TLDR
- SentinelOne’s Q4 FY2026 revenue reached $271.2M, representing a 20% year-over-year increase, meeting analyst expectations.
- The cybersecurity company achieved a milestone by surpassing $1 billion in annual revenue, while ARR climbed 22% to $1.119B.
- Record-breaking Q4 net new ARR of $64M was reported, with non-GAAP EPS of $0.07 surpassing the consensus estimate of $0.06.
- Forward-looking revenue projections for FY2027 ($1.195B–$1.205B) and Q1 ($276M–$278M) fell short of investor expectations.
- Scotiabank reduced its price objective from $17 to $15, expressing concerns about constrained investment spending and insufficient evidence of significant new client acquisitions.
SentinelOne (S) reported strong fourth-quarter results, yet shares declined as the company’s outlook for future periods failed to impress Wall Street.
The cybersecurity company announced Q4 fiscal 2026 revenue of $271.2 million, representing a 20% year-over-year increase. This figure aligned almost perfectly with the Wall Street consensus estimate of $271.17 million. Non-GAAP earnings per share reached $0.07, topping the analyst estimate of $0.06 by one cent.
For the complete fiscal year, revenue totaled $1,001.3 million — marking a 22% increase and representing the first time SentinelOne has exceeded the $1 billion revenue milestone.
Annual recurring revenue expanded 22% to reach $1,119.1 million as of January 31. The company added $64 million in net new ARR during Q4, establishing a new quarterly record.
The quarter also brought news of a strategic partnership with Cloudflare, representing one of the more significant customer agreements the company has publicly announced in recent months.
Yet despite these achievements, the stock fell approximately 4% in premarket trading. The culprit: forward guidance.
Guidance Disappoints
SentinelOne provided Q1 fiscal 2027 revenue guidance of $276 million to $278 million, which was essentially in line with analyst expectations. The full-year revenue projection of $1.195 billion to $1.205 billion was what caught investors’ attention negatively.
The company also forecast non-GAAP operating income between $110 million and $120 million for the full year, reflecting its ongoing march toward profitability. This metric actually exceeded what analysts had anticipated.
Scotiabank reduced its price target to $15 from $17, maintaining a Sector Perform rating. The firm characterized the Q4 performance as “solid” but indicated it’s adopting a wait-and-see approach.
The firm noted that SentinelOne’s outlook suggests only modest growth deceleration in fiscal 2027. It also highlighted that the company has increased its initial annual guidance in each of the previous three years — suggesting the current forecast might be deliberately conservative.
Analyst Views Split
Not all analysts share a pessimistic view. Cantor Fitzgerald maintained an Overweight rating with an $18 price target, highlighting operating margins and ARR results that exceeded forecasts.
Needham also retained a Buy rating but lowered its price target from $21 to $18. The firm raised questions about the Q1 net new ARR capture rate suggested by management’s guidance.
Scotiabank’s primary concern extends beyond the financial metrics — it’s focused on the company’s strategic direction. The bank expressed worry that limiting investment expenditures could constrain revenue expansion in future periods.
The firm also noted that its channel checks with industry executives haven’t revealed evidence of SentinelOne securing additional major customer wins beyond the Cloudflare partnership.
At the time Scotiabank published its analysis, shares were trading at $13.78, below even the firm’s reduced $15 price target.
InvestingPro data indicates analysts are projecting earnings of $0.19 per share for fiscal 2027, which would represent the company’s first full-year profitability achievement. The stock is currently assessed as undervalued based on that earnings forecast.
SentinelOne has a track record of raising its guidance throughout the past three years, which some analysts interpret as an indication that current projections may be conservatively understated. Scotiabank, however, is waiting for confirmation of additional major customer wins before adopting a more optimistic stance on the stock.
Remember: Preserve all tokens like [[EMBED_0]], [[IMG_0]], [[LINK_START_0]], [[LINK_END_0]], [[SCRIPT_0]], [[FIGURE_0]] etc. exactly as they appear. These are placeholders for embeds, images, and links that must not be changed.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
