SentinelOne Cuts Earnings Guidance, Shares Fall Friday

SentinelOne Inc. shares traded lower on Friday after the company reported second-quarter financial results after Thursday's market close. The company lowered its fiscal 2027 adjusted earnings per share guidance to below market expectations.

SentinelOne stock is trending lower. What is driving S shares down?

Q2 Results Beat Expectations

SentinelOne reported adjusted earnings per share of 8 cents, beating the consensus estimate of 7 cents. Additionally, the company reported revenue of $291.98 million, surpassing the consensus estimate of $290.25 million, up 21% year-over-year.

As of July 31, total cash, cash equivalents, and investments stood at $813 million. Annualized recurring revenue grew 22% year-over-year to $1.218 billion, while the number of customers with annualized recurring revenue of $100,000 or more increased 13% to 1,715.

SentinelOne Chief Financial Officer Sonalee Parekh said: "Q2 was a strong execution quarter that showcased the power of our platform model. We exceeded all of our top and bottom line guidance metrics, delivered record profitability, and are raising our fiscal 2027 revenue and operating income outlook. We are scaling the business with discipline, investing in key AI growth opportunities while driving significant operating leverage."

Updated Fiscal 2027 Guidance; Q3 EPS Outlook Below Expectations

SentinelOne lowered its fiscal 2027 adjusted earnings per share guidance from a prior range of 32 cents to 38 cents to a new range of 30 cents to 32 cents, versus the consensus estimate of 35 cents. The company raised its fiscal 2027 revenue guidance from a prior range of $1.195 billion to $1.205 billion to between $1.202 billion and $1.207 billion, versus the consensus estimate of $1.205 billion.

For the third quarter, SentinelOne expects adjusted earnings per share of 8 cents to 9 cents, versus the consensus estimate of 11 cents, and revenue of $309 million to $311 million, versus the consensus estimate of $309.442 million.

SentinelOne Shares Trade Lower

S stock price: According to data, SentinelOne shares were down 2.20% at $22.21 at the time of writing.