SentinelOne Inc. (NYSE:S) stock fell sharply in premarket trading Friday after the cybersecurity company reported first-quarter revenue that narrowly missed Wall Street estimates and issued softer-than-expected guidance.

First-Quarter Results

SentinelOne reported adjusted earnings of 4 cents per share, exceeding analysts’ expectations of 2 cents per share, according to Benzinga Pro.

Revenue rose to $276.7 million but came in slightly below the consensus estimate of $277.3 million.

The company continued to improve profitability, with operating margin expanding to approximately 4%, up about 550 basis points from a year earlier, reflecting stronger operating leverage.

Remaining performance obligations increased 30% year over year to a record $1.5 billion, highlighting continued demand and providing greater revenue visibility.

SentinelOne ended the quarter with $812 million in cash and investments and no debt.

ARR Growth Accelerates

The company generated record net new annual recurring revenue (ARR) of $44 million, up 55% from a year earlier and marking its fourth consecutive quarter of positive net additions.

Total ARR grew 23% year over year, supported by new customer wins and expansion within existing enterprise accounts.

AI Security ARR nearly doubled from the prior year as adoption of the company’s artificial intelligence-driven cybersecurity offerings continued to accelerate.

The number of customers generating more than $100,000 in ARR increased 17% year over year, while ARR per customer reached a record level.

Outlook And Restructuring Plan

SentinelOne affirmed its fiscal 2027 outlook, maintaining adjusted earnings guidance of 32 cents to 38 cents per share, compared with analyst estimates of 34 cents, and revenue guidance of $1.195 billion to $1.205 billion, largely in line with expectations of $1.206 billion.

For the second quarter, the cybersecurity company projected adjusted earnings of 6 cents to 8 cents per share, bracketing Wall Street estimates of 7 cents, while forecasting revenue of $289 million to $291 million, slightly below the consensus estimate of $291.95 million.

The company also announced a restructuring plan that includes reducing its workforce by about 8% as it sharpens its focus on artificial intelligence, data, cloud, and endpoint security.

SentinelOne expects to record a one-time restructuring charge of approximately $25 million, including about $15 million in cash expenses. The program is expected to be substantially completed during the second quarter of fiscal 2027.

Stock Reaction

S Price Action: SentinelOne shares were down 16.93% at $14.97 during premarket trading on Friday, according to Benzinga Pro data.

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