SentinelOne Q2 Beat and $1B ARR: Are Takeover Rumors and the Valuation Finally Justifying a Buy?
SentinelOne’s stock rallied into the weekend after delivering a cleaner fiscal Q2 beat and surpassing the $1.0 billion ARR milestone — a strategic scale threshold that moves the AI-native cybersecurity vendor into more serious platform conversations. Management guided above consensus for Q3 and nudged its FY26 revenue outlook to roughly $1.0 billion, signaling durable demand across autonomous endpoint, cloud, and identity security. The print also rekindled takeover speculation and a string of price-target lifts. Ultimately, this is a valuation and durability call. Around $18.86 per share, the market is weighing a clearer path to profitability, a solid balance sheet, and latent M&A optionality against competitive intensity and incumbent scale. Below, we triangulate the fresh results with real-time market conditions, rate policy context, and Wall Street/insider signals to evaluate whether the risk/reward now tilts toward a buy.