SentinelOne (S) Stock Forecast & Price Target

SentinelOne demonstrated robust financial performance with a 27% year-over-year growth in Annual Recurring Revenue (ARR), reaching $920.1 million, despite slightly missing the Street's forecast. Revenue increased by 29% year-over-year, totaling $225.5 million, which exceeded consensus expectations, indicating strong operational execution. The company's strategic focus on emerging solutions, particularly in Cloud, SIEM, and AI, contributed to over 50% of new bookings in FY25, suggesting a positive trend toward growth in key sectors of the cybersecurity market.

SentinelOne has experienced stagnation in its Net New Annual Recurring Revenue (ARR), showing flat year-over-year growth and lower-than-expected figures in its most recent quarter. The company’s guidance for fiscal year 2026 was below market expectations, stemming in part from a softening macroeconomic environment that may hinder deal closures and contribute to declining conversion rates. Additionally, projections indicate that SentinelOne will need to achieve higher-than-forecast growth in new business while facing potential drops in gross retention rates, further complicating its financial outlook.