SentinelOne Is Up 42% This Year and Reports Earnings on August 27. Should You Buy Before the Earnings Release?

August 23, 2026 - 21:09

SentinelOne has been on a solid run in 2024, with shares climbing roughly 42 percent since January. That kind of momentum naturally raises the question: should investors jump in before the company reports earnings on August 27, or is the good news already priced in?

The cybersecurity firm has benefited from a broader tailwind in the sector, as businesses continue to prioritize endpoint protection and AI-driven threat detection. SentinelOne's platform, which uses autonomous AI to respond to attacks, has carved out a niche against larger rivals like CrowdStrike and Microsoft. The company has also made strides in expanding its customer base, particularly among enterprise clients, and has been pushing into new areas like cloud security and identity protection.

However, the stock's run this year means expectations are high. Analysts are looking for revenue growth of around 30 percent year over year, which would be a slowdown from the torrid pace of recent quarters. The company is still not profitable on a GAAP basis, though it has been making progress on free cash flow. That means the market will be watching closely for any signs of margin improvement or guidance that suggests the growth story is holding up.

There is also the broader competitive landscape to consider. CrowdStrike has been aggressive with its own AI features and platform consolidation, and price competition could pressure SentinelOne's average deal size. On the other hand, SentinelOne has been winning some high-profile deals and recently announced a partnership that could expand its reach into managed security services.

The key question for investors is whether the stock can sustain its valuation. At current levels, shares trade at a premium to many peers, which leaves little room for error. If the company beats on revenue and raises guidance, the stock could move higher. But if management sounds cautious about the second half of the year, the pullback could be sharp.

For those considering a position, the earnings release is a binary event. Buying before it means accepting the risk of a post-earnings drop, even if the fundamentals are solid. Waiting until after the report gives you clarity on the numbers and management's tone, but you may end up paying a higher price if the results are strong.

There is no clear right answer. SentinelOne is a quality company in a growing market, but the stock is not cheap. If you believe the long-term story and can stomach volatility, a small position before earnings might make sense. If you prefer to see the quarter first, there is nothing wrong with waiting. Either way, the August 27 report will likely set the tone for the stock into the fall.