Cybersecurity firm SentinelOne beats Q1 earnings estimates but misses revenue expectations and issues soft July quarter sales outlook.
SentinelOne (S) shares fell 11% to around $16 in morning trading after reporting first-quarter earnings that exceeded estimates but revenue that matched expectations. The company’s July quarter sales guidance disappointed investors, contributing to the sell-off.
The cybersecurity firm also announced an 8% workforce reduction. Earlier this year, SentinelOne stock had rallied following a partnership with Google, which recently completed its acquisition of Wiz. Analysts at Bank of America upgraded the stock to Buy despite the post-earnings decline.
The mixed results highlight investor sensitivity to revenue growth and forward guidance in the cybersecurity sector, where competition remains intense.