SentinelOne (S) Stock Slides 4% Despite Record Q4 Performance on Weak Outlook

TLDR SentinelOne’s Q4 FY2026 revenue reached $271.2M, marking a 20% year-over-year increase and meeting analyst expectations. Full-year revenue surpassed $1 billion for the first time in company history, while ARR climbed 22% to $1.119B. The company achieved a quarterly record with $64M in net new ARR, alongside non-GAAP EPS of $0.07 that exceeded the $0.06 forecast. Forward-looking revenue projections for FY2027 of $1.195B–$1.205B and Q1 estimates of $276M–$278M failed to satisfy market expectations. Scotiabank reduced its price objective from $17 to $15, expressing worries about constrained investment strategy and insufficient proof of significant new client acquisitions. SentinelOne (S) shares declined despite posting impressive fourth-quarter results, as the company’s outlook for the coming year left investors wanting more. $S (SentinelOne) #earnings are out: pic.twitter.com/CwFPMtv60Y — The Earnings Correspondent (@earnings_guy) March 12, 2026 The cybersecurity company reported fourth-quarter fiscal 2026 revenue of $271.2 million, representing a 20% year-over-year increase. This figure aligned almost perfectly with Wall Street’s consensus estimate of $271.17 million. Non-GAAP earnings per share reached $0.07, surpassing the analyst consensus of $0.06 by a penny. For the complete fiscal year, revenue totaled $1,001.3 million — representing 22% growth and marking the company’s first-ever breach of the $1 billion revenue milestone. 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, which management characterized as a quarterly record. The quarter also brought news of a strategic partnership with Cloudflare, representing one of the more significant customer agreements the company has publicly announced in recent months. Nevertheless, shares fell approximately 4% during premarket hours. The culprit: forward-looking projections. Forward Outlook Falls Short SentinelOne provi...