SentinelOne shares fell 32.4% over 2025 after an initial sell-off in early January triggered by concerns over decelerating billings, and continued sliding 7.3% into 2026 despite a strengthening broader market. Over the past two years the stock has lost roughly 45% of its value versus gains of 16.4% in the S&P 500 and 20.4% in the Nasdaq Composite during 2025.

Fiscal 2025 revenue climbed 29.5% year-over-year to $225.5 million in Q4, topping consensus by $3.2 million, and rose steadily to $258.9 million in Q3 2026, beating estimates by $2.7 million. However, gross margin contracted to approximately 74.5% as the company invested heavily in R&D and sales headcount, driving non-GAAP operating expenses up 34% year-over-year.

Adjusted losses per share widened to $0.22 in Q4 2025—$0.01 worse than forecast—and management’s forward guidance failed to reassure investors. In May, revenue and non-GAAP EPS in line with projections did little to stem selling, as guidance for billings growth of 25%–27% in Q2 fell short of street expectations of low-30% growth.

At roughly 72.5 times forward earnings and 7.7 times expected sales, SentinelOne trades at a substantial premium to its peer group average of 45 times earnings and 5 times sales. Investors cite intensifying competition from larger incumbents, the need for deeper partner integrations and the risk that accelerating operating investments will delay a return to profitability.