Why SentinelOne Stock Plummeted 32.4% Last Year and Has Kept Falling in 2026

Core Viewpoint - SentinelOne's stock experienced significant declines in 2025, dropping 32.4%, contrasting with gains in major indices like the S&P 500 and Nasdaq Composite [1] Financial Performance - In Q4 of fiscal 2025, SentinelOne reported a 29.5% year-over-year increase in sales, reaching $225.5 million, but incurred a loss of $0.22 per share, slightly worse than analyst expectations [4] - The Q1 report for the current fiscal year showed sales and earnings in line with expectations, but management's guidance disappointed investors, leading to further sell-offs [5] - The Q2 report indicated non-GAAP earnings per share of $0.04 on sales of $242.2 million, meeting sales targets and beating earnings forecasts by $0.02 [6] - In Q3 of fiscal 2026, adjusted net income was $0.07, surpassing analyst estimates, with sales of $258.9 million also exceeding expectations, but the lack of strong forward guidance contributed to stock declines [7][8] Investor Sentiment - Investor confidence in SentinelOne's growth narrative diminished throughout 2025, particularly following earnings reports that raised concerns about margins and future guidance [3] - The retirement announcement of CFO Barbara Larson likely influenced negative market reactions following the Q3 report [8]