SentinelOne shares slide despite earnings beat as weak outlook weighs

Proactive

Fri, May 29, 2026 astatine 10:22 AM CDT 2 min read

SentinelOne Inc. (NYSE: S) shares fell astir 11% connected Friday aft the cybersecurity institution topped net estimates but issued softer-than-expected second-quarter gross guidance and announced a astir 8% workforce reduction.

The institution reported first-quarter fiscal 2027 gross of $276.7 million, conscionable beneath the Wall Street statement of $277.3 cardinal but wrong its ain guidance range.

Adjusted EPS of $0.04 bushed the $0.02 expert estimate.

Annual recurring gross roseate 23% year-over-year to $1.16 billion, somewhat supra estimates. Net caller ARR reached a grounds $44 million, up 55% year-over-year, marking the 4th consecutive 4th of affirmative nett caller ARR growth. Remaining show obligations grew 30% year-over-year to a grounds $1.5 billion.

Non-endpoint solutions, including AI, data, and cloud, present correspond astir fractional of full ARR. AI information ARR astir doubled sequentially, portion the company's Flex offering surpassed $200 cardinal successful full declaration worth successful nether 3 quarters since launch.

For the 2nd quarter, SentinelOne guided for gross of $289 cardinal to $291 million, beneath the Street's estimation of astir $292 million. The guidance includes an estimated $25 cardinal restructuring complaint tied to the workforce reduction, which is expected to make astir $45 cardinal successful annualized savings. Full-year non-GAAP EPS guidance of $0.32 to $0.38 bracketed the statement estimation of $0.34.

Wedbush maintained its Outperform standing and $20 terms target, saying the institution is "sharpening its operating model" nether caller CFO Sonalee Parekh and remains good positioned successful AI security.

Bank of America was much constructive, upgrading the banal to Buy from Neutral and raising its terms people to $20 from $16. The slope called the post-market selloff an charismatic introduction point, citing durable 20%-plus gross maturation and a wide way to borderline expansion, and characterized the blimpish guidance arsenic a deliberate reset nether caller enactment alternatively than a motion of weakening demand.