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Samsara (IOT)
NYSE:IOT
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Samsara
(NYSE:IOT)
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Rating:70Outperform
Price Target:
$44.00
▲(13.64% Upside)
Samsara's strong earnings call and financial performance, particularly in revenue growth and cash flow improvement, are key strengths. However, ongoing profitability challenges and valuation concerns due to negative net income and a high P/E ratio weigh on the score. Technical indicators suggest a cautiously optimistic outlook, with the stock trading above several moving averages.
Positive Factors
Revenue Growth
Samsara's strong ARR growth indicates robust demand for its IoT solutions, supporting long-term revenue expansion and market leadership.
Strategic Partnerships
The partnership with Allianz UK enhances Samsara's market reach and product adoption, leveraging data-driven insights to improve fleet safety and efficiency.
Product Innovation
Innovative product launches expand Samsara's offerings, meeting diverse customer needs and strengthening its competitive advantage in IoT solutions.
Negative Factors
Profitability Challenges
Ongoing net losses and negative profit margins highlight profitability challenges, potentially impacting Samsara's long-term financial sustainability.
Tariff and Regulatory Uncertainty
Tariff and regulatory uncertainties can disrupt sales cycles and introduce variability in results, challenging Samsara's operational stability.
Negative Return on Equity
Negative return on equity indicates inefficiencies in capital utilization, potentially limiting Samsara's ability to generate shareholder value.
Samsara (IOT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.21B
Dividend YieldN/A
Average Volume (3M)4.45M
Price to Earnings (P/E)―
Beta (1Y)1.89
Revenue Growth30.32%
EPS Growth67.92%
CountryUS
Employees3,500
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.12
Shares Outstanding348,744,300
10 Day Avg. Volume2,978,779
30 Day Avg. Volume4,450,372
Financial Highlights & Ratios
PEG Ratio3.84
Price to Book (P/B)26.80
Price to Sales (P/S)22.93
P/FCF Ratio257.00
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue13.99
Enterprise Value/Gross Profit18.20
Enterprise Value/Ebitda-2.04K
Forecast
1Y Price Target
$48.08Price Target Upside24.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Samsara Business Overview & Revenue Model
Company DescriptionSamsara is a leading Internet of Things (IoT) company that specializes in providing advanced telematics and fleet management solutions. Founded in 2015, the company operates in various sectors, including transportation, logistics, and industrial operations. Samsara's core products include GPS tracking, vehicle diagnostics, driver safety and performance analytics, and environmental monitoring through IoT sensors. By leveraging real-time data and analytics, Samsara helps organizations enhance efficiency, reduce costs, and improve safety across their operations.
How the Company Makes MoneySamsara primarily generates revenue through a subscription-based model, where customers pay for access to its IoT platform and services. Key revenue streams include monthly or annual subscriptions for hardware devices, software services, and data analytics. The company offers different pricing tiers, allowing businesses of varying sizes to select packages that suit their operational needs. Additionally, Samsara benefits from selling its hardware products, such as GPS tracking devices and sensors, which are essential for its service offerings. Significant partnerships with industry leaders in transportation and logistics also contribute to its earnings, providing expanded market reach and collaborative service offerings.
Samsara Earnings Call Summary
Earnings Call Date:Aug 02, 2025
(Q2-2026)
| Next Earnings Date:Dec 04, 2025
Earnings Call Sentiment Positive
Samsara's earnings call was largely positive, with significant ARR growth, successful large customer acquisitions, and new product launches driving impressive results. While there were some challenges regarding sales cycles and tariff impacts, these were addressed effectively in the quarter.Q2-2026 Updates
Positive Updates
Strong ARR Growth
Samsara ended Q2 with $1.6 billion in Annual Recurring Revenue (ARR), showing a 30% year-over-year increase. The $100,000+ ARR customers now represent 59% of total ARR, contributing close to $1 billion, which is up 35% year over year.
Increase in Large Customers
The company added 17 new customers with more than $1 million in ARR, marking a quarterly record. The $1 million+ ARR customers now generate over 20% of total ARR, approximately $350 million.
Innovative Product Launches
New products such as asset maintenance, commercial navigation, route planning, AI multicam, and worker safety were launched, enhancing Samsara's product portfolio.
High Customer Impact
Examples of customer success include Maxim Crane saving $13 million in maintenance costs and Mohawk Industries reducing mileage by 4.2 million miles, saving $7.75 million.
International and Market Expansion
15% of net new ACV came from non-US geographies, with Europe showing the highest level of net new ACV growth in the last four quarters.
Operating Efficiency Gains
Non-GAAP gross margin was 78%, Non-GAAP operating margin was 15%, and free cash flow margin was 11%, all showing improvement year over year.
AI and Data Utilization
Samsara processes approximately 20 trillion data points annually, using AI to deliver actionable insights, which is enhancing their product experience.
Negative Updates
Elongated Sales Cycles
Q1 experienced elongated sales cycles due to macroeconomic factors and tariff impacts, although these issues were resolved in Q2.
Tariff and Regulatory Uncertainty
There is ongoing uncertainty regarding tariff rates, which affects customer procurement strategies and introduces variability into quarterly results.
Company Guidance
During Samsara's second quarter fiscal 2026 earnings call, the company reported strong financial performance and growth metrics. Notably, Samsara ended Q2 with $1.6 billion in annual recurring revenue (ARR), marking a 30% year-over-year increase. Customers with over $100,000 in ARR contributed approximately $1 billion of this total, up 35% from the previous year. Samsara also added a record 17 customers with more than $1 million in ARR, with this segment now accounting for over 20% of total ARR, approximately $350 million. The company highlighted its strategic partnerships with large enterprises, processing around 20 trillion data points annually. Samsara's platform enhancements and AI-driven innovations were key themes, with new products like asset maintenance, commercial navigation, and AI multicam being launched to address customer needs in safety and efficiency. The company achieved a non-GAAP operating margin of 15% and projected full-year fiscal 2026 revenue growth of 26%.Samsara Financial Statement Overview
Summary
Samsara is showing strong revenue growth and improving cash flow metrics, which are positive indicators for future performance. However, the company continues to face profitability challenges, as evidenced by negative net income and margins. The balance sheet is stable with low leverage, but the negative return on equity highlights the need for better capital efficiency.Income Statement
Samsara has shown impressive revenue growth, with a TTM growth rate of 6.84% and a strong gross profit margin of 76.87%. However, the company is still operating at a net loss, with a net profit margin of -6.16% and negative EBIT and EBITDA margins, indicating ongoing profitability challenges.75
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.06, reflecting conservative leverage. However, the return on equity is negative at -7.97%, suggesting inefficiencies in generating returns from equity. The equity ratio is not explicitly calculated but appears stable given the total assets and equity figures.70
Positive
Cash Flow
Samsara's cash flow position is strengthening, with a free cash flow growth rate of 22.42% and a solid free cash flow to net income ratio of 0.88. The operating cash flow to net income ratio is 0.24, indicating improving cash generation relative to net income.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.25B | 937.38M | 652.54M | 428.35M | 249.91M |
| Gross Profit | 1.10B | 950.88M | 690.35M | 469.89M | 303.86M | 174.51M |
| EBITDA | -9.77M | -164.45M | -171.08M | -167.10M | -304.39M | -173.01M |
| Net Income | -87.93M | -154.91M | -286.73M | -247.42M | -355.02M | -210.21M |
Balance Sheet | ||||||
| Total Assets | 2.21B | 2.02B | 1.73B | 1.62B | 1.57B | 886.63M |
| Cash, Cash Equivalents and Short-Term Investments | 701.80M | 694.80M | 547.66M | 689.86M | 921.22M | 399.89M |
| Total Debt | 77.18M | 80.28M | 99.49M | 122.92M | 144.96M | 173.27M |
| Total Liabilities | 992.33M | 955.11M | 819.70M | 678.99M | 578.98M | 1.42B |
| Stockholders Equity | 1.21B | 1.07B | 915.15M | 938.02M | 988.95M | -532.80M |
Cash Flow | ||||||
| Free Cash Flow | 169.63M | 111.48M | -22.77M | -136.26M | -190.83M | -203.87M |
| Operating Cash Flow | 192.65M | 131.66M | -11.81M | -103.02M | -171.48M | -171.77M |
| Investing Cash Flow | -119.83M | -66.62M | -78.69M | -631.85M | -20.04M | -32.20M |
| Financing Cash Flow | 29.16M | 27.10M | 21.00M | 14.21M | 701.64M | 401.97M |
Samsara Technical Analysis
Negative
38.72
Price Trends
38.37
Positive
37.77
Positive
41.05
Negative
Market Momentum
0.40
Negative
49.95
Neutral
61.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOT, the sentiment is Negative. The current price of 38.72 is above the 20-day moving average (MA) of 38.65, above the 50-day MA of 38.37, and below the 200-day MA of 41.05, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IOT.
Samsara Risk Analysis
Samsara disclosed 84 risk factors in its most recent earnings report. Samsara reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Samsara Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $65.30B | 34.01 | 165.17% | ― | 14.46% | 48.06% | |
78 Outperform | $145.20B | 134.07 | 17.45% | ― | 14.87% | -57.43% | |
71 Outperform | $51.97B | ― | -2.70% | ― | 23.31% | 31.04% | |
70 Outperform | $22.21B | -248.52 | -8.07% | ― | 30.32% | 67.92% | |
67 Neutral | $81.59B | -783.15 | -8.88% | ― | 28.06% | -7.44% | |
66 Neutral | $133.99B | -446.20 | -8.99% | ― | 23.46% | -270.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IOT
Samsara
38.72
-11.54
-22.96%
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232.91
140.40
151.77%
Samsara Corporate Events
Business Operations and StrategyExecutive/Board Changes
Samsara Appoints Gary Steele to Board of Directors
Positive
Aug 21, 2025
On August 16, 2025, Samsara Inc. announced the appointment of Gary Steele to its Board of Directors, effective September 1, 2025. Steele, with over 30 years of experience in software, cybersecurity, and AI innovation, is expected to bring significant value to Samsara’s ongoing product innovation and operational excellence. His previous roles include CEO positions at Shield AI, Splunk Inc., and Proofpoint, Inc. Steele’s appointment aligns with Samsara’s commitment to expanding its product offerings and driving multi-product adoption, reinforcing its position as a leader in connected operations.
The most recent analyst rating on (IOT) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Samsara stock, see the IOT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.