Cybersecurity firm SentinelOne (S) has experienced a series of analyst downgrades following a revised revenue outlook and challenges in its Annual Recurring Revenue (ARR) growth. Despite advancements in AI-driven cybersecurity solutions, investor sentiment is tempered by macroeconomic headwinds and competitive pressures, leading to a bearish near-term outlook.

Introduction

SentinelOne (S), a prominent player in the artificial intelligence-driven cybersecurity market, has faced downward revisions from several prominent analyst firms, leading to a notable decline in its stock performance. The primary catalyst for these downgrades stems from a weaker-than-anticipated revenue outlook and a deceleration in net new Annual Recurring Revenue (NNARR), tempering investor enthusiasm despite the company's strategic focus on AI innovation.

Analyst Downgrades and Revised Outlook

Recently, BTIG, Wells Fargo, and Bank of America have downgraded SentinelOne shares, citing concerns over its growth trajectory. BTIG moved its rating to Neutral from Buy in August 2025, referencing