Episode Details

S Stock: HOLD Call - Growth Holds, Losses Narrow Q1 FY2027 SentinelOne (NYSE: S) Q1 FY2027 earnings breakdown. Revenue grew 20.8% YoY to $276.7M (+2.0% sequential). The GAAP net loss narrowed to -$76.2M from -$208.2M a year ago — but the year-ago quarter carried a large one-time charge, so on a clean operating basis the improvement is far more modest (operating loss -$80M vs -$87M). The real bright spot: free cash flow turned positive at +$38.1M and the balance sheet holds $657M net cash with zero debt. Heavy stock-based compensation (~27% of revenue) keeps GAAP profitability out of reach near term. VERDICT: HOLD (Conviction 3/5 MODERATE) - HOLD @ $18.02 | Accumulate below $15.00 | Soft stop $12.00 | Avoid above $24.00 KEY METRICS Q1 FY2027: - Total Revenue: $276.7M (+20.8% YoY) - Gross Margin: 71.8% - GAAP Operating Margin: -28.8% - GAAP Net Loss: -$76.2M (diluted EPS -$0.23) - Free Cash Flow: +$38.1M (13.8% margin) - Cash + ST Investments: $657M | Total Debt: $0 GUIDANCE: Full-year revenue guide raised toward ~$1.18-1.19B (~22% growth); management guided to positive non-GAAP operating margin for the full year. WALL STREET: 6 Strong Buy / 11 Buy / 18 Hold / 2 Sell — median 12-mo PT $21. PEERS: SentinelOne grows in the low-twenties alongside CrowdStrike and Zscaler, but trades at the lowest EV/Sales (~4.9x) of the high-growth cybersecurity cohort — cheaper because it is still GAAP-unprofitable and a fraction of CrowdStrike's scale. CEO Tomer Weingarten: "This quarter we delivered positive free cash flow and our first full-year guide for positive non-GAAP operating margin, with AI now a core driver of platform adoption." DATA SOURCES: Financial Modeling Prep, SentinelOne Q1 FY27 press release + earnings call. Not Financial Advice - Informational Only. chargedalpha.com