SentinelOne shares fall after earnings as outlook overshadows strong quarter

SentinelOne expects fiscal second-quarter revenue of $197 million, which FactSet said is roughly in line with analyst estimates of $197.4 million. For the full year, it expects revenue of $808 million to $815 million, compared with an earlier call of $812 million to $818 million, while analysts were estimating $814.9 million.

“Both our quarterly and full-year forecasts indicate significant YoY improvement, reflecting the growing scale and efficiency of our operations,” the company wrote in a letter to shareholders. “We are investing in key areas of competitive advantage, especially data, artificial intelligence, cloud and, as always, endpoints.”

The guidance withdrawal did not alarm William Blair analysts, led by Jonathan Ho, who rate Outperform shares. The team calls the forecast “cautious and conservative,” pointing to macroeconomic uncertainty and operational change under the new chief revenue officer.

Guggenheim analysts led by John DiFucci were less optimistic, lowering their price target to $23 from $32, but maintaining a Buy rating.

“Bottom line, we don’t see much room for positive change in the new revision to full-year revenue forecasts and see potential risks to the numbers in the second half of the year,” they wrote. “This setup is similar to what was to come
in F1Q25.”

Quarterly results were brighter. For the fiscal first quarter ended April 30, SentinelOne reported a loss of 23 cents per share, significantly narrower than the loss of 37 cents reported in the same quarter last year.

Revenues of $186.4 million topped the consensus call of $181.1 million, according to FactSet. A year ago, the company had revenue of $133.4 million.

“We achieved a remarkable 40% revenue growth and our first-ever quarter of positive free cash flow, representing a significant milestone in our growth journey,” CEO Tomer Weingarten said in the earnings release.

Write to Emily Dattilo at [email protected]