By Dean Seal

SentinelOne said AI-enabled security products now make up half of its business and are pushing up revenue and earnings.

The cybersecurity company expects $289 million to $291 million in revenue for the fiscal second quarter that ends in late July, up from $242 million a year earlier though below analyst forecasts for $291.9 million, according to FactSet.

Shares dropped 18% to $14.75 after hours.

In the first quarter that ended April 30, SentinelOne posted a loss of $76.2 million, or 23 cents a share, compared with $208.2 million, or 63 cents a share, a year earlier.

Stripping out one-time items, adjusted earnings were 4 cents a share, beating analyst expectations for 2 cents a share.

Revenue rose 21% to $276.7 million, sliding under analyst projections for $277.3 million.

SentinelOne's emerging solutions business, which features its next-generation security tools, now makes up 50% of its total annualized recurring revenue. The company has been transitioning from its legacy security business centered around laptops and servers to a multi-product platform.

The spurt in revenue outpaced growth in operating expenses, which were up just 7% from the year-earlier quarter. Last year's first quarter also included a $133.5 million provision for income taxes that wasn't present this time around to drag down the bottom line.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 28, 2026 17:12 ET (21:12 GMT)

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