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Samsara (IOT)
NYSE:IOT
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Samsara (IOT) AI Stock Analysis

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IOT

Samsara

(NYSE:IOT)

Rating:66Neutral
Price Target:
$42.00
▲(10.18%Upside)
Samsara's strong financial performance and positive earnings call sentiment are offset by bearish technical indicators and a high valuation. The company's potential for future growth is promising, but current technical trends and valuation concerns warrant caution.
Positive Factors
Customer Solutions
The opportunity for customers to consolidate more work and spending on Samsara and away from legacy disparate solutions is highlighted by the new product announcements.
Market Opportunity
The large and growing connected operations market presents a durable opportunity for Samsara.
Product Innovation
Samsara's platform offers tangible ROI and compounding value, supporting accelerated product innovation.
Negative Factors
Market Perception
The market is mischaracterizing recent macro-induced pressure as indicative of a company-specific slowdown, creating an attractive entry point.
Risks
Risks to the thesis include competition, valuation, and multiclass ownership.
Valuation Concerns
IOT shares are trading at a premium, which is considered warranted due to its fast-growing, vertical-focused software and subscription-based business model.

Samsara (IOT) vs. SPDR S&P 500 ETF (SPY)

Samsara Business Overview & Revenue Model

Company DescriptionSamsara Inc. provides solutions that connect physical operations data to its Connected Operations Cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy; and applications for video-based safety, vehicle telematics, apps and driver workflows, equipment monitoring, and site visibility. It serves customers across a range of industries, including transportation and logistics, construction, field services, utilities and energy, government, healthcare and education, manufacturing, wholesale and retail trade, and food and beverage. The company was incorporated in 2015 and is based in San Francisco, California.
How the Company Makes MoneySamsara generates revenue primarily through a subscription-based model. The company charges customers for access to its IoT platform, which includes software licenses, and ongoing support and maintenance services. Additionally, Samsara sells IoT hardware devices, such as sensors and cameras, which are integrated into its platform to collect data. Key revenue streams include subscriptions to fleet management and industrial monitoring services, as well as sales of the accompanying hardware. Samsara also partners with various industry leaders to enhance its platform's capabilities and expand its market reach, contributing to its revenue growth.

Samsara Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q1-2026)
|
% Change Since: -19.32%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Positive
Samsara has shown strong financial growth with significant ARR increases and expansion of large customer partnerships. The company continues to innovate with AI-powered solutions and expand globally and through OEM partnerships. However, challenges such as elongated sales cycles and tariff impacts have been noted. Overall, the positive highlights outweigh these challenges.
Q1-2026 Updates
Positive Updates
Strong ARR Growth
Samsara delivered a strong Q1 of fiscal 2026, surpassing $1.5 billion in ARR, ending the quarter with $1.54 billion, growing 31% year-over-year adjusted for constant currency.
Increase in Large Customers
The company grew its customers with more than $100,000 in ARR by 154, marking a 35% year-over-year increase.
Notable Customer Partnerships
Samsara partnered with several large organizations, including 7-Eleven, Dallas-Fort Worth Airport, and one of the largest counties in the U.S., showcasing the company's ability to work with industry leaders.
AI-Powered Safety Solutions
Samsara's AI-powered safety solutions have had significant impacts, such as a 75% reduction in safety events and a 71% reduction in mobile usage for a major retail propane company.
Expansion of OEM Partnerships
Samsara expanded its ecosystem with new OEM partnerships with Hyundai Translead, Stellantis, and Rivian, enhancing trailer visibility, vehicle connections, and electric fleet management.
International Growth
18% of net new ACV came from international geographies, tying for the highest quarterly contribution ever, with Europe contributing its highest quarterly net new ACV mix.
Record Gross Margin
Samsara achieved a quarterly record non-GAAP gross margin of 79%.
Negative Updates
Elongated Sales Cycles
Instances of elongated sales cycles were experienced, particularly following Liberation Day in April, as some customers prioritized spending on tariff-impacted goods.
Impact of Tariffs
Customers showed concern over the impact of tariffs, which affected their purchasing strategies for vehicles, equipment, and other assets.
Company Guidance
During Samsara's First Quarter Fiscal 2026 Earnings Call, the company showcased robust financial metrics, highlighting a 31% year-over-year growth in annual recurring revenue (ARR), reaching $1.54 billion. The firm added 154 new customers with over $100,000 in ARR, representing a 35% increase compared to the previous year. Samsara's multi-product strategy was evident as 95% of its $100,000-plus ARR customers subscribed to two or more products, and 66% to three or more. International markets, particularly Europe, contributed 18% of net new annual contract value (ACV), reaching its highest quarterly contribution ever. The company reported a non-GAAP gross margin of 79% and an operating margin of 14%, illustrating significant operating leverage. Looking forward, Samsara forecasts a full-year revenue of $1.547 billion to $1.555 billion, with a non-GAAP operating margin of approximately 13% and earnings per share (EPS) between $0.39 and $0.41.

Samsara Financial Statement Overview

Summary
Samsara is experiencing strong revenue growth and improving cash flows. While still operating at a net loss, the company demonstrates a trajectory towards profitability with robust gross margins and efficient cash management. The balance sheet is solid with low leverage, indicating a strong position for future growth.
Income Statement
82
Very Positive
Samsara has shown impressive revenue growth, with a notable increase from $428.3M in 2022 to $1.34B in TTM (Trailing-Twelve-Months). Gross profit margin is strong at 76.6% for TTM. Despite this, the company is still operating at a net loss, although the net profit margin has improved over time, indicating a move towards profitability.
Balance Sheet
75
Positive
The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.07, indicating low leverage. The equity ratio is 54.4%, reflecting a strong balance between debt and equity. However, the company has yet to achieve a positive return on equity, as it is still in a net loss position.
Cash Flow
78
Positive
Samsara's cash flow has improved significantly with a positive operating cash flow of $160.6M in TTM. Free cash flow has also turned positive, indicating better cash management. The free cash flow to net income ratio is positive, suggesting efficient cash generation despite net losses.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.25B937.38M652.54M428.35M249.91M
Gross Profit950.88M690.35M469.89M303.86M174.51M
EBITDA-164.45M-234.39M-259.45M-341.93M-185.21M
Net Income-154.91M-286.73M-247.42M-355.02M-210.21M
Balance Sheet
Total Assets2.02B1.73B1.62B1.57B886.63M
Cash, Cash Equivalents and Short-Term Investments694.80M547.66M689.86M921.22M399.89M
Total Debt80.28M99.49M122.92M144.96M173.27M
Total Liabilities955.11M819.70M678.99M578.98M1.42B
Stockholders Equity1.07B915.15M938.02M988.95M-532.80M
Cash Flow
Free Cash Flow111.48M-22.77M-136.26M-190.83M-203.87M
Operating Cash Flow131.66M-11.81M-103.02M-171.48M-171.77M
Investing Cash Flow-66.62M-78.69M-631.85M-20.04M-32.20M
Financing Cash Flow27.10M21.00M14.21M701.64M401.97M

Samsara Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price38.12
Price Trends
50DMA
41.67
Negative
100DMA
40.42
Negative
200DMA
45.05
Negative
Market Momentum
MACD
-0.67
Negative
RSI
48.95
Neutral
STOCH
64.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOT, the sentiment is Neutral. The current price of 38.12 is below the 20-day moving average (MA) of 38.51, below the 50-day MA of 41.67, and below the 200-day MA of 45.05, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 64.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$24.06B29.3230.92%6.40%6.49%
72
Outperform
$44.12B-2.68%25.46%49.20%
69
Neutral
$65.56B-7.35%27.79%56.19%
68
Neutral
¥234.20B14.807.50%2.60%9.27%6.74%
66
Neutral
$21.70B-11.77%31.72%57.55%
66
Neutral
$18.92B1,777.39-5.36%35.12%-191.84%
63
Neutral
$17.14B151.982.08%13.51%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IOT
Samsara
38.99
1.48
3.95%
CHKP
Check Point
220.11
37.37
20.45%
CYBR
CyberArk Software
378.72
121.04
46.97%
OKTA
Okta
101.10
7.62
8.15%
ZS
Zscaler
286.18
104.82
57.80%
NET
Cloudflare
198.42
120.36
154.19%

Samsara Corporate Events

Executive/Board Changes
Samsara Announces Retirement of Chief Accounting Officer
Neutral
Mar 28, 2025

On March 25, 2025, Samsara Inc. announced that Andrew Munk, the Chief Accounting Officer, will retire effective April 8, 2025. His departure is not due to any disagreements with the company. Dominic Phillips, the Chief Financial Officer, will temporarily take over Munk’s responsibilities starting April 9, 2025, while the company searches for a permanent replacement.

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.Date of analysis: Jun 19, 2025