SentinelOne shares slide as cautious enterprise spending clouds growth outlook
Full-year guidance lowered; analysts cite SMB exposure and mounting competitive pressure.
SentinelOne trimmed its annual revenue forecast on Wednesday, signaling cautious spending by businesses amid ongoing economic uncertainty. The news sent its shares down nearly 12% in extended trading.
Enterprise clients are pulling back on critical cybersecurity expenditures, as a fragile macroeconomic environment continues to pressure technology budgets, dampening demand for companies like SentinelOne.
Analysts noted that SentinelOne has greater exposure to small- and mid-sized enterprise customers, which tend to scale back more quickly during periods of uncertainty. This dynamic has contributed to growing investor concerns.
The company revised its full-year revenue forecast to a range of $996 million to $1 billion, down from its previous guidance of $1.01 billion to $1.012 billion. Analysts had expected $1.01 billion, according to data compiled by LSEG.
Related articles:
At the same time, SentinelOne faces intensifying competition from cybersecurity giants like Palo Alto Networks and CrowdStrike, which continue to dominate the sector.
To support its stock, the Mountain View, California-based firm also announced a $200 million share buyback program.
Looking ahead, SentinelOne projected second-quarter revenue of $242 million, slightly below Wall Street’s estimate of $244.9 million. For the first quarter ended April 30, it reported revenue of $229 million, just ahead of expectations of $228.4 million.
