Why This Cybersecurity Stock Tumbled On Earnings Report, Outlook.

 SentinelOne reported fourth-quarter earnings that topped Wall Street estimates while revenue edged by views. The cybersecurity firm's fiscal first-quarter 2026 revenue guidance came in well below expectations. SentinelOne stock tumbled on the news.

On the stock market today, SentinelOne stock tumbled 13.7% to 16.65 in early trading.

The cybersecurity firm told analysts that it plans to stop selling its "Deception" products that came from its 2022 acquisition of Attivo Networks.

SentinelOne Earnings Report

"The stock looks to open significantly lower, likely reflecting fiscal 2026 guidance set below expectations largely due to the company sunsetting its deception offering and the fiscal year being more back-end loaded than expected," said William Blair analyst Jonathan Ho, in a report.

He added: "Management indicated benefits from the CrowdStrike-induced outage are more gradual as multiyear contracts expire rather than an immediate uptick in new business, further tempering investor expectations."

SentinelOne's rivals include CrowdStrike Holdings, Microsoft and Palo Alto Networks.

The company reported SentinelOne earnings for the January-ended quarter after the market close on Wednesday.

On an adjusted basis, SentinelOne earnings were 4 cents per share vs. a 2-cent loss a year earlier. The Mountain View, Calif.-based cybersecurity company posted revenue of $225.5 million, up 29%. SentinelOne stock analysts predicted revenue of $222.2 million and earnings per share of 1 cent.

SentinelOne Stock: Key Metric

Meanwhile,SentinelOne said annualized recurring revenue from subscription-based products and services increased 27% to $920.1 million, just below estimates of $921 million.

For the current quarter ending in April, SentinelOne predicted revenue of $228 million at the midpoint of guidance, missing estimates of $235.4 million. The company forecast revenue in a range of $1.007 billion to $1.012 billion, below estimates of $1.028 billion.

 

"Positively, management spoke to improving enterprise traction and a strong pipeline of enterprise deals, improving win rates, and platform momentum," said UBS analyst Roger Boyd in a report.  The fiscal 2026 outlook for mid-single-digit adjusted net new ARR growth suggests less upside from the perceived tailwinds around competitive displacements and Lenovo partnership upside more likely in fiscal 2027."

In 2025, SentinelOne stock had retreated about 13%. The company's software detects malware on laptops, mobile phones and other "endpoints" that access corporate networks. Also, it's building a broad threat-detection cybersecurity platform.

SentinelOne stock owns a Relative Strength Rating of 22 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.