SentinelOne Q1 Earnings Meet Expectations, Revenues Miss, Stock Down

Core Insights - SentinelOne, Inc. reported first-quarter fiscal 2026 results with adjusted earnings meeting estimates and total revenues slightly exceeding expectations, showing year-over-year growth in both metrics [1][4]. Financial Performance - Adjusted earnings per share (EPS) for the quarter was two cents, matching the Zacks Consensus Estimate, compared to a break-even adjusted EPS in the same period last year [4]. - Total revenues reached $229.03 million, marginally surpassing the consensus mark of$229 million by 0.4% and reflecting a year-over-year growth of 22.9%, driven by increased sales to new customers and additional licenses to existing customers [5]. - Annualized recurring revenues (ARR) grew 24% year over year to $948.1 million as of April 30, 2025 [5]. Operating Highlights - Adjusted gross profit for the quarter was 79$260 million, attributed to higher research and development, sales and marketing, and general and administrative expenses, along with a one-time restructuring expense [6]. Future Outlook - The company anticipates fiscal second-quarter revenues to be approximately $242 million, indicating a year-over-year growth of 21.7$996 million and $1,001 million, a reduction from the previous forecast of$1,007-$1,012 million, compared to$821.5 million reported in fiscal 2025 [10]. - Full-year adjusted gross margin is expected to remain between 78.5% and 79.5%, while the adjusted operating margin is projected to be in the range of 3-4%, an improvement from the negative 3% reported in fiscal 2025 [11]. Strategic Initiatives - The company has initiated a share repurchase authorization program, with the board approving $200 million for share repurchases, to be executed based on market conditions and regulatory requirements [8].