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On Thursday, BTIG analyst Gray Powell revised the price target for SentinelOne Inc (NYSE:S) to $21.00, down from the previous $27.00, while continuing to endorse the stock with a Buy rating. According to InvestingPro data, 22 analysts have recently revised their earnings expectations downward, with current price targets ranging from $17 to $36. The adjustment follows SentinelOne’s first fiscal quarter earnings for April, which fell short of expectations. The company’s Annual Recurring Revenue (ARR) showed signs of weakness, attributed to a slowdown in April due to macroeconomic uncertainties. SentinelOne reported an ARR of $948.1 million, a year-over-year increase of 24.4%, which was slightly below the anticipated $953 million and the consensus estimate of $952 million.
SentinelOne’s net additions for the quarter were $28.0 million, inclusive of a foreseen $5 million impact from Deception technology, which was less than the $32.1 million projected by analysts. Additionally, the cybersecurity firm has scaled back its full-year revenue forecast to a midpoint of $998.5 million, reflecting a 21.5% growth, which is a 1% decrease from the previously forecasted $1,009.5 million. Despite current challenges, InvestingPro data shows the company maintains strong financial health with a current ratio of 1.74 and minimal debt, holding more cash than debt on its balance sheet.
Despite the lower-than-expected figures, SentinelOne’s management highlighted that business trends had stabilized by May and projected significantly improved sequential growth for the second fiscal quarter of 2026 compared to previous years. The company is also seeing positive momentum with new products such as Data and Purple AI.
The analyst noted that while investor sentiment toward SentinelOne was relatively negative before the earnings report, and the first-quarter ARR miss and revenue outlook reduction are setbacks, another downward revision in guidance within the year is considered unlikely. Powell emphasized SentinelOne’s importance as a strategic asset and expressed confidence that the company should maintain a growth rate of over 20% for this year and the next. With the stock trading at just over four times its estimated CY26E EV/sales after market close, and currently trading below InvestingPro’s Fair Value, the analyst believes that SentinelOne presents an attractive risk-reward proposition despite the reduced price target. For deeper insights into SentinelOne’s valuation and growth prospects, including exclusive financial health scores and detailed analysis, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, SentinelOne reported its first-quarter earnings for fiscal year 2026, with revenue reaching $229.0 million, a 23% increase year-over-year, slightly surpassing the consensus estimate of $228.2 million. The company’s annual recurring revenue (ARR) was $948.1 million, just below the expected $952.3 million. Despite these results, SentinelOne’s stock faced a downgrade from Wells Fargo (NYSE:WFC), which lowered its rating from ’Overweight’ to ’Equal Weight’ and reduced the price target to $18, citing a disappointing first quarter and a predicted 16% decline in net new ARR. In contrast, Citizens JMP maintained its Market Outperform rating with a $29 target, and Stephens initiated coverage with an Overweight rating and a $25 target, reflecting confidence in the company’s growth potential.
Additionally, SentinelOne launched its Global PartnerOne Program, aimed at enhancing partners’ go-to-market strategies through tailored tracks for different partner types. This initiative seeks to foster a collaborative ecosystem and accelerate growth in the competitive cybersecurity market. Stifel analysts also maintained their Overweight rating with a $24 price target, highlighting SentinelOne’s resilience in economic challenges and its role in the essential cybersecurity sector. These developments underscore the mixed analyst outlook and strategic initiatives shaping SentinelOne’s market position.
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