Cybersecurity is a broad industry in the computer and technology sector and consists of many types of companies targeting different aspects of online protection. Just as home security can include surveillance cameras, alarm systems, panic rooms and fireproof safes, cybersecurity can entail monitoring endpoints and events to backup and protect data. Here are two cybersecurity stocks with different reactions to their earnings to offer buying opportunities now and on deeper pullbacks.
SentinelOne: Endpoint protection with AI
Guardian today
Guardian One
(As of 05:19 PM ET)
- 52 week range
- $14.33
▼
$30.76
- Price target
- $29.44
In terms of computing and cybersecurity, endpoints refer to devices that provide access to a network that can send and receive data. Endpoints can range from desktops, laptops, and mobile devices to servers and virtual machines. Hackers target endpoints to gain unauthorized access to a network and its data. Sentinel One Company New York Stock Exchange: S Specializes in protecting artificial intelligence (AI)-powered autonomous endpoints with its Singularity platform. It provides granular endpoint management, enabling administrators to effectively monitor, secure, and manage devices. Its AI and machine learning algorithms are constantly learning and adapting to evolving cyber threats.
The CrowdStrike boom that wasn’t
SentinelOne was expected to be a major beneficiary of CrowdStrike Holdings Inc Nasdaq:CRWD The incident that occurred in July 2024. The software update released by the company caused widespread dissemination Microsoft Corporation Nasdaq: MSFT Windows outage across 8.5 million devices, causing $5.4 billion in damage, including shutdown of more than 700 devices United Airlines Holdings Company Nasdaq: UAL Flights. The incident sent SentinelOne shares soaring in anticipation of a mass exodus of CrowdStrike customers. Unfortunately for SentinelOne, that didn’t materialize, at least in the third quarter.
SentinelOne misses by a penny
For the fiscal third quarter of 2025, SentinelOne reported earnings per share at breakeven, which beat consensus estimates by 1 cent. Revenue rose 28.3% year over year to $210.6 million, beating consensus estimates of $209.73 million. Annual recurring revenue increased 29% year over year to $859.7 million. GAAP gross margin expanded 140 basis points to 74.7%. However, operating losses also rose 9.4% year-over-year to $89.1 million, and research and development expenses rose 34.7% year-over-year to $70.4 million. There is a possibility that SentinelOne may have gained new customers from CrowdStrike, but the move to their platform could take several quarters to become material. Customers with an ARR of more than $100,000 rose 24% to 1,310. The company ended the quarter with $1.1 billion in cash and investments.
Positive FCF causes SentinelOne to issue bullish guidance
SentinelOne stock forecast today
$29.44
29.75% upModerate purchase
Based on 26 analyst ratings
| High expectations | $34.00 |
|---|---|
| Average expectations | $29.44 |
| Low expectations | $23.00 |
SentinelOne stock forecast details
The company delivered positive free cash flow for the first time on a trailing-twelve-month basis, prompting SentinelOne to raise its revenue growth forecast to 32% year-over-year for fiscal 2025.
SentinelOne issued upward guidance for Q4 revenue of $222 million versus consensus estimates of $220.63 million.
Fiscal 2025 revenues are expected to be approximately $818 million, exceeding consensus estimates of $815.65 million. Incidentally, the market reacted by selling shares 13.2% the next day to close at $24.89. The sell-off continued for several weeks, reaching a low of $21.55, providing an immediate buying opportunity for bullish investors.
Rubric: Protecting the Data Ecosystem
Rubric today
(As of 05:19 PM ET)
- 52 week range
- $28.34
▼
$75.79
- Price target
- $64.11
If SentinelOne is the equivalent of a home monitoring system, then Rubric Company New York Stock Exchange: RBRC It is the equivalent of a heavy bank vault that protects valuables.
The valuables, in this case, are the data. Rubrik provides comprehensive data protection, management, and immutable backup services through its unique zero-trust architecture.
They specialize in cyber resilience, data archiving, recovery and threat monitoring through their Rubrik Security Cloud platform.
Rubrik is in hyper-growth mode as a newly listed company
Rubrik most recently became a public company in April 2024, with the stock falling to a low of $28.34 on June 17, 2024. Its most recent fiscal earnings report for the third quarter of 2025 stunned investors and analysts, sending shares soaring to a new high of 75.79 USD before falling towards closing the gap at $62.06. The company reported a third-quarter loss of 21 cents per share, which still crushed consensus estimates by 19 cents. Revenue rose 42.6% year-over-year to $236.2 million, sharply beating consensus estimates of $217.5 million. Subscription revenue rose 38% year over year to just over $1 billion. Subscription revenue jumped 55% year-over-year to $221.5 million. The company ended the quarter with $632 million in cash and short-term investments.
Growth continues with upside guidance
According to consensus estimates, Rubrik expects FQ4 EPS to lose between 41 cents to 37 cents versus a low of 41 cents. Revenues are expected to range between $231.5 million to $233.5 million versus consensus estimates of $224.47 million. Full-year fiscal 2025 revenues are expected to range between $860 million and $862 million versus $834.12 million. Non-GAAP EPS loss is expected to be between $1.96 and $1.82. Rubrik’s partnership with fData storage leader Lash Group Pure Storage Company New York Stock Exchange: BSTG To provide businesses with a complete cyber resilience solution consisting of Rubrik’s Security Cloud, FlashArrayTM and FlashBlade from Pure Storage.
Cyber resilience drives growth
Rubric stock forecast today
$64.11
-5.62% downsideHe buys
Based on 20 analyst reviews
| High expectations | $83.00 |
|---|---|
| Average expectations | $64.11 |
| Low expectations | $40.00 |
Rubrik stock forecast details
Rubrik CEO Bipul Sinha said that cyber resilience is the number one topic in cybersecurity. Businesses accept the inevitability of cyberattacks and breaches. What matters most is the ability to withstand attacks as well as the ability to recover quickly. Rubrik claims to offer the fastest electronic refund process to its customers.
“We are the only vendor in the market that combines rapid cyber recovery with data security posture management, or DSPM,” said CEO Sinha. “We believe that DSPM combined with cyber recovery is the only way to provide complete cyber resilience. In short, organizations are turning to Rubrik as Its Trusted Partner in Cyber Resilience Because We Can Confidently Achieve the Cyber Recovery Time Objective or RTO Pullbacks in Rubrik shares to the lower gap-fill level of $54.90 represent a strong pullback opportunity for bullish investors.
Before you consider SentinelOne, you’ll want to hear this.
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If a company’s CEO, COO, and CFO were all selling shares of their stock, would you want to know?
