Why SentinelOne Stock Is Sinking Today
Key Points
SenintelOne's fiscal Q1 earnings topped Wall Street's forecast, but sales came in lower than expected.
Investors were hoping the company would issue stronger forward guidance.
On the heels of the company's recent quarterly release, SentinelOne (NYSE: S) stock moved lower in Friday's trading. The company's share price ended the daily session down 8.2% and had been off as much as 15.3% earlier in trading.
For the first quarter of its 2027 fiscal year, SentinelOne reported earnings per share that surpassed Wall Street's target and sales that fell slightly short of the average analyst estimate. The first quarter of the company's 2027 fiscal year ended April 30, 2026.
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SentinelOne moved lower on mixed fiscal Q1 results
SentinelOne recorded non-GAAP (adjusted) earnings per share on sales of $276.66 million in fiscal Q1. While adjusted earnings per share came in $0.02 higher than the average analyst estimate, revenue missed the average forecast by $0.77 million. With sales still up 20.8% year over year in the quarter, the company's Q1 sales miss would have been less concerning were it not for other news and guidance from the cybersecurity specialist.
What's next for SentinelOne?
In light of strong bullish momentum for cybersecurity stock valuations, investors were hoping for SentinelOne to deliver a strong beat-and-raise quarter. Meanwhile, the company wound up reiterating its guidance for sales to be between $1.195 billion and $1.205 billion for the current fiscal year. Even though the company raised its operating income forecast, news that the company is conducting significant layoffs has some investors concerned about what the impact could be on the sales expansion trajectory.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SentinelOne. The Motley Fool has a disclosure policy.