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S: AI Security Partnerships And CFO Transition Will Shape Balanced Outlook

Regulatory And Open-Source Pressures Will Squeeze Margins Yet Spark Recovery

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AnalystLowTarget
Not Invested
Published 05 Aug 2025

Update shared on 20 Dec 2025

Fair value Decreased 16%
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AnalystLowTarget's Fair Value
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1Y
-34.3%
7D
-2.3%

Analysts have trimmed their price target on SentinelOne from 19.00 dollars to 16.00 dollars, reflecting slightly lower assumptions for long term growth, profitability and valuation multiples.

What's in the News

  • Chief Financial Officer Barbara Larson plans to resign in mid January 2026, with Chief Growth Officer Barry Padgett set to become interim CFO while the company searches for a permanent replacement (company filing, executive changes).
  • SentinelOne completed a share repurchase of 5,726,101 shares, or about 1.73% of shares outstanding, for a total of 101.89 million dollars under its May 2025 buyback program (company disclosure, buyback tranche update).
  • The company issued guidance for the fourth quarter of fiscal 2026, projecting revenue of 271 million dollars and for the full fiscal year, projecting revenue of 1.001 billion dollars (company guidance).
  • SentinelOne announced expanded integrations and AI native security capabilities with Amazon Web Services, including AWS Security Hub, Amazon CloudWatch, and new AI security offerings in AWS Marketplace (company announcements with AWS).
  • At its OneCon 2025 conference, SentinelOne unveiled new AI centric security products and services, including Prompt Security offerings, Observo AI data pipeline integrations, the Purple AI agentic analyst enhancements, and the Wayfinder managed detection and response suite (product and services announcements at OneCon 2025).

Valuation Changes

  • Fair Value Estimate reduced from 19.00 dollars to 16.00 dollars, a moderate downward revision reflecting updated growth and profitability expectations.
  • Discount Rate increased slightly from 8.40% to about 8.43%, implying a marginally higher required return on equity.
  • Revenue Growth Assumption trimmed from roughly 17.98% to about 17.57%, indicating a small reduction in long term top line expectations.
  • Net Profit Margin Assumption lowered from about 13.09% to roughly 12.75%, signaling a modestly more conservative view on long term profitability.
  • Future P/E Multiple cut from about 48.15x to around 38.32x, a significant reset of valuation expectations for the company’s earnings power.

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