Bernstein analyst Peter Weed has adjusted the price target for SentinelOne (S, Financial), decreasing it from $27 to $25 while maintaining an Outperform rating on the stock. The adjustment follows SentinelOne's Q1 earnings, which were adversely affected by broader economic weakness in April. This resulted in deal delays and a guidance performance that barely surpassed last year's quarterly results, which had seen beats of 1-3%. Bernstein's assessment was in line with its analysis and expectations for the quarter. Despite these challenges, the analyst continues to see potential in the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 34 analysts, the average target price for SentinelOne Inc (S, Financial) is $23.57 with a high estimate of $36.00 and a low estimate of $15.00. The average target implies an upside of 19.82% from the current price of $19.67. More detailed estimate data can be found on the SentinelOne Inc (S) Forecast page.
Based on the consensus recommendation from 38 brokerage firms, SentinelOne Inc's (S, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SentinelOne Inc (S, Financial) in one year is $36.81, suggesting a upside of 87.14% from the current price of $19.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SentinelOne Inc (S) Summary page.
S Key Business Developments
Release Date: May 28, 2025
- Revenue: $229 million, a growth of 23% year-over-year.
- International Revenue Growth: 27%, representing 38% of quarterly revenue.
- Total ARR: $948 million, a growth of 24% year-over-year.
- Customers with ARR of $100,000 or more: Grew 22% to 1,459.
- Gross Margin: 79%.
- Operating Margin: Expanded over 4 percentage points year-over-year to negative 2%.
- Free Cash Flow Margin: Record 20% for the quarter.
- Q2 Revenue Guidance: Approximately $242 million, growth of 22%.
- Full Year Revenue Guidance: $996 million to $1.1 billion, representing 22% growth.
- Q2 Gross Margin Guidance: Approximately 79%.
- Full Year Gross Margin Guidance: Between 78.5% and 79.5%.
- Q2 Operating Margin Guidance: Breakeven, implying a year-over-year improvement of approximately 300 basis points.
- Full Year Operating Margin Guidance: Between positive 3% and 4%, an improvement of over 650 basis points at the midpoint compared to fiscal year '25.
- Share Repurchase Authorization: $200 million open-ended.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SentinelOne Inc (S, Financial) exceeded revenue growth expectations with a 23% increase and achieved a record free cash flow margin of 20%.
- The company expanded its customer base and drove platform adoption across AI, cloud, data, and endpoint, with Purple AI achieving triple-digit year-over-year growth in quarterly bookings.
- SentinelOne Inc (S) introduced a unified cloud security suite, enhancing real-time defense and operations, which gained strong traction among cloud security opportunities.
- The company's data solutions surpassed $100 million in ARR, highlighting the momentum of its AI SIEM offering and increasing preference for its modern AI-driven cloud-native data solution.
- SentinelOne Inc (S) achieved FedRAMP high authorization for multiple solutions, including Purple AI, marking it as the first cybersecurity agentic AI solution approved for US government organizations.
Negative Points
- The company observed elongated sales cycles due to macroeconomic uncertainty, impacting Q1 net new ARR.
- SentinelOne Inc (S) took a more measured stance on full-year growth assumptions due to potential macro volatility.
- Despite strong demand, the company experienced slip deals in Q1, attributed to macro volatility rather than competitive pressures.
- The guidance for the full fiscal year 2026 was slightly reduced, reflecting a decrease in internal expectations around net new ARR.
- The company noted that the federal sector faced longer sales cycles and more approval requirements, affecting deal timelines.
