Movement Alert|SentinelOne Falls 16.82% in Pre-Market Trading, Q1 Revenue Misses Estimates as Layoffs and Weak Guidance Amplify Selloff

Market Focus
May 29

On May 29, SentinelOne fell 16.82% in pre-market trading, trading at $14.92/share, with trading volume of $239,400. The steep decline followed the release of the company's fiscal Q1 2026 earnings report after the prior session's close, compounded by broader cybersecurity sector weakness.

SentinelOne reported fiscal Q1 revenue of $276.7 million, missing the consensus estimate of $277.3 million, while adjusted EPS of $0.04 beat the $0.02 estimate. The company issued Q2 revenue guidance of $289 million to $291 million, below the Street's expectation of $291.9 million. Simultaneously, SentinelOne announced plans to reduce approximately 8% of its workforce to redirect resources toward AI, data, and cloud initiatives, signaling operational pressure. Additionally, peer Zscaler had previously plunged 24.49%, weighing heavily on cybersecurity sector sentiment. SentinelOne had already declined over 5% in prior pre-market trading due to sector contagion before earnings were released, and the multiple headwinds intensified selling pressure.

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