While SentinelOne Inc's (NYSE:S) fiscal third-quarter results reflect "solid execution" by the company, the fourth-quarter outlook is impacted by "large seasonality," deal timing, and an uncertain macro backdrop, according to Needham.

The SentinelOne Analyst: Analyst Mike Cikos reiterated a Buy rating, while cutting the price target from $23 to $21.

The SentinelOne Thesis: The company's ARR came in at $1.055 billion, beating the consensus of $1.051 billion and accelerating to 23% year-on-year growth from 22% in the previous quarter, Cikos said in a note.

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Management indicated that "demand was broad-based and fueled by both New and Existing Customers embracing Platform Adoption across AI, Data, Cloud and Endpoint," he wrote.

Management guided to fourth-quarter revenues of $271 million, which came in around $2 million below the consensus estimate, the analyst stated.

He further states that management’s comment indicated:

• Public Sector performed in line with expectations despite the U.S. government shutdown
• Expectations for sequential growth to Net-New ARR

S Price Action: SentinelOne shares were down 12.35% at $14.87 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

SentinelOne’s market cap of $4.99 billion positions it as a notable player in the highly competitive information technology sector, particularly within the software industry.

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