SentinelOne Stock Is Falling Thursday: What's Going On?

SentinelOne, Inc. (NYSE:S) shares are trading lower on Thursday. The company reported first-quarter financial results and issued guidance on Wednesday after the market closed.

The Details: SentinelOne reported adjusted earnings per share of 2 cents, in line with the consensus estimate. The cybersecurity company reported sales of $229.03 million, beating the consensus estimate of $228.35 million, and representing a 23% year-over-year gain.

SentinelOne said Annualized Recurring Revenue (ARR) increased 24% year-over-year to $948.1 million. Additionally, the company reported that customers with ARR of $100,000 or more grew 22% to 1,459.

Outlook: The company sees second-quarter sales of $242 million versus the consensus estimate of $244.88 million. SentinelOne also lowered its full-year forecast, now expecting 2026 fiscal-year sales of $996 million to $1 billion, versus the consensus estimate of $1.01 billion. The lowered guidance appears to be weighing on the stock.

Analyst Changes: Following the earnings report, multiple analysts made price target adjustments.

• Bernstein analyst Peter Weed maintained an Outperform rating on SentinelOne and lowered the price target from $27 to $25.
• Wells Fargo analyst Andrew Nowinski downgraded SentinelOne from an Overweight rating to an Equal-Weight rating and lowered the price target from $22 to $18.
• JPMorgan analyst Brian Essex downgraded SentinelOne from an Overweight rating to a Neutral rating and lowered the price target from $22 to $19.
• WestPark Capital analyst Casey Ryan maintained a Buy rating on SentinelOne and lowered the price target from $31 to $25.

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S Price Action: At the time of writing, SentinelOne shares are down 10.5% to $17.61, according to data from Benzinga Pro.

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