SentinelOne Misses Q1 Revenue, Cuts 8% Workforce as Shares Plunge
S•SentinelOne reported Q1 FY27 revenue of $276.7 million, up 21% but missing consensus by $0.6 million, and saw GAAP gross margin compress by 300 basis points to 72%. The company cut 8% of its workforce and guided Q2 revenue of $289–291 million, below forecasts, spurring an 18% premarket share decline.
1. Q1 Financial Results
SentinelOne reported Q1 FY27 revenue of $276.7 million, up 21% year-over-year, slightly missing the $277.3 million estimate. GAAP gross margin fell 300 basis points to 72%, non-GAAP operating income turned positive at $10.5 million, and ARR reached $1.163 billion.
2. Workforce Reduction and Guidance
The company announced an unexpected 8% workforce reduction as it guided Q2 revenue of $289–291 million below analysts’ forecasts and raised full-year revenue outlook to $1.195–1.205 billion. It also increased non-GAAP operating income guidance to $115–125 million.
3. Market Reaction and Analyst Views
Shares plunged 18% in pre-market trading, reflecting investor concern over the revenue miss and workforce cuts. Analysts remain divided, with one cutting the stock to Market Perform and another upgrading to Buy, citing record net new ARR and improving operating margins.
