SentinelOne Stock Slips As Lackluster Guidance Takes Sheen Off Solid Q4 Print: Retail Mood Hits Rock Bottom

SentinelOne, Inc. (S) shares slid early Thursday after the cybersecurity vendor issued lackluster revenue guidance for the current quarter and the year. However, the quarterly results exceeded forecasts, with key operational metrics showing healthy growth.

The Mountain View, California-based company swung to a profit on a non-GAAP basis and reported revenue growth of 29% for the fourth quarter of the fiscal year 2025. The revenue growth accelerated from the 28% growth in the third quarter

The key metrics panned out as follows:

• Adjusted bottom-line results: profit of $0.04 per share Vs. loss of $0.02 per share a year ago; Finchat-compiled consensus $0.01
• Revenue: $225.52 million Vs. year-ago’s $174.18 million; consensus $222.33 million

The revenue exceeded SentinelOne’s guidance of $222 million.

Among key performance metrics, the annualized recurring revenue was at $920.1 million as of Jan. 31, up 27% YoY. Customers with ARR of $100,000 or more climbed 25% to 1,411 as of Jan. 31, 2025.

The non-GAAP gross margin was 79%, in line with the guidance, and non-GAAP operating margin was 1%, ahead of the guidance for a negative 1%.

CEO Tomer Weingarten said, “Our strong finish to the fiscal year reflects solid execution and the accelerating adoption of our platform solutions.”

He noted that the company is on track to surpass $1 billion in ARR and revenue in the new fiscal year.

CFO Barbara Larson said the company is focused on driving sustainable growth and improving margins in the fiscal year 2026 and beyond.

The company guided to a revenue of $228 million for the first quarter and $1.007 billion to $1.012 billion for the full year.

Analysts, on average, estimate the metrics at $228.97 million and $1.012 billion, respectively.

SentinelOne expects a non-GAAP operating margin of 79% for the first quarter and 78.5%-79.5% for the fiscal year 2026. It models non-GAAP gross margin of a negative 2% for the quarter and a positive 3-4% for the year.

On Stocktwits, retail sentiment toward the stock turned to ‘extremely bearish’ (2/100), and the message volume remained ‘extremely’ high.’

A bearish watcher dismissed the company as one with not much growth.

Another user warned of the stock dropping to single-digit levels as they fretted over insider selling.

SentinelOne stock fell over 4% to $18.50 in early trading, on top of the 13% drop seen this year.

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