SentinelOne Inc (NYSE:S) stock fell 11.50% (As on December 5, 11:20:46 AM UTC-4, Source: Google Finance) after the company posted strong fiscal 2026 third-quarter but gave weak guidance and said Chief Financial Officer Barbara Larson will step down. The muted outlook underscores the challenges SentinelOne faces as it navigates an increasingly competitive cybersecurity market, where artificial intelligence tools are reshaping threat detection and endpoint protection. SentinelOne develops the AI-powered Singularity platform, which ingests and analyzes security data in real time, automates threat detection and response, and reduces manual work for security teams. The company is winning new logos and expanding existing accounts while empowering organizations to advance their digital transformations securely and intelligently.

Meanwhile, in the third quarter, annualized recurring revenue (ARR) increased 23% to $1,055.3 million as of October 31, 2025. Customers with ARR of $100,000 or more grew 20% to 1,572 as of October 31, 2025. Non-GAAP gross margin was 79%, compared to 80%. Non-GAAP operating margin was 7%, compared to (5)%. Non-GAAP net income margin was 10%, compared to 0%. Operating cash flow margin was 8%, compared to (3)%. Free cash flow margin was 6%, compared to (6)%. Trailing-twelve month operating cash flow margin was 7%, compared to 4%. Trailing-twelve month free cash flow margin was 5%, compared to 1%. Cash, cash equivalents, and investments were $873.6 million as of October 31, 2025.

S in the third quarter of FY25 has reported the adjusted earnings per share of 7 cents, beating the analysts’ estimates for the adjusted earnings per share of 5 cents. The company had reported the adjusted revenue growth of 23 percent to $258.9 million in the third quarter of FY25, beating the analysts’ estimates for revenue of $256.16 million.

For its fiscal fourth quarter, SentinelOne said it expects revenue of $271 million and for the full year the company expects revenue to be $1.01 billion. The fourth quarter outlook fell short of the $273.5 million expected by analysts. For fiscal 2026, the company expects Non-GAAP gross margin to be 78.5% and Non-GAAP operating margin to be 3%.

The company also announced that CFO Barbara Larson will leave in mid-January to pursue an opportunity outside the cybersecurity industry. Larson, who helped guide SentinelOne to positive results, will be succeeded on an interim basis by Chief Growth Officer Barry Padgett, a former SAP and Stripe executive, while the company searches for a permanent replacement.