SentinelOne Stock Price Drops Even As Growth Re-Accelerates

The cybersecurity vendor is seeing a ‘re-acceleration of new business growth,’ CFO Barbara Larson said, and raised its guidance for its full current fiscal year.

SentinelOne raised its guidance for its full current fiscal year Wednesday, as top executives at the cybersecurity vendor said the company is seeing a re-acceleration in new annual recurring revenue (ARR).

The company disclosed the updates as part of the financial report for the third quarter of its fiscal 2025, ended Oct. 31, with executives saying segments across the company’s Singularity platform are finding strong demand from partners and customers.

Net-new ARR rose by 4 percent from the same period a year ago, SentinelOne CFO Barbara Larson said during the vendor’s quarterly call with analysts Wednesday.

“This re-acceleration of new business growth marks a return to positive growth and demonstrates that we are well-positioned to deliver stronger net new ARR growth in the second half of the year, compared to the first half,” Larson said.

SentinelOne also raised its guidance for revenue growth in its full fiscal 2025 to 32 percent, from prior guidance of 31-percent growth. Total revenue for the vendor’s third fiscal quarter came in just above analyst expectations by reaching $210.6 million, an increase of 28.6 percent year-over-year.

However, the company’s GAAP net loss — of 25 cents a share — was wider than the 20 cents a share anticipated by the Wall Street consensus estimate.

SentinelOne’s stock price fell in after-hours trading following the financial report, dropping 13.9 percent to $24.69 a share.

In comments during the quarterly call, SentinelOne Co-founder and CEO Tomer Weingarten pointed to what he called strong growth in both the vendor’s core endpoint security segment and in emerging categories such as cloud and AI security.

“Our endpoint growth actually accelerated in Q3,” Weingarten said. “So it really indicates the opportunity is improving — not only across our growth lever with emerging products, but really within our core market of endpoint.”

The interest from MSSPs and other partner types is also robust, which SentinelOne has been bolstering with investments into channel initiatives, according to Weingarten.

For instance, “we have expanded our MSSP team just this past quarter in a pretty significant way,” he said.

Of the emerging products in SentinelOne’s portfolio, the company’s data lake technology and Purple AI security operations assistant are the “best fit” for MSSPs, Weingarten noted.

“We’re making sure that we have the best fit possible in these markets, and then we'll continue and enable these partners to succeed,” he said.