By Reuters | Updated: May 29, 2026
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
© Thomson Reuters 2026
