SentinelOne (NYSE: S) stock tumbled about 15% in pre-market trading Thursday after the cybersecurity firm issued lower-than-expected first-quarter and full-year revenue forecasts.
In its fourth quarter, SentinelOne posted a 29% YoY revenue growth to $225.5 million, topping the consensus estimate of $222.25 million. The firm also reported adjusted earnings of $0.04 per share, beating the $0.01 per share forecast.
The company highlighted a 27% growth in annualized recurring revenue (ARR), reaching $920.1 million as of January 31. It also saw a 25% increase in customers with an ARR of $100,000 or more, totaling 1,411. SentinelOne ended the quarter with $1.1 billion in cash, cash equivalents, and investments.
CEO Tomer Weingarten praised the results, saying,
“Our strong finish to the fiscal year reflects solid execution and the accelerating adoption of our platform solutions.”
He added,
“We’re on track to surpass $1 billion in ARR and revenue this year, a key milestone in our growth journey. For over a decade, we’ve patented leading machine learning security models — now, we’re pioneering fully autonomous, agentic AI workflows.”
SentinelOne (NYSE: S) expects first-quarter revenue to be around $228 million, falling short of the estimated $235.18 million. For the full year 2026, the company forecasts revenue of $1.007 billion, compared to the expected $1.012 billion.
Following the earnings report, Jefferies analyst Joseph Gallo revised his outlook. He lowered the price target for SentinelOne stock to $25 from $30, while maintaining a Buy rating on the shares.
