SentinelOne shares slide 6.4% as profit outlook overshadows revenue beat

SentinelOne shares declined 6.4% in after-hours trading following the cybersecurity firm's forecast of adjusted profit for the third quarter and full fiscal year below Wall Street expectations. Despite a revenue beat and significant improvement in profitability, investors were more focused on the company's earnings trajectory ahead.

The company expects adjusted earnings of 8 cents to 9 cents per share for the third quarter, falling short of the 11-cent analyst consensus, while revenue of $309 million to $311 million aligns with the $309.5 million estimate. For fiscal 2027, adjusted earnings are forecast at 30 cents to 32 cents per share, below the 35-cent estimate from analysts.

The mixed outlook leaves SentinelOne facing a higher bar on profitability, even as revenue growth remains robust. The company has experienced a 21% increase in second-quarter revenue to $292 million, with adjusted net income more than doubling to $28.5 million and a profit margin widening to 10%.

Brief written by urgent.news from Investing.com's own syndicated text. Machine-written — may contain errors; check the original before relying on it.