SentinelOne, Inc. (S) shares plummeted 11.85% in pre-market trading on Thursday, following the cybersecurity firm's release of its first-quarter fiscal year 2026 financial results and reduced annual revenue forecast. The significant drop reflects growing investor concerns about the company's growth prospects amid economic uncertainties.

While SentinelOne reported Q1 revenue of $229 million, slightly beating analyst estimates of $228.4 million, the company's decision to lower its full-year outlook overshadowed this modest beat. SentinelOne now expects annual revenue between $996 million and $1 billion, down from its previous forecast of $1.007 billion to $1.012 billion. This reduction falls short of the average analyst expectation of $1.01 billion.

Adding to investor worries, SentinelOne provided weaker-than-expected guidance for the second quarter, projecting revenue of $242 million compared to analyst estimates of $244.9 million. The company's adjusted earnings per share for Q1 came in at $0.02, meeting consensus expectations. However, the lowered revenue projections suggest that businesses are becoming more cautious with their cybersecurity spending in the face of economic headwinds. In response to the situation, SentinelOne's board has authorized a $200 million share repurchase program, potentially aimed at supporting the stock price. As the cybersecurity market continues to navigate through economic challenges, SentinelOne's performance will be closely watched as an indicator of broader industry trends.