SentinelOne shares drop after weaker than expected revenue guidance

Shares in SentinelOne Inc. were down over 12% in late trading today after the cybersecurity company forecasted first-quarter and full-year revenue below analyst expectations, despite reporting beats on revenue and earnings in its fiscal 2025 fourth quarter.

For the quarter that ended on Jan. 31, SentinelOne reported adjusted earning per share of 4 cents, up from a lack of two cents per share in the identical quarter of the previous yr, on revenue of $225.5 million, up 29% year-over-year. Each figures got here in ahead of the one cent per share and revenue of $222.24 million expected by analysts.

As of the top of the quarter, SentinelOne had annualized recurring revenue of $920.1 million, up 27% year-over-year, with customers with annualized recurring revenue of $100,000 or more growing 25% to 1,411. The corporate also now has over 14,000 direct customers worldwide.

Business highlights within the quarter included SentinelOne’s continued expansion of its artificial intelligence-driven security capabilities, including the launch of Purple AI, an automation tool that enhances security workflows and broadens its cybersecurity use cases. The corporate also introduced Singularity Data Lake, a centralized platform for security data evaluation and threat hunting, reinforcing its give attention to advanced threat detection.

SentinelOne strengthened its cloud security offerings with recent cloud-native security solutions designed to guard infrastructure and workloads, further diversifying its product portfolio. Moreover, the corporate announced a strategic partnership with Lenovo Group Ltd., which can deliver as much as 30 million endpoints over the approaching years and expand its market presence.

For the complete fiscal yr 2025, SentinelOne reported adjusted earnings per share of 5 cents, up from a lack of 28 cents per share in fiscal yr 2024, on revenue of $821.5 million, up 32% year-over-year.

“Our strong finish to the fiscal yr reflects solid execution and the accelerating adoption of our platform solutions,” said Tomer Weingarten, chief executive officer of SentinelOne, in the corporate’s earnings release. “For greater than a decade, we’ve patented leading machine learning security models — now, we’re pioneering fully autonomous, agentic AI workflows. We’re solidifying Singularity because the preeminent AI security platform of the longer term.”

For its fiscal 2026 first quarter, SentinelOne said that it expected revenue of $228 and for the complete yr, revenue of $1.007 billion to $1.012 billion. Each figures fell in need of the $235.1 million and $1.03 billion expected by analysts.

The shortfall was noted by Reuters to be as a result of SentinelOne being “hurt by tough competition and softer enterprise spending as a result of economic uncertainty.”

Photo: SentinelOne

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