Is it grammatically correct to use potentials in the following sentence:
Software tools analyze data and report potentials issues.
When you are using it in one of its noun senses and it is plural:
All of the batteries have different potentials.
(This would also be the case if you were using it in a verb sense used in third person singular, but potential doesn't usually get used as a verb).
Adjectives in English do not, unlike some other languages, change to agree with the noun they are modifying, so we would use potential rather than potentials with both plural and singular cases. So in any of its adjective senses we use potential:
Software tools analyse data and report potential issues.
Each potential issue should be investigated.