TLDR
- Q4 FY2026 revenue reached $271.2M for SentinelOne, reflecting 20% year-over-year growth and meeting analyst projections.
- Full-year revenue surpassed $1 billion for the first time in company history, while ARR climbed 22% to reach $1.119B.
- The company posted record Q4 net new ARR of $64M and non-GAAP EPS of $0.07, topping the $0.06 consensus.
- Forward guidance for FY2027 revenue ($1.195B–$1.205B) and Q1 ($276M–$278M) failed to meet investor expectations.
- Analysts at Scotiabank lowered their price target to $15 from $17, expressing concern over spending constraints and limited evidence of major client acquisitions.
SentinelOne (S) reported impressive quarterly results, yet shares declined as the company’s future revenue projections underwhelmed market participants.
The enterprise security company announced fourth-quarter fiscal 2026 revenue of $271.2 million, representing 20% year-over-year expansion. This figure aligned closely with Street expectations of $271.17 million. Non-GAAP profit per share registered at $0.07, surpassing the anticipated $0.06 by a cent.
Full fiscal year performance showed revenue reaching $1,001.3 million—marking 22% growth and representing the company’s inaugural crossing of the billion-dollar revenue mark.
Annual recurring revenue expanded 22% to $1,119.1 million as of the end of January. The fourth quarter contributed $64 million in net new ARR, establishing a new quarterly benchmark for the organization.
Throughout the period, SentinelOne secured a strategic collaboration with Cloudflare, representing one of the more significant partnership announcements from the company in recent months.
Yet despite these achievements, shares retreated approximately 4% during premarket sessions. The culprit: forward-looking projections.
Guidance Disappoints
SentinelOne issued Q1 fiscal 2027 revenue guidance ranging from $276 million to $278 million, which aligned with Wall Street forecasts. The full-year revenue outlook of $1.195 billion to $1.205 billion, however, sparked concern among market watchers.
Management also projected non-GAAP operating income between $110 million and $120 million for the complete year, demonstrating continued progress toward sustained profitability. This metric actually exceeded analyst expectations.
Scotiabank revised its price objective downward to $15 from $17, maintaining a Sector Perform rating. The financial institution characterized the Q4 performance as “solid” but expressed a preference to remain neutral on the stock.
Analysts at the firm noted that SentinelOne’s guidance suggests only marginal growth deceleration through fiscal 2027. They also highlighted the company’s track record of raising initial guidance in each of the previous three fiscal years—potentially indicating conservative forecasting this time around.
Analyst Views Split
Not all analysts share the cautious perspective. Cantor Fitzgerald maintained an Overweight rating with an $18 price objective, emphasizing operating margins and ARR performance that exceeded projections.
Needham also retained a Buy rating while adjusting its target to $18 from $21. The firm expressed concerns regarding the Q1 net new ARR capture rate embedded within management’s guidance.
Scotiabank’s primary concern extends beyond the financial metrics—it centers on strategic execution. The bank suggested that constraining investment expenditures might hamper revenue acceleration in future periods.
The firm additionally noted that its executive channel checks haven’t revealed substantial evidence of SentinelOne securing additional large-scale customer victories beyond the Cloudflare partnership.
At the time of Scotiabank’s research publication, shares were trading at $13.78, falling short of even the firm’s reduced $15 price target.
InvestingPro data indicates analyst projections of $0.19 earnings per share for fiscal 2027, which would represent the company’s inaugural year of full profitability. Current valuations suggest the stock trades at levels considered undervalued relative to these forecasts.
SentinelOne has demonstrated a pattern of upward guidance revisions across the previous three fiscal years, leading some analysts to speculate that current projections may contain built-in conservatism. Scotiabank, conversely, seeks tangible evidence of additional major contract wins before adopting a more optimistic stance on the security firm.
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