SentinelOne $S drops 8% as FY2027 revenue guide trails growth reset

SentinelOne $S fell 8% after the cybersecurity company paired 21% Q1 FY2027 revenue growth with a restructuring plan and a revenue outlook that kept investors focused on the pace of expansion. The company reported Q1 revenue of $277M for the quarter ended April 30, 2026, up from $229M a year earlier.

Annualized recurring revenue rose 23% to $1.163B, while customers with ARR of $100,000 or more increased 17% to 1,702. GAAP gross margin was 72%, down from 75%, and non-GAAP gross margin was 77%, down from 79%. GAAP operating margin improved to negative 29% from negative 38%, and non-GAAP operating margin moved to positive 4% from negative 2%.

The market reaction centered on the forward mix. SentinelOne guided Q2 FY2027 revenue to $289M-$291M and non-GAAP EPS to $0.06-$0.08. For FY2027, it guided revenue to $1.195B-$1.205B, non-GAAP operating income to $115M-$125M, and non-GAAP EPS to $0.32-$0.38. The filing also described a restructuring plan with estimated charges of $22M-$26M, including $12M-$14M tied to severance and benefits.

The company said the plan is intended to streamline the organization and concentrate investment in AI, data, cloud, and endpoint security. That combination made the stock move a margin-versus-growth story: revenue and ARR still grew above 20%, but investors had to weigh a workforce reset against the size and timing of the next AI-security cycle.

The next checkpoint is Q2 execution against the $289M-$291M revenue guide and whether net new ARR growth can remain strong after the restructuring charges are recognized.

Not investment advice. Verify all figures with primary sources before acting.