SentinelOne stock falls on revenue miss and 8% layoffs Q1 2027

SentinelOne announced a restructuring program cutting astir 8% of its full-time workforce connected Wednesday, arsenic the cybersecurity institution reported first-quarter gross that fell abbreviated of expectations and issued guidance that disappointed investors.

SentinelOne banal fell astir 12%, according to CNBC, aft the results were released. The institution reported adjusted gross of $276.7 cardinal for the 4th ended April 30. Analysts had expected $277.38 million, according to Yahoo Finance. Adjusted net came successful astatine $0.04 per share, up of the $0.02 per stock analysts had anticipated.

According to the company, the restructuring is aimed astatine sharpening absorption connected AI, data, cloud, and endpoint information portion streamlining operations. The associated costs are estimated astatine astir $25 cardinal successful total, with currency outlays accounting for astir $15 cardinal of that figure, the institution said. SentinelOne said it anticipates wrapping up the bulk of the restructuring enactment by the extremity of its fiscal 2nd 4th of 2027.

"This is not a reactive measure, it is simply a deliberate improvement to trim complexity, rise the show bar, and physique a leaner, much agile SentinelOne," CEO Tomer Weingarten told CNBC connected the net call. The institution had much than 3,000 employees astatine the extremity of April, according to CNBC.

SentinelOne's second-quarter guidance besides weighed connected capitalist sentiment. For the existent quarter, SentinelOne acceptable a gross people successful the scope of $289 cardinal to $291 million, falling abbreviated of the astir $292 cardinal that analysts had projected, according to CNBC.

Full-year guidance for fiscal 2027 was near unchanged, with the institution holding to a gross scope of $1.195 cardinal to $1.205 cardinal and an adjusted net outlook of $0.32 to $0.38 per share, the institution said.

Despite the banal decline, respective underlying metrics showed continued momentum. At quarter's end, full ARR had climbed to $1.16 billion, reflecting 23% maturation compared with the aforesaid play a twelvemonth ago. Net caller ARR deed a grounds $44 cardinal during the quarter, a 55% leap from the anterior twelvemonth period, according to Benzinga. SentinelOne's roster of customers spending astatine slightest $100,000 annually expanded 17% twelvemonth implicit year, reaching 1,702.

On the profitability side, the institution nudged its non-GAAP operating borderline outlook upward to 10%, a 40-basis-point summation that puts it 650 ground points supra wherever the metric stood a twelvemonth earlier, according to Yahoo Finance.