SentinelOne Shares Drop 12% as Q4 Revenue Forecast Disappoints Despite Q3 Beat

Font: Financial Modeling Prep  • Dec 05, 2025

SentinelOne, Inc. (NYSE: S) shares dropped more than 12% intra-day on Friday after the cybersecurity firm issued fourth-quarter revenue guidance below analyst estimates, overshadowing stronger-than-expected third-quarter results.

The company reported adjusted earnings of $0.07 per share, topping analyst expectations of $0.05. Revenue rose 23% year over year to $258.9 million, slightly above the consensus estimate of $256.16 million. Annualized recurring revenue also increased 23% to $1.06 billion.

However, investors focused on SentinelOne’s projection of $271 million in fourth-quarter revenue, short of the $273.5 million analysts had anticipated.

Despite the cautious outlook, SentinelOne posted several operational milestones, including an improved non-GAAP operating margin of 7%, compared with -5% a year earlier. Non-GAAP gross margin landed at 79%, just below last year’s 80%. The number of customers generating more than $100,000 in ARR increased 20% to 1,572.

The company also announced that CFO Barbara Larson would depart in mid-January 2026 to pursue an external opportunity. Chief Growth Officer Barry Padgett will serve as interim CFO.