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On Thursday, Cantor Fitzgerald adjusted its outlook on SentinelOne Inc (NYSE:S), reducing the cybersecurity company’s price target to $24 from the previous $30 while maintaining an Overweight rating. With the stock currently trading at $19.30, analyst targets range from $18 to $36, reflecting mixed sentiment in the market. The revision followed the company’s announcement of its fourth-quarter earnings for fiscal year 2025.
SentinelOne’s quarterly report exceeded FactSet consensus estimates in terms of revenue, operating income, and earnings per share (EPS). Despite surpassing these key financial metrics, the company did not meet expectations for gross margin, annual recurring revenue (ARR), and billings. The mixed results prompted the analyst at Cantor Fitzgerald to adjust the price target accordingly. According to InvestingPro data, the company maintains strong revenue growth of 34.4% and a healthy gross profit margin of 73.6%, though it remains unprofitable over the last twelve months.
In addition to the fourth-quarter performance, SentinelOne provided guidance for fiscal year 2026. The company anticipates approximately 23% growth in top-line revenue and projects about $200 million in net new annual recurring revenue (NNARR). Both figures fall short of the FactSet consensus estimates. The guidance also accounts for a $10 million headwind as SentinelOne plans to retire its Deception solution.
The analyst from Cantor Fitzgerald suggests that the company’s full-year guidance may be on the conservative side, especially considering SentinelOne’s track record. The company had outperformed the high-end of its initial revenue and gross margin guidance for fiscal year 2025. InvestingPro analysis indicates the company’s overall financial health score is "FAIR," with particularly strong metrics in growth potential. Subscribers can access 6 additional ProTips and comprehensive valuation metrics through the Pro Research Report.
SentinelOne’s performance and future projections are critical for investors as they assess the company’s market position and growth potential in the competitive cybersecurity sector. The revised price target from Cantor Fitzgerald reflects a recalibration of expectations in light of the company’s most recent financial outcomes and forward-looking statements. With analysts predicting profitability this year and the company holding more cash than debt, SentinelOne’s financial position appears stable despite recent market challenges.
In other recent news, SentinelOne Inc. reported its fourth-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.04 compared to the forecasted $0.01. The company achieved a 29% year-over-year revenue increase, reaching $226 million, slightly above the forecast of $222.24 million. Despite these positive results, the company’s stock fell in aftermarket trading. Analysts at BTIG, Raymond (NSE:RYMD) James, and Jefferies have all adjusted their price targets for SentinelOne, lowering them to $27, $25, and $25, respectively, while maintaining Buy or Strong Buy ratings. The company’s guidance for fiscal year 2026 projects a 22.9% revenue increase to $1,009.5 million, which falls short of broader market expectations. SentinelOne’s decision to discontinue its Deception product impacted its Annual Recurring Revenue (ARR) growth, but analysts remain optimistic about the company’s technological positioning and strategic opportunities, such as a partnership with Lenovo. New products outside of SentinelOne’s core offerings are gaining traction, contributing over 50% of last year’s bookings.
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