investment.com — Sentinel One Microsoft Corp.’s (NYSE:) new partnership with PC maker Lenovo is expected to contribute “significantly” to the cybersecurity group’s results over the next 12 months, according to analysts at Wells Fargo.
The two companies announced Monday that they have entered into a multi-year collaboration to bring AI-powered digital protection to “millions of Lenovo devices worldwide.”
Under the terms of the deal, Lenovo said it will include SentinelOne’s enterprise cybersecurity platform and generative AI capabilities in its new PC shipments. The company said it will also offer upgrades to existing customers.
Lenovo also said it will build a new detection and response service using AI from SentinelOne technology “as its foundation.”
“Cyber resilience is critical to business continuity as organizations increasingly face the unpredictable,” said Patricia Wilkie, senior vice president of Lenovo’s Solutions and Services Group Sales International, in a statement. “Our security services collaboration with SentinelOne is another key aspect of Lenovo’s cybersecurity and cyber resilience services that are designed to help protect customers from anomalous threats.”
The partnership could add 5% to the total deal value — or roughly $50 million — to SentinelOne’s annual recurring revenue over the course of 12 months, Wells Fargo analysts said, noting the impact would be “similar” to what CrowdStrike (NASDAQ:) achieved after its deal with Lenovo rival Dell (NYSE:) last year.
Citing data from the research group Gartner Lenovo is the “largest PC maker,” the analysts added, noting that it shipped 14.8 million units in the second quarter of 2024 — which translates to nearly a quarter of the total PC market. By comparison, Dell is the third-largest PC maker, accounting for 17% of total units shipped.
Meanwhile, analysts said SentinelOne has gained market share “at the expense of CrowdStrike,” which has led to increased revenue growth. They gave the stock an “overweight” rating and a $30 price target.