SentinelOne (S) Stock Drops 4% — Record Quarter Not Enough as Guidance Misses the Mark

TLDR

• SentinelOne reported Q4 FY2026 revenue of $271.2M, up 20% year over year, roughly in line with estimates.
• The company crossed $1 billion in full-year revenue for the first time, with ARR growing 22% to $1.119B.
• Q4 net new ARR of $64M set a company record, with non-GAAP EPS of $0.07, beating the $0.06 estimate.
• FY2027 revenue guidance of $1.195B–$1.205B and Q1 guidance of $276M–$278M disappointed investors.
• Scotiabank cut its price target from $17 to $15, citing concerns about limiting investment spending and a lack of evidence of major new customer wins.

SentinelOne (S) delivered a solid fourth quarter but the stock fell after the company’s forward guidance came in light.

The cybersecurity firm posted Q4 fiscal 2026 revenue of $271.2 million, up 20% year over year. That matched the Wall Street consensus of $271.17 million almost exactly. Non-GAAP earnings per share came in at $0.07, a penny above the $0.06 estimate.

For the full fiscal year, revenue hit $1,001.3 million — a 22% gain and the first time the company has crossed the $1 billion threshold.

Annual recurring revenue grew 22% to $1,119.1 million as of January 31. Net new ARR in Q4 was $64 million, which the company called a record for the quarter.

During the quarter, SentinelOne also announced a partnership win with Cloudflare, one of the larger customer deals the company has disclosed recently.

Despite all that, the stock dropped around 4% in premarket trading. The reason: guidance.

Guidance Disappoints

SentinelOne guided for Q1 fiscal 2027 revenue of $276 million to $278 million, roughly in line with consensus. Full-year revenue guidance of $1.195 billion to $1.205 billion was the number that raised eyebrows.

The company also projected non-GAAP operating income of $110 million to $120 million for the full year, as it continues to push toward profitability. That figure is actually above analyst consensus.

Scotiabank lowered its price target on the stock to $15 from $17, while keeping a Sector Perform rating. The bank called the Q4 results “solid” but said it’s staying on the sidelines.

The firm said SentinelOne’s guidance implies minimal growth deceleration in fiscal 2027. It also pointed out that the company has revised its initial guidance higher in each of the last three years — which could mean the current guide is conservative.

Analyst Views Split

Not everyone is bearish. Cantor Fitzgerald kept an Overweight rating with an $18 price target, pointing to operating margins and ARR that beat expectations.

Needham also kept a Buy rating but trimmed its target from $21 to $18. The firm flagged concerns around the Q1 net new ARR capture rate implied by the guidance.

Scotiabank’s main worry isn’t the numbers — it’s the strategy. The bank said that capping investment spending could limit revenue growth down the road.

The firm also said it hasn’t found evidence, through checks with executives, that SentinelOne is landing more large customer wins beyond the Cloudflare deal.

At the time of Scotiabank’s note, the stock was trading at $13.78, below even the bank’s reduced $15 target.

InvestingPro data shows analysts forecast earnings of $0.19 per share for fiscal 2027, which would mark the company’s first full-year profitability milestone. The stock is currently rated as undervalued relative to that forecast.

SentinelOne has consistently revised its guidance upward over the past three years, which some analysts see as a signal that the current outlook may be sandbagged. Scotiabank, however, wants proof of more deals before getting more constructive on the name.

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