Rosenblatt reiterated a Buy rating and $20.00 price target on SentinelOne Inc (NYSE:S) following the company’s first-quarter fiscal 2027 results.
SentinelOne reported first-quarter fiscal 2027 results with annual recurring revenue and profitability exceeding expectations while revenue grew 21% year-over-year, landing essentially in line with guidance. The $6.13 billion market cap company maintains a strong gross profit margin of 73% and holds more cash than debt on its balance sheet, according to InvestingPro data. Total ARR increased 23% year-over-year and net new ARR rose 55% year-over-year, a new record, coming in ahead of expectations.
Operating margin reached 4.0%, up 550 basis points year-over-year, and pro forma earnings per share of $0.04 beat the $0.02 consensus estimate. The company announced an 8% workforce reduction and reiterated its fiscal 2027 revenue guidance of 20% growth with limited upside to estimates.
Rosenblatt noted the company’s new chief financial officer has been in the position for just 60 days. The firm views the guidance as appropriately prudent and believes the proactive realignment and reinvestment into AI security, data and cloud have overshadowed positive ARR and margin trends in the near term.
