Trump announces 100% chip tariff as Apple ups U.S. investment
On Thursday, KeyBanc maintained a Sector Weight rating on SentinelOne Inc (NYNYSE:SE: S), a cybersecurity company with a $6.2 billion market capitalization, following the company’s fourth-quarter results and future financial guidance. Analyst Eric Heath noted a minor shortfall in fourth-quarter Annual Recurring Revenue (ARR) by less than $1 million and a $16 million shortfall in the fiscal year 2026 ARR guidance. The FY26 projection includes a $10 million impact due to management’s decision to discontinue support for its Deception product. According to InvestingPro data, SentinelOne has demonstrated strong revenue growth of 34.4% over the last twelve months.
Despite the ARR miss for the fourth quarter, SentinelOne’s management remains optimistic, forecasting approximately 6% growth in Net New ARR (NNARR) for FY26. This outlook is more positive than the low single-digit percentage decline experienced in FY25 and contrasts with the average consensus of a 2% decline in NNARR for calendar year 2025 among security peers. While the company is not currently profitable, InvestingPro analysis indicates analysts expect profitability this year, with a forecasted EPS of $0.02. The company’s management cites pipeline coverage, an increase in trained sales representatives, improved sales productivity, and stable win rates as the foundation for their NNARR forecast.
KeyBanc’s analysis suggests that while recent qualitative feedback from channel partners has improved and SentinelOne’s stock is trading at a relatively low 5.0x enterprise value to revenue ratio, there is still caution regarding the expected NNARR increase for FY26. This caution stems from the ongoing challenging macroeconomic and competitive landscape that the company faces.
Following the review of the fourth-quarter results, KeyBanc has adjusted its FY26 estimates for SentinelOne, positioning them slightly below the company’s guidance. The firm’s stance reflects a conservative outlook on the company’s ability to achieve its NNARR growth targets in the upcoming fiscal year.
In other recent news, SentinelOne Inc has experienced multiple adjustments to its stock price targets following its latest financial disclosures. SentinelOne’s recent earnings report revealed mixed results, with a modest revenue beat but a miss on Free Cash Flow (FCF) and in-line Annual Recurring Revenue (ARR). The company’s guidance for fiscal year 2026 was notably below market expectations, leading Citi to lower its price target to $21 while maintaining a Neutral rating. Similarly, Needham adjusted its target to $23, retaining a Buy rating, citing the company’s 27% year-over-year growth in ARR but acknowledging missed consensus expectations for revenue guidance.
Scotiabank (TSX:BNS) also revised its price target to $19, maintaining a Sector Perform rating, pointing to a slight miss in net new ARR and modest growth projections as factors. Cantor Fitzgerald reduced its price target to $24, keeping an Overweight rating, noting that despite exceeding revenue and earnings per share estimates, SentinelOne fell short on gross margin and ARR expectations. BTIG lowered its target to $27 but upheld a Buy rating, emphasizing the company’s positive net new ARR growth and improving free cash flow profile. These recent developments highlight the varied analyst perspectives on SentinelOne’s financial outlook and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.