SentinelOne, Inc. (S) experienced a significant after-hours plunge of 17.37% on Thursday following the release of its fiscal first-quarter 2027 financial results. The cybersecurity company reported mixed earnings, with a slight revenue miss and weaker-than-expected forward guidance, coupled with the announcement of a major restructuring plan.

The company's Q1 revenue of $277 million came in just below the consensus estimate of $277.3 million, while adjusted EPS of $0.04 beat expectations of $0.02. However, investors focused on the concerning decline in operating cash flow margin, which nearly halved to 14% compared to 23% in the prior year. Furthermore, SentinelOne's Q2 revenue guidance of $289-291 million fell short of the $292 million analyst estimate.

Compounding the negative sentiment, SentinelOne announced a restructuring plan to focus on AI, data, cloud, and endpoint security, which includes reducing its full-time workforce by approximately 8%. The company expects to incur a one-time charge of about $25 million related to the restructuring. This news follows reports of impending layoffs ahead of the earnings release and comes amid broader sector weakness, with cybersecurity peer Zscaler having previously reported disappointing results that weighed on the industry.