Morgan Stanley Cautious on SentinelOne (S) Despite AI Growth, Revenue Beat Due to CFO Transition, Enterprise Sales Cycles

SentinelOne Inc. (NYSE:S) is one of the best low priced technology stocks to buy according to analysts. On December 5, Morgan Stanley lowered the firm’s price target on SentinelOne to $18 from $20 with an Equal Weight rating on the shares. The firm expressed optimism regarding the company’s $3 million revenue beat and the performance of its AI and cloud segments. However, Morgan Stanley remains cautious due to the upcoming CFO transition and management’s conservative outlook on longer deal cycles in the enterprise market.

On the same day, Wedbush also trimmed the firm’s price target on SentinelOne to $20 from $23 while keeping an Outperform rating on the shares. Despite delivering a top and bottom line beat in FQ3 2026, SentinelOne’s strong platform momentum is being masked by a softer-than-expected forecast. The firm suggested that the company’s prudent approach to the macro climate is resulting in a guidance range that fails to reflect its underlying demand.

Earlier on December 4, SentinelOne Inc. (NYSE:S) reported that it surpassed $1 billion in ARR for FQ3, reaching $1,055.3 million, which was a 23% increase year-over-year. Total revenue also grew by 23% to $258.9 million, up from $210.6 million in the previous year. For FQ4, the company projects revenue of $271 million, while for the full FY2026, total revenue is expected to reach around $1 billion.

SentinelOne Inc. (NYSE:S) operates as a cybersecurity provider in the US and internationally. The company’s Singularity Platform delivers an AI-powered autonomous threat prevention, detection, and response capabilities for protection against a spectrum of cyber threats.

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Disclosure: None. This article is originally published at Insider Monkey.