Highly sensitive fluxgate magnetic field sensors with rod-shaped cores are widely used for non-destructive testing as well as for industrial applications. However, in case of both Foerster and Vacquier (two-core sensors configurations), fluxgate sensors sensitivity is directly connected with the relative magnetic permeability of the sensor’s core. It should be highlighted that the magnetic permeability of rod-shaped magnetic cores is driven mainly by the demagnetization factor determined by its slenderness (aspect ratio). The paper presents the analyses of sensitivity limits of fluxgate sensors with rod-shaped cores. On the base of estimations of demagnetization factor specific for fluxgate sensors, it is shown that in case of rod-shaped cores, the sensor’s sensitivity is connected with the shape of the core rather than its relative magnetic permeability. This conclusion is essential during the development and optimization of functional characteristics of fluxgate sensors.