SentinelOne vs. Fortinet: Which Cybersecurity Stock is the Better Buy?

An analysis by Zacks suggests SentinelOne (S) is better positioned for growth in 2025 compared to Fortinet (FTNT), citing SentinelOne's 23% year-over-year revenue growth and a 20% free cash flow margin in the first quarter of fiscal 2026, driven by its AI platform and cloud security suite; SentinelOne's fiscal 2026 earnings are projected to increase 280% year over year, while Fortinet faces headwinds from macro uncertainty despite a 29% growth in AI-powered SecOps. Additionally, SentinelOne's stock is considered relatively cheaper with a lower forward P/S ratio.

Analysis

SentinelOne (S) demonstrates a stronger growth trajectory and more favorable investment profile for 2025 compared to Fortinet (FTNT) within the cybersecurity sector. SentinelOne reported robust Q1 fiscal 2026 results, featuring 23% year-over-year revenue growth and a record 20% free cash flow margin, underscoring its momentum in AI-driven security operations. Key drivers include its Singularity platform, which has achieved significant enterprise adoption, and its data solutions surpassing $100 million in Annualized Recurring Revenue (ARR). Innovations like Purple AI, exhibiting triple-digit booking growth and a 25% attach rate, alongside the new Athena agentic AI system and the Unified Cloud Security Suite, are expanding deal sizes and market reach, including a notable Fortune 500 customer win and FedRAMP High authorization. Consequently, SentinelOne's fiscal 2026 earnings are projected to surge by 280% year-over-year to 19 cents per share, with revenues expected to grow 21.4% to $997.27 million. In contrast, Fortinet, while seeing 29% year-over-year growth in its AI-powered SecOps business (now 10% of total business) and a 30% increase in $1 million-plus deals in Q1 2025, faces headwinds from macroeconomic uncertainty and cautious sales forecasts. Fortinet's projected 2025 earnings growth is a more modest 4.22% to $2.47 per share, with revenue growth anticipated at 13.36% to $6.75 billion. Valuation metrics also favor SentinelOne, with its forward 12-month price-to-sales (P/S) ratio at 5.55X, significantly lower than Fortinet's 11.19X. This disparity, coupled with SentinelOne's 17.5% year-to-date share price decline versus Fortinet's 10.8% gain, suggests more potential upside for SentinelOne.

Key Decisions for Investors

• Investors seeking high-growth exposure in the cybersecurity sector should consider SentinelOne, given its strong revenue growth, improving free cash flow margins, innovative AI product pipeline, and comparatively attractive valuation.
• For Fortinet, its established market presence and steady SecOps growth are positive, but the more cautious near-term outlook, higher valuation, and potential impact from macroeconomic uncertainties warrant a more neutral stance; existing positions might be held, while new investments should be carefully weighed against these factors.
• Closely monitor SentinelOne's execution on its platform strategy, particularly the adoption rates and revenue contribution from Purple AI, Athena, and the Unified Cloud Security Suite, as these are critical to achieving its ambitious growth targets.
• Evaluate Fortinet's upcoming earnings reports for any shifts in sales guidance and management commentary on macroeconomic impacts to gauge potential changes in its growth trajectory and ability to navigate current market conditions.