Microvast Holdings announces departure of chief financial officer
On Thursday, Cantor Fitzgerald reaffirmed its positive stance on SentinelOne Inc (NYSE:S) shares, maintaining an Overweight rating and a $24.00 price target. According to InvestingPro data, the company maintains a FAIR financial health score of 2.33 and holds more cash than debt on its balance sheet. The cybersecurity firm reported earnings for the first quarter of 2026, which revealed mixed results. While SentinelOne achieved a slight revenue beat, it fell short of FactSet consensus expectations on net new annual recurring revenue (NNARR) and billings. Additionally, the company has adjusted its revenue forecast for fiscal year 2026 downward, attributing the revision to general economic uncertainty and delays in closing deals in April.
The company’s performance in the large-deal segment indicates growing interest in its broader platform offerings, supported by impressive revenue growth of 32.25% and a strong gross profit margin of 74.3%. However, the overall weakness observed in the earnings report is indicative of challenges within the endpoint detection and response (EDR) sector and for emerging products. Despite these hurdles, Cantor Fitzgerald’s analyst expressed optimism about the company’s prospects. The firm anticipates a recovery in NNARR during the second quarter and foresees consistent margin progression and robust free cash flow (FCF) throughout the fiscal year, which should provide a degree of financial stability for SentinelOne. Get deeper insights into SentinelOne’s financial health with a comprehensive Pro Research Report, available exclusively on InvestingPro.
The analyst’s commentary highlighted the expectation of a turnaround in the next quarter, based on the management’s outlook. "Based on management commentary, we expect NNARR to rebound in Q2, with steady margin improvement and healthy FCF providing stability through FY26," said the analyst from Cantor Fitzgerald. The firm’s confidence in the company’s ability to navigate the current market conditions is reflected in the reiterated price target and rating.
SentinelOne’s recent earnings announcement and the subsequent guidance update have set the stage for the company’s financial journey in the coming months. The stock has experienced a significant 29.62% decline over the past six months, though InvestingPro analysis suggests the stock is currently undervalued. With the anticipation of improved performance metrics and financial health, SentinelOne is expected to focus on leveraging its large-deal momentum and addressing the pressures faced in its market segments. The company’s strategy and execution in the face of these challenges will be closely watched by investors and industry observers alike, particularly as analysts predict profitability this year despite current headwinds.
In other recent news, SentinelOne Inc reported its first-quarter earnings for fiscal year 2026, showing a revenue of $229 million, which marks a 23% increase year-over-year and slightly surpasses the consensus estimate of $228.2 million. However, the company’s Annual Recurring Revenue (ARR) of $948.1 million fell short of the anticipated $953 million. The company also adjusted its full-year revenue forecast to a midpoint of $998.5 million, reflecting a 21.5% growth, down from the previous forecast of $1,009.5 million. Analysts from JPMorgan downgraded SentinelOne’s stock from Overweight to Neutral, citing growth concerns and a third ARR miss in five quarters. DA Davidson also lowered its price target to $17, maintaining a Neutral rating, while Scotiabank (TSX:BNS) adjusted its target to $18, keeping a Sector Perform rating. Meanwhile, BTIG reduced its price target to $21 but maintained a Buy rating, expressing confidence in SentinelOne’s strategic importance and potential for over 20% growth. Citizens JMP maintained its Market Outperform rating with a $29 price target, emphasizing the company’s operational efficiency and strong free cash flow performance. Despite these mixed analyst views, SentinelOne continues to focus on growth in segments like Cloud, AI, and Data, with international revenue seeing a 27% year-over-year increase.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.