Goldman Cuts SentinelOne Price Target to $16.50 as Q3 Revenue Rises 23%
Goldman Sachs cut SentinelOne’s target to $16.50 from $19, retained a Neutral rating, and cited a software valuation reset with expected M&A acceleration in 2026. SentinelOne reported Q3 FY26 revenue of $259 million, up 23% with 34% international growth, and acquired Observo AI for $225 million to boost AI-native security analytics.
1. Analyst Lowers Price Target
Goldman Sachs reduced its price target on SentinelOne from $19 to $16.50, retaining a Neutral rating and highlighting a broader software valuation reset.
2. Q3 FY26 Financial Results
SentinelOne reported Q3 FY26 revenue of $259 million, up 23% year-over-year, with international sales growing 34%, driven by wider adoption of its Singularity™ platform.
3. Observo AI Acquisition
The company closed a $225 million acquisition of Observo AI to strengthen its data pipeline and enhance AI-native security analytics capabilities.
4. Valuation Reset and M&A Outlook
Goldman Sachs noted that compressed public valuations and structural software strengths could spur accelerating M&A activity in 2026, creating opportunities for value creation.