SentinelOne Drops Over 8% After Q1 EPS Beat and Weak Guidance
S•SentinelOne reported fiscal Q1 revenue of $276.7 million, marginally below consensus, with adjusted EPS of $0.04 versus $0.02 estimates and annual recurring revenue up 23% to $1.16 billion. The stock dropped over 8% after the company issued Q2 revenue guidance of $289–291 million and announced an 8% workforce reduction.
1. Q1 Financial Results
SentinelOne posted fiscal Q1 revenue of $276.7 million, just shy of the $277.3 million consensus but within its internal range, and delivered adjusted EPS of $0.04 versus the $0.02 consensus estimate. Annual recurring revenue rose 23% year-over-year to $1.16 billion, driven by net new ARR of $44 million, while remaining performance obligations climbed 30% to $1.5 billion. Non-endpoint solutions now account for roughly half of total ARR, with AI security revenue nearly doubling sequentially and the Flex offering surpassing $200 million in contract value.
2. Forward Guidance and Outlook
For Q2, management forecast revenue between $289 million and $291 million, below the $292 million Street estimate, and maintained full-year revenue guidance of $1.195 billion to $1.205 billion. The quarterly forecast includes a $25 million restructuring charge tied to an 8% workforce reduction, expected to yield approximately $45 million in annualized cost savings. Non-GAAP EPS for the full year is projected at $0.32 to $0.38, bracketing analyst consensus of $0.34 per share.
