SentinelOne Q1 revenue falls to $276.7M versus $277.4M estimate, announces 8% cut
S•SentinelOne reported Q1 adjusted revenue of $276.7M, missing estimates by $680K, and announced an 8% workforce reduction costing $25M. The company set Q2 revenue guidance at $289M–$291M below forecasts, recorded ARR of $1.16B (+23%), and maintained its FY27 outlook.
1. Q1 performance missed estimates
SentinelOne delivered adjusted revenue of $276.7 million for the quarter ended April 30, narrowly missing the $277.38 million consensus, while adjusted EPS of $0.04 beat the $0.02 forecast. Shares declined about 12% on investor concerns over the revenue shortfall and softer near-term outlook.
2. Cost-cutting and restructuring plan
The company unveiled a restructuring to reduce complexity and sharpen focus on AI, data, cloud and endpoint security, cutting approximately 8% of its 3,000-strong workforce. Total restructuring charges are estimated at $25 million, including $15 million in cash, with most actions expected to conclude by the end of fiscal Q2 2027.
3. Subscription growth and guidance
Annualized recurring revenue rose 23% to $1.16 billion, driven by a record $44 million in net new ARR and a 17% increase in $100K+ customers to 1,702. Management set Q2 revenue guidance of $289M–$291M versus a ~$292M consensus, left full-year revenue at $1.195B–$1.205B and EPS at $0.32–$0.38, and raised the non-GAAP operating margin target to 10%.
