SentinelOne Stock Slips As Analysts Cut Price Forecasts On Soft Guidance, ARR Miss, Product Retirement

SentinelOne, Inc S stock is trading lower on Thursday. The company reported fourth-quarter financial results Wednesday, and multiple Wall Street firms lowered their respective price targets on the stock.

SentinelOne reported fourth-quarter revenue of $225.5 million, up 29%, beating the consensus estimate of $222.25 million. The cybersecurity company reported four-quarter adjusted earnings of four cents per share, beating one cent per share estimates.

Also Read: This SentinelOne Analyst Cuts Forecast Ahead Of Q4; Projects Marginal Upside To ARR, Better Profitability

SentinelOne expects first-quarter revenue of ~$228 million versus estimates of $235.18 million.

Scotiabank analyst Patrick Colville maintained SentinelOne with a Sector Perform and lowered the price target from $26 to $19.

Needham analyst Matt Dezort reiterated a Buy rating on SentinelOne and lowered the price target from $32 to $23.

WestPark Capital analyst Casey Ryan maintained SentinelOne with a Buy and a $31 price target.

JPMorgan analyst Brian Essex maintained an Overweight on SentinelOne with a price target of $22, down from $27.

Scotiabank: SentinelOne’s fourth-quarter net new ARR came in just a hair below consensus, and the fiscal 2026 guide implies that the net new ARR will be up just 2% next year.

Scotiabank’s Colville noted investors were hoping for more based on the Lenovo Group Ltd. LNVGY partnership announced in 2024.

SentinelOne is retiring its legacy Deception product, which negatively impacted fourth-quarter ARR and is expected to impact fiscal 2026 negatively by ~$10 million.

On a positive note, operating margin profitability flipped to positive this quarter for the first time and the company is guiding continued improvement in fiscal 2026.

Colville projected first-quarter revenue of $228.3 million and adjusted EPS of 2 cents.

Needham: SentinelOne reported a mixed fiscal fourth quarter and offered initial guidance for fiscal 2026 that fell short of investor expectations.

SentinelOne delivered on its goal of reaccelerating new business in the fiscal second half, driving total ARR growth of 27% to $920.1 million, which slightly missed consensus.

Revenue guidance for fiscal first-quarter and fiscal 2026 was $8 million and $19 million below Street, respectively.

Management discussed demand trends and platform adoption driven by emerging solutions (Cloud, AI, SIEM), which comprised over 50% of fiscal 2025 new bookings.

SentinelOne expects ~$200 million of net new ARR in fiscal 2026, resulting in ~$1.12 billion of ARR of +22% with the retirement of the legacy Deception solution weighing on fiscal first-half before new business reaccelerates in the fiscal second half.

Needham’s Dezort projected first-quarter revenue of $228 million and adjusted EPS of 2 cents.

WestPark Capital: SentinelOne reported fourth-quarter results ahead of expectations at $225.5 million and four cents compared to Street estimates of $223 million and $0.01 and WestPark Capital’s estimates of $222 million and two cents.

Annual recurring revenue (ARR) was $920.1 million, up 27%. $100K+ customers grew 25% in the quarter to 1,411.

Fiscal 2026 guidance calls for $1.007 billion-$1.012 billion, below street expectations for $1.026 billion. One driver of this lower-than-expected guidance is the retirement of a Deception module, which helped deter identity-based attacks. The impact for this product retirement is approximately $10 million in fiscal 2026, with close to a $5 million impact in the first quarter of fiscal 2026.

WestPark Capital’s Ryan projected first-quarter revenue of $228 million and EPS of three cents.

JPMorgan: SentinelOne delivered slightly better than expected fourth-quarter revenue growth with better profitability than expected, and initial fiscal 2026 guidance reflects better profitability and free cash flow, said JPMorgan’s Essex.

But, fourth-quarter NNARR missed consensus expectations, while fiscal 2026 guidance for ARR and revenue were also weaker than expected. A meaningful driver of the NNARR miss and weak guide was the retirement of Deception technology that was acquired when the company acquired it, along with the acquisition of Attivo Networks in 2022.

Ample customer traction, pipeline strength, strong win rates, and improving attach rates supported the underlying strength of the business, noted JPMorgan. The stock traded off after hours following the weaker-than-anticipated results and guidance, and analyst Essex expects weakness will remain near-term.

Free cash flow could provide better valuation support once investors digest the disappointment.

Essex projected first-quarter revenue of $228 million and adjusted EPS of two cents.

S Price Action: SentinelOne stock is down 3.47% at $18.63 at publication Thursday.

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