Cybersecurity firm SentinelOne beats Q1 earnings but forecasts Q2 revenue below Wall Street expectations, triggering a sell-off.
SentinelOne Inc. (S) shares plunged nearly 11% Friday after reporting first-quarter fiscal 2027 revenue of $276.7 million, slightly below the $277.3 million consensus. Adjusted EPS of $0.04 surpassed estimates of $0.02, while annual recurring revenue grew 23% year-over-year to $1.16 billion.
The company’s net new ARR hit a record $44 million, up 55% year-over-year, and remaining performance obligations rose 30% to $1.5 billion. Non-endpoint solutions, including AI and cloud, now account for half of total ARR. However, Q2 revenue guidance of $289 million to $291 million fell short of the $292 million estimate, including a $25 million restructuring charge.
SentinelOne also announced an 8% workforce reduction, expected to generate $45 million in annualized savings. Full-year non-GAAP EPS guidance of $0.32 to $0.38 bracketed the $0.34 consensus.