SentinelOne Plunges 10.32% on Weak Guidance, Wells Fargo Downgrade

On May 29, 2025, SentinelOne's stock experienced a significant drop of 10.32% in pre-market trading, marking a notable decline in its share price.

SentinelOne's recent financial performance has been a mix of positive and negative news. The company reported Q1 2026 earnings and revenue that met Wall Street estimates, indicating strong financial health. However, the company's guidance for the future fell short of expectations, leading to a decline in its stock price. This guidance update was particularly concerning for investors, as it suggested potential challenges ahead for the cybersecurity firm.

Adding to the market's concerns, Wells Fargo downgraded SentinelOne's stock rating from 'Overweight' to 'Equal Weight,' reflecting a more cautious outlook on the company's future performance. This downgrade, coupled with the weak guidance, has contributed to the recent decline in SentinelOne's stock price.

Despite these short-term setbacks, SentinelOne's strong financial performance in the first quarter of 2026, including a 24% year-over-year growth in annualized recurring revenue, highlights the company's resilience and potential for long-term growth. Investors will be closely monitoring SentinelOne's future performance and guidance updates to gauge the company's ability to navigate the challenges ahead.