SentinelOne provides tepid quarterly forecast, to cut 8% jobs

May 28 (Reuters) – Cybersecurity company SentinelOne forecast second-quarter revenue below analysts’ expectations on Thursday and said it would cut about 8% of its workforce as it looks to invest in growth areas such as AI, data and cloud.

The company also missed first-quarter revenue estimates, sending its shares slumping 18% in extended trading.

Here are some details:      

• SentinelOne faces intense competition from larger rivals such as CrowdStrike and Palo Alto Networks, as well as from Microsoft, which is bundling security features into its products.

• Even as ransomware and nation-state threats boost cybersecurity demand, some corporate clients are tightening their budgets, scrutinizing deals and extending sales cycles.

• SentinelOne expects a one-time charge of nearly $25 million related to the restructuring, of which $15 million are cash-based expenditures.

• As of January 2026, the company had more than 2,900 full-time employees worldwide.

• SentinelOne forecast second-quarter revenue to be between $289 million and $291 million, below analysts’ average estimate of $292 million, according to data compiled by LSEG.

• It expects adjusted profit per share in the range of 6 cents to 8 cents, while analysts expect 8 cents.

• Revenue for the first quarter ended April 30 came in at $276.7 million, missing the estimate of $277.3 million.

• The company reaffirmed its fiscal 2027 revenue and adjusted profit per share forecasts.

• SentinelOne uses AI to help businesses monitor and secure laptops, servers and other devices connected to their networks.

• Its Singularity platform aims to be an all-in-one solution for security teams, a strategy that has become critical as firms look to simplify their security infrastructure.

(Reporting by Juby Babu in Mexico City; Editing by Shreya Biswas and Shilpi Majumdar)