By Kit Norton
Shares of SentinelOne sank late Thursday after the cybersecurity company announced a restructuring plan that will include reducing its headcount by 8% to concentrate investments on artificial intelligence.
SentinelOne stock declined 17% in after-hours trading after ending regular trading up 0.4% to $18.02 on Thursday. The stock has advanced 27% in May, part of a 20% gain this year.
The cybersecurity company reported late Thursday plans to streamline its structure and focus spending on AI, data, and the cloud. Under the plan, SentinelOne plans to reduce the number of its current full-time employees by approximately 8%.
SentinelOne projects it will incur a one-time charge of about $25 million due to the restructuring, with between $12 million and $14 million related to severance payments and $10 million to $12 million related to stock-based compensation.
The company expects the restructuring to be mostly completed in the fiscal second quarter.
The announcement of the staff reduction came in tandem with the company's fiscal 2027 first-quarter earnings.
SentinelOne posted adjusted earnings of 4 cents a share, compared with 2 cents a share a year ago and above Wall Street's 2 cents a share expectation. Revenue rose 21% to $277 million, beating the analyst consensus call for $244.6 million.
SentinelOne also maintained its full-fiscal year outlook for earnings between 32 cents a share and 38 cents a share with revenue totaling between $1.195 billion and $1.205 billion.
Wall Street forecasts full-fiscal year earnings of 34 cents a share with sales of $1.2 billion, according to FactSet.
CEO Tomer Weingarten said in the earnings release that the company is "actively pushing the frontier of autonomous, agentic defense" across AI data, and the cloud."
"Enterprises recognize that securing the AI era requires machine speed defense which only truly modern infrastructure can deliver, and they are choosing SentinelOne as the foundation to build upon," Weingarten added.
Write to Kit Norton at kit.norton@barrons.com
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May 28, 2026 17:12 ET (21:12 GMT)
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