Key Takeaways
- Q4 FY2026 revenue reached $271.2M, reflecting a 20% year-over-year increase and meeting market expectations.
- Full-year revenue surpassed $1 billion for the first time in company history, while ARR expanded 22% to $1.119B.
- The company achieved a record Q4 net new ARR of $64M and delivered non-GAAP EPS of $0.07, surpassing the $0.06 forecast.
- Forward-looking revenue projections for FY2027 of $1.195B–$1.205B and Q1 estimates of $276M–$278M fell short of investor expectations.
- Analysts at Scotiabank reduced their price target to $15 from $17, expressing concerns over constrained investment and limited evidence of significant new client acquisitions.
Shares of SentinelOne (S) faced pressure following the release of fiscal fourth-quarter results that, while strong operationally, featured conservative future projections.
The enterprise security platform reported quarterly revenue of $271.2 million for Q4 fiscal 2026, marking a 20% year-over-year improvement. This figure aligned nearly perfectly with analyst expectations of $271.17 million. On the bottom line, non-GAAP earnings per share reached $0.07, topping consensus estimates by a cent.
For the complete fiscal year, total revenue climbed to $1,001.3 million — representing 22% growth and marking the company’s inaugural year exceeding the billion-dollar revenue mark.
Annual recurring revenue expanded 22% to reach $1,119.1 million at the end of January. The company added $64 million in net new ARR during Q4, establishing a new quarterly record.
The period also saw SentinelOne announce a strategic collaboration with Cloudflare, representing one of the more substantial customer agreements disclosed by the company in recent months.
Nevertheless, shares declined approximately 4% during pre-market hours. The culprit: future expectations.
Forward Projections Fall Flat
SentinelOne provided Q1 fiscal 2027 revenue projections of $276 million to $278 million, which essentially matched consensus expectations. The full-year revenue outlook of $1.195 billion to $1.205 billion, however, sparked concern among market participants.
Management also forecasted non-GAAP operating income between $110 million and $120 million for the complete year, demonstrating continued progress toward sustained profitability. Notably, this projection exceeds analyst consensus figures.
Scotiabank revised its price objective downward to $15 from $17 while maintaining a Sector Perform rating. The institution characterized the quarterly performance as “solid” but indicated it remains cautious on the equity.
The investment bank noted that SentinelOne’s outlook suggests limited growth deceleration through fiscal 2027. They also observed that management has historically increased initial guidance in each of the previous three fiscal years — potentially indicating the current forecast may be deliberately conservative.
Wall Street Remains Divided
Not all analysts share a pessimistic view. Cantor Fitzgerald maintained an Overweight recommendation with an $18 price objective, highlighting operating margin performance and ARR results that exceeded projections.
Needham similarly retained a Buy rating while adjusting its target downward from $21 to $18. The firm expressed concerns regarding the Q1 net new ARR capture rate embedded within management’s guidance.
Scotiabank’s primary apprehension extends beyond the reported figures — it centers on strategic direction. The bank suggested that restricting investment expenditures could constrain future revenue expansion potential.
The firm additionally noted it has not identified substantial evidence, through conversations with industry executives, that SentinelOne is securing additional large enterprise customers beyond the Cloudflare partnership.
At the time Scotiabank issued its analysis, shares were trading at $13.78, below the firm’s already-reduced $15 price target.
InvestingPro data indicates analyst projections of $0.19 earnings per share for fiscal 2027, which would represent the company’s initial full-year profitable performance. Current valuations suggest the stock may be undervalued relative to these earnings expectations.
SentinelOne has demonstrated a pattern of raising guidance throughout the fiscal year over the past three years, which certain analysts interpret as an indication that current projections may be deliberately understated. Scotiabank, however, is waiting for tangible evidence of additional major customer wins before adopting a more optimistic stance on the stock.
