New York, May 28, 2026, 18:06 EDT
SentinelOne stock dropped after hours Thursday. The cybersecurity company guided second-quarter revenue under Wall Street views and announced plans to lay off about 8% of staff.
The stock dropped 18.65% to $14.66 after hours. That came after a 0.39% gain to $18.02 at the close. More than 25 million shares changed hands during the session, volume above what’s been typical lately.
SentinelOne shares had built up some steam ahead of the report, with the stock rising over 20% so far this year and about 23% in the last month before it slipped late in the session, market data shows.
SentinelOne said first-quarter revenue rose 21% from a year ago to $276.7 million, with annualized recurring revenue at $1.163 billion, up 23%. ARR is a run-rate based on subscription and usage contracts.
SentinelOne’s guidance for the next quarter came in light. The company said it expects second-quarter revenue of $289 million to $291 million. That’s less than the $292 million average estimate from LSEG, according to Reuters. Adjusted earnings are projected at 6 cents to 8 cents a share; analysts had 8 cents.
Chief Executive Tomer Weingarten said it was a “solid start” to the quarter, noting “record net new ARR growth.” Chief Financial Officer Sonalee Parekh flagged a “strong operating profit margin” and said the company is lifting its operating-income forecast for the year. Business Wire
Investors kept their eyes on the layoffs and muted guidance. According to Reuters, SentinelOne is bracing for a $25 million restructuring charge, with $15 million as cash expenses, tied to a move toward AI, data and cloud.
SentinelOne kept its full-year fiscal 2027 revenue guidance unchanged at $1.195 billion to $1.205 billion, with its adjusted earnings forecast held at 32 to 38 cents a share. The company raised its outlook for full-year non-GAAP operating income, now expecting $115 million to $125 million. Non-GAAP results leave out some expenses, like stock-based pay and restructuring charges.
SentinelOne still has plenty of competition. The company, which offers AI-based security for endpoints, cloud, and identity, is up against bigger names like CrowdStrike, Palo Alto Networks, and Microsoft. Microsoft ties security into bigger software deals.
S&P 500 and Nasdaq hit record closes Thursday as AI buzz and risk-on mood boosted stocks, but none of that lifted SentinelOne after hours. The stock dropped late, making the move more notable with markets strong elsewhere.
The risk for shareholders is that the restructuring could point to slowing demand, not only better cost control. Reuters said some corporate clients are cutting budgets, looking harder at deals, and making sales cycles longer. If that keeps up, SentinelOne’s AI and cloud focus might take longer to impact revenue.
Execution is now in focus. SentinelOne told investors it would talk about Q1 results and guidance on its 5 p.m. ET call. Now the market has to figure out if the recent job cuts are a push for higher margins, or if this is just another hint that buying cybersecurity growth keeps getting tougher.
