SentinelOne provides tepid quarterly forecast, to cut 8% jobs

Palo Alto Networks

28/05/2026 21:51

May 28 (Reuters) - Cybersecurity company SentinelOne S.N 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 CRWD.O and Palo Alto Networks PANW.O, as well as from Microsoft MSFT.O, 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)
 ((Juby.Babu@thomsonreuters.com;))