SentinelOne (NYSE:S) saw its shares tumble over 4% intra-day today after issuing a weaker-than-expected revenue forecast, overshadowing an otherwise strong quarter of growth.

The cybersecurity firm reported a 29% increase in fourth-quarter revenue, reaching $225.5 million, which exceeded analyst estimates of $222.24 million. Additionally, adjusted earnings per share came in at $0.04, outperforming expectations of $0.01.

Annualized recurring revenue (ARR) continued its upward trajectory, climbing 27% year-over-year to $920.1 million as of January 31. SentinelOne also saw growth in high-value customers, with the number of clients generating at least $100,000 in ARR rising 25% to 1,411.

Despite these positive figures, investors reacted negatively to subdued revenue projections for the upcoming quarters. The company’s first-quarter revenue forecast of $228 million fell short of Wall Street’s expectation of $235.5 million. Similarly, full-year revenue guidance of $1.007 billion to $1.012 billion lagged behind the anticipated $1.03 billion.

CEO Barbara Larson emphasized the company’s commitment to sustainable growth and margin improvement in fiscal 2026 and beyond, suggesting a strategic focus on profitability amid evolving market conditions.

While SentinelOne continues to expand its customer base and revenue streams, investor sentiment remains cautious as the company faces pressure to meet expectations in an increasingly competitive cybersecurity landscape.