SentinelOne Shares Fall on Weak Guidance, Competition

SentinelOne reported a 23% year-over-year revenue increase to $229 million in its first quarter of fiscal 2026, with adjusted EPS meeting analyst estimates at $0.02. Despite profitability improvements, including a 20% free cash flow margin and a non-GAAP operating margin of -2%, shares dropped over 12% on disappointing revenue guidance of $996 million to $1 billion for the year—below both analyst and prior company expectations. The company announced a $200 million share buyback program but faces intensified competition from larger rivals such as CrowdStrike and Palo Alto Networks, as well as greater exposure to budget-tight small- and mid-sized businesses. Analyst reactions were mixed: BofA Securities downgraded the stock, while TD Cowen maintained a buy rating but reduced price targets, citing ongoing macroeconomic uncertainty. SentinelOne continues to innovate and grow its customer base, but investor confidence now depends on the company’s ability to reaccelerate growth and meet profitability goals. The company posted a wider net loss, impacted by tax expense and restructuring costs.