO) and Lam Research (LRCX) are down more than -4%, and Nvidia (NVDA) and Advanced Micro Devices (AMD) are down more than -3%. In addition, ARM Holdings Plc (ARM), ASML Holding NV (ASML), Applied Materials (AMAT), KLA Corp (KLAC), and Micro Technology (MU) are down more than -2%.
Dell Technologies (DELL) is down more than -8% to lead losers in the S&P 500, and makers of computer hardware are lower after reporting Q2 operating income of $2.28 billion, below the consensus of $2.30 billion. Also, Super Micro Computer (SMCI) is down more than -5% and Hewlett Packard Enterprise (HPE) is down more than -2%.
Caterpillar (CAT) is down more than -4% to lead losers in the Dow Jones Industrials after warning that it faces a larger-than-anticipated tariff headwind of as much as $1.8 billion this year.
Ulta Beauty (ULTA) is down more than -5% despite reporting better-than-expected Q2 net sales after it warned of a potential pullback by consumers.
IonQ Inc. (IONQ) is down more than -3% after filing for a potential offering of up to 12.4 million shares of its stock by multiple shareholders.
Dollar General (DG) is down more than -2% despite reporting better-than-expected Q2 EPS after it said it expects “more pressure” in selling, general, and administrative (SG&A) expenses in Q3 and warned of tougher gross margin comparison in Q4.
Autodesk (ADSK) is up more than +7% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue of $1.76 billion, better than the consensus of $1.72 billion, and forecasting Q3 revenue of $180 billion-$1.81 billion, stronger than the consensus of $1.77 billion.
Ambarella (AMBA) is up more than +17% after reporting Q2 adjusted EPS of 15 cents, well above the consensus of 6 cents, and raising its 2026 revenue growth estimate to 31%-35% from a May forecast of +19%-25%.
Affirm Holdings (AFRM) is up more than +12% after reporting Q4 revenue of $876.4 million, well above the consensus of $838.6 million.
SentinelOne (S) is up more than +4% after raising its 2026 revenue forecast to $998 million-$1 billion from a previous forecast of $996 million-$1 billion.
Celsius Holdings (CELH) is up more than +4% after PepsiCo increased its stake in the company to approximately 11% on an as-converted basis and will nominate an additional director to serve on Celsius Holdings’ board of directors.
Earnings Reports(8/29/2025)
Lionsgate Studios Corp (LION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Retreat as Tech Stocks Slump and Inflation Pressures Persist

The S&P 500 Index ($SPX) (SPY) today is down by -0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.12%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.92%. September E-mini S&P futures (ESU25) are down -0.46%, and September E-mini Nasdaq futures (NQU25) are down -0.87%.
Stock indexes are moving lower today, weighed down by weakness in technology stocks. Marvell Technology is down more than -16% to lead semiconductor stocks lower after reporting that Q2 data center revenue missed estimates. Also, Dell Technologies is down more than -9% to lead computer hardware stocks lower after reporting tighter profit margins on AI servers.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock indexes recovered from their worst levels on signs of resilient US consumer demand after July personal spending rose by the most in four months. However, price pressures remain sticky after the US July core PCE price index, the Fed's preferred inflation gauge, rose as expected by the most in five months.
US July personal spending rose +0.5% m/m, the most in four months and right on expectations. July personal income rose +0.4% m/m, right on expectations.
The US July core PCE price index, the Fed's preferred inflation gauge, rose to a 5-month high of +2.9% y/y from +2.8% y/y in June, right on expectations but well above the Fed’s 2% inflation target.
The US Aug MNI Chicago PMI fell -5.6 to 41.5, weaker than expectations of 46.0.
Dovish comments late Thursday from Fed Governor Christopher Waller were supportive for stocks, as he stated that he supports a 25-bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months. He said, "With underlying inflation close to 2%, market-based measures of longer-term inflation expectations firmly anchored, and the chances of an undesirable weakening in the labor market increased, proper risk management means the FOMC should be cutting the policy rate now."
Regarding tariffs, President Trump late Monday threatened to impose new tariffs and export restrictions on advanced technology and semiconductors in retaliation against other nations' digital services taxes that hit American companies. Last week, Mr. Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect last Monday and did not exclude goods already in transit.
In other recent tariff news, Mr. Trump on August 13 extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
The markets this week are focusing on any fresh tariff news or developments on ending the Ukraine-Russian war. Later today, the University of Michigan's final-Aug US consumer sentiment index is expected to be unrevised at 58.6.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 85% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 52% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With Q2 earnings season winding down, over 95% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 fell to a 2-week low and is down -0.26%. China's Shanghai Composite closed up +0.37%. Japan's Nikkei Stock 225 closed down -0.26.
Interest Rates
September 10-year T-notes (ZNU5) today are down -4 ticks, and the 10-year T-note yield is up +2.5 bp to 4.228%.
Sep T-notes are under pressure today after the US July core PCE price index, the Fed's preferred inflation gauge, rose to a 5-month high of +2.9% y/y. T-notes also have carryover pressure from weakness in 10-year German bunds after the German Aug CPI rose more than expected.
Losses in T-notes are limited after Fed Governor Christopher Waller said he supports a 25 bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months.
European government bond yields today are moving higher. The 10-year German bund yield is up +1.4 bp to 2.709%. 10-year UK gilt yield is up +2.5 bp to 4.724%.
The ECB's July 1-year CPI expectations remained unchanged from June at +2.6%, which is stronger than the expected +2.5%. The ECB Jul 3-year CPI expectations unexpectedly climbed to +2.5%, stronger than expectations of no change at +2.4%.
German Aug unemployment unexpectedly fell by -9,000, showing a stronger labor market than expectations of +10,000.
German Jul retail sales fell -1.5% m/m, weaker than expectations of no change and the biggest decline in almost two years.
German Aug CPI (EU harmonized) rose +2.1% y/y, stronger than expectations of +2.0% y/y.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Chipmakers are under pressure today, led by a -16% plunge in Marvell Technology (MRVL) to lead losers in the Nasdaq 100 after it reported Q2 data center revenue of $1.49 billion, below the consensus of $1.52 billion. Also, Nvidia (NVDA), Lam Research (LRCX), ARM Holdings Plc (ARM), ASML Holding NV (ASML), Broadcom (AVGO), Advanced Micro Devices (AMD), Applied Materials (AMAT), KLA Corp (KLAC), and ON Semiconductor Corp (ON) are down more than +1%.
Dell Technologies (DELL) is down more than -9% to lead losers in the S&P 500, and makers of computer hardware are lower after reporting Q2 operating income of $2.28 billion, below the consensus of $2.30 billion. Also, Super Micro Computer (SMCI) is down more than -4% and Hewlett Packard Enterprise (HPE) is down more than -1%.
Caterpillar (CAT) is down more than -3% to lead losers in the Dow Jones Industrials after warning that it faces a larger-than-anticipated tariff headwind of as much as $1.8 billion this year.
Ulta Beauty (ULTA) is down more than -4% despite reporting better-than-expected Q2 net sales after it warned of a potential pullback by consumers.
IonQ Inc (IONQ) is down more than -2% after filing for a potential offering of up to 12.4 million shares of its stock by multiple shareholders..
Autodesk (ADSK) is up more than +9% to lead gainers in the S&P 500 after reporting Q2 net revenue of $1.76 billion, better than the consensus of $1.72 billion, and forecasting Q3 revenue of $180 billion-$1.81 billion, stronger than the consensus of $1.77 billion.
Ambarella (AMBA) is up more than +23% after reporting Q2 adjusted EPS of 15 cents, well above the consensus of 6 cents, and raising its 2026 revenue growth estimate to 31%-35% from a May forecast of +19%-25%.
Affirm Holdings (AFRM) is up more than +18% after reporting Q4 revenue of $876.4 million, well above the consensus of $838.6 million.
SentinelOne (S) is up more than +4% after raising its 2026 revenue forecast to $998 million-$1 billion from a previous forecast of $996 million-$1 billion.
Celsius Holdings (CELH) is up more than +3% after PepsiCo increased its stake in the company to approximately 11% on an as-converted basis and will nominate an additional director to serve on Celsius Holdings' board of directors.
Earnings Reports(8/29/2025)
Lionsgate Studios Corp (LION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Decline on Weakness in Tech Stocks and Sticky Inflation Pressures

SentinelOne (NYSE:S) reported fiscal second quarter ended July 31, 2025, results on August 28, 2025, delivering 24% year-over-year (YoY) annual recurring revenue (ARR) growth to surpass $1 billion (non-GAAP), 22% YoY revenue growth to $242 million, with an industry-leading 79% gross margin. Management raised full-year revenue guidance for the fiscal year ending Jan. 31, 2026, to $998 million to $1.002 billion (non-GAAP) and highlighted the approximately $180 million acquisition of Prompt Security, expected to close in the fiscal third quarter ending Oct. 31, 2025, to expand into GenAI security and data loss prevention (DLP).
Record ARR and platform traction drive outperformance
Net new ARR (non-GAAP) exceeded internal expectations by approximately 40%, with both new logo acquisition and existing customer expansion each contributing roughly half of growth (non-GAAP), alongside a 23% year-over-year increase in customers with ARR above $100,000 (non-GAAP). Non-endpoint products such as Purple AI, AI SIEM (Security Information and Event Management), and data solutions represented about 50% of total quarterly bookings (non-GAAP). This indicates successful platform diversification.
"Our total ARR grew 24% and crossed $1 billion, a significant milestone in our growth journey. We also achieved a record second quarter net new ARR reflecting positive year-over-year growth of over 20% and a strong uptick in new business generation. That's a clear reflection of our team's execution, business momentum, and rising demand for SentinelOne's AI-powered cybersecurity. Our fiscal second quarter performance was broad-based, with strong contributions from new customer additions, expansion with existing accounts, and increased adoption of our AI and data solutions. These results underscore our stronger competitive position and growing product differentiation. We continue to maintain a top-tier growth profile while driving operating leverage. Following a strong fiscal second quarter outperformance, we're raising our full-year revenue outlook while remaining prudent in our assumptions for the second half given a dynamic macro backdrop."
-- Tomer Weingarten, CEO
This momentum signals a tangible business mix shift and validates SentinelOne's strategy to drive high-margin, multiproduct expansion within both new and existing enterprise accounts (non-GAAP). This supports increased operating leverage and durability of growth.
SentinelOne Flex shifts consumption model, fuels larger deals
Launched in the fiscal second quarter ended July 31, 2025, SentinelOne Flex yielded its first eight-figure total contract value (TCV) platform deal, enabling customers to dynamically access the full suite of nearly 30 modular solutions, with early adoption by mid- and large-sized organizations looking to scale security investment efficiently. Flex is expected to support deal size growth, increase average contract duration, and streamline procurement for renewals and new logos, with Prompt Security being added to the available product set.
"We've also launched SentinelOne Flex, a major step forward in how customers adopt the Singularity platform. It's a unified flexible licensing model that gives organizations the agility to manage entitlements, seamlessly deploy new platform capabilities, and drive greater return on their security investments. Flex provides customers with full access to the entire Singularity platform, enhancing our opportunity to expand our footprint across customer environments. The reception for Flex is outstanding, with an 8-figure total deal value validating the model and many customers and prospects choosing the new structure. It enables our team to land bigger deals with higher efficiency and expand with greater velocity."
-- Tomer Weingarten, CEO
This augments the long-term value per customer and enhances sales pipeline visibility.
Expanding AI-native platform with Prompt Security acquisition
The $180 million acquisition of Prompt Security, expected to close in the fiscal third quarter ending Oct. 31, 2025, provides SentinelOne with proprietary capabilities for runtime GenAI governance, endpoint-based data protection, and DLP, directly addressing urgent enterprise risks around uncontrolled AI usage and shadow IT. Prompt's technology integrates natively into the Singularity platform, targeting both endpoint (SOC and DLP teams) and cloud security buyers and positions SentinelOne as an early mover in GenAI security as adoption accelerates across industries.
"To extend our innovation lead and further differentiate our AI-powered platform, we also announced the acquisition of Prompt Security, a pioneer in securing generative AI at runtime, preventing GenAI-related data leakage, and delivering security for AI agents. GenAI adoption is exploding across all industries, which brings a new class of risks and exposure. As GenAI and agentic AI fundamentally reshape how businesses operate, new risks are emerging around visibility, compliance, data leakage, and control. Prompt Security enhances the Singularity platform with the ability to monitor, govern, and control GenAI usage in the enterprise. These are critical capabilities that every CIO and CISO is now prioritizing."
-- Tomer Weingarten, CEO
This move opens an incremental total addressable market (TAM), fortifies SentinelOne’s claim to AI-native security leadership, and creates the foundation for upside as GenAI and DLP compliance requirements proliferate in the enterprise segment.
Looking Ahead
Management guided fiscal third quarter ending Oct. 31, 2025, revenue (non-GAAP) to $256 million (22% YoY growth), with full-year revenue (non-GAAP, fiscal year ending Jan. 31, 2026) now expected in the $998 million to $1.002 billion range (22% YoY), gross margin of 78.5% to 79% for the full year, and full-year operating margin (non-GAAP) of approximately 3%, including an 80 basis point dilution from the Prompt Security acquisition. Management maintains expectations for positive full-year free cash flow and operating profit, and expects the Prompt acquisition to close in the fiscal third quarter ending Oct. 31, 2025, with minimal fiscal year ending Jan. 31, 2026, revenue impact but a strategic position for long-term growth in the GenAI security market.
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SentinelOne ARR Tops 1 Billion in Q2

SentinelOne (S) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this cybersecurity provider would post earnings of $0.02 per share when it actually produced earnings of $0.02, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
SentinelOne, which belongs to the Zacks Security industry, posted revenues of $242.18 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 0.07%. This compares to year-ago revenues of $198.94 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
SentinelOne shares have lost about 22.8% since the beginning of the year versus the S&P 500's gain of 10.2%.
What's Next for SentinelOne?
While SentinelOne has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SentinelOne was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $254.15 million in revenues for the coming quarter and $0.20 on $996.62 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Security is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Zscaler (ZS), has yet to report results for the quarter ended July 2025. The results are expected to be released on September 2.
This cloud-based information security provider is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of -9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Zscaler's revenues are expected to be $706.23 million, up 19.1% from the year-ago quarter.
Should You Invest in SentinelOne, Inc. (S)?
Before you invest in SentinelOne, Inc. (S), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SentinelOne (S) Beats Q2 Earnings and Revenue Estimates

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in SentinelOne Inc (Symbol: S), where a total volume of 27,225 contracts has been traded thus far today, a contract volume which is representative of approximately 2.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.7% of S's average daily trading volume over the past month, of 6.0 million shares. Particularly high volume was seen for the $18 strike call option expiring March 20, 2026, with 2,541 contracts trading so far today, representing approximately 254,100 underlying shares of S. Below is a chart showing S's trailing twelve month trading history, with the $18 strike highlighted in orange:
AGNC Investment Corp (Symbol: AGNC) saw options trading volume of 73,194 contracts, representing approximately 7.3 million underlying shares or approximately 44.6% of AGNC's average daily trading volume over the past month, of 16.4 million shares. Particularly high volume was seen for the $9 strike call option expiring September 19, 2025, with 33,109 contracts trading so far today, representing approximately 3.3 million underlying shares of AGNC. Below is a chart showing AGNC's trailing twelve month trading history, with the $9 strike highlighted in orange:
And Ambarella, Inc. (Symbol: AMBA) saw options trading volume of 2,354 contracts, representing approximately 235,400 underlying shares or approximately 43.9% of AMBA's average daily trading volume over the past month, of 535,760 shares. Particularly high volume was seen for the $70 strike put option expiring August 29, 2025, with 218 contracts trading so far today, representing approximately 21,800 underlying shares of AMBA. Below is a chart showing AMBA's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for S options, AGNC options, or AMBA options, visit StockOptionsChannel.com.
Also see:
Cheap Stocks With Potential
Funds Holding PLAG
Funds Holding PEPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: S, AGNC, AMBA

Key Points
SentinelOne (NYSE:S) exceeded $1.0 billion in annualized recurring revenue (ARR) as of the second quarter, with
Non-GAAP operating margin turned positive at 2% but free cash flow remained negative, highlighting the tradeoff between growth and profitability.
Management raised full-year revenue guidance and projects continued double-digit growth, though growth rates have slowed compared to prior years.
SentinelOne (NYSE:S), a cybersecurity company specializing in artificial intelligence-powered security software, announced its results for the second quarter of fiscal 2026 on August 28, 2025. The most notable news from the release was the company reaching $1.0 billion in annualized recurring revenue (ARR), with quarterly revenue climbing to $242.2 million (GAAP)-- a 22% year-over-year increase, and matched internal guidance. Non-GAAP earnings per share rose to $0.04, and the firm achieved a positive non-GAAP operating margin. However, free cash flow remained negative. Management raised its full-year revenue outlook. Overall, the quarter saw continued momentum, but with signs of moderating top-line growth.
Metric
Q2 FY2026(ended July 31, 2025)
Q2 FY2025(ended July 31, 2024)
Y/Y Change
EPS (Non-GAAP)
$0.04
$0.01
300 %
Revenue (GAAP)
$242.2 million
$198.9 million
22 %
Gross Margin (Non-GAAP)
79 %
80 %
(1.0) pp
Operating Margin (Non-GAAP)
2 %
(3 %)
5.0 pp
Free Cash Flow Margin
(3 %)
(3 %)
0 pp
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2026 earnings report.
Understanding SentinelOne: What the Company Does and Where It’s Focusing
SentinelOne delivers cybersecurity software that uses artificial intelligence to identify and respond to threats in real time. Its core product is the Singularity Platform, an AI-driven suite that autonomously protects cloud, endpoint, and data environments. The platform relies on several AI models for threat detection and rapid incident response without the need for human intervention.
The company’s recent strategy has emphasized broadening platform functionality, expanding into international markets, and deepening penetration among existing customers. Key success factors include AI differentiation, expanding recurring revenue through large enterprise clients, and maintaining operational efficiency as it grows. With cybersecurity threats becoming more complex, market expansion and product integration remain central to its ongoing strategy.
Quarter Highlights: Revenue, Customer Growth, and Platform Progress
SentinelOne's revenue (GAAP) increased 22% to $242.2 million, meeting internal guidance. This reflects not only ongoing demand for its AI-driven cybersecurity platform but also the company’s ability to attract larger customers. Annualized recurring revenue, a measure of predictable, subscription-based sales, surpassed $1.0 billion for the first time. The company also reported that customers generating $100,000 or more in annual recurring revenue grew 23% to 1,513.
The company's non-GAAP operating margin swung from negative to positive, improving from (3%) in the prior year to 2%. Non-GAAP earnings per share climbed to $0.04. On the other hand, free cash flow margin held steady at (3%), as cash generation remained a challenge. GAAP profitability remains elusive, as the company continues to book sizable GAAP losses after accounting for non-cash expenses such as stock-based compensation. Operating cash flow, while flat for the quarter, shows some improvement on a trailing twelve-month basis.
Platform adoption remains a business focus, with ongoing investment in AI—particularly in its AI-powered cybersecurity platform and increasing automation across endpoint, cloud, and data security modules. The release did not detail new product launches or major partnerships this quarter, and cited "robust growth and platform adoption". Competition and lengthening sales cycles were once again mentioned as risks, though no new adverse developments were highlighted.
Share repurchases continued as part of the company’s buyback program. Stock-based compensation (GAAP) rose year over year.
Business, Product, and Customer Context
SentinelOne positions itself around AI-driven security, automating the detection and response to cyber threats across client devices, cloud services, and data storage. Its Singularity Platform, encompassing cloud security, data protection, and endpoint defense solutions, aims to offer a unified approach to cybersecurity. The firm’s focus on AI—citing “relentless focus on innovations unifying AI, data, and security”—aligns with broader enterprise trends requiring rapid response to evolving digital threats.
Customer metrics showed solid progress this period, with the number of clients spending over $100,000 in annual recurring revenue rising to 1,513.
Looking Ahead: Management Outlook and What to Watch
For the third quarter, management forecasts revenue of $256 million. The company raised its full-year revenue outlook to between $998 million and $1.002 billion. Expected non-GAAP gross margin is guided to 78.5% to 79%, with a projected 4% non-GAAP operating margin for the third quarter. Management reaffirmed its commitment to achieving full-year operating profitability and positive free cash flow.
While strong top-line growth and customer traction continued, growth rates have moderated compared to earlier years. Investors will likely focus in future quarters on the sustainability of large customer additions, whether improvements in profitability can be achieved alongside growth, and if free cash flow can turn consistently positive. Persistent GAAP losses and high stock-based compensation remain issues to watch as the company matures and strives for long-term profitability.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends SentinelOne. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SentinelOne, Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — low

Security parameters