Samsara (IOT) AI Stock Analysis

• Market Cap: $18.57B
• Dividend Yield: N/A
• Average Volume (3M): 5.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: 28.96%
• EPS Growth: 84.06%
• Country: US
• Employees: 3,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.15
• Shares Outstanding: 358,191,770
• 10 Day Avg. Volume: 6,556,550
• 30 Day Avg. Volume: 5,441,056
• PEG Ratio: 3.84
• Price to Book (P/B): 26.80
• Price to Sales (P/S): 22.93
• P/FCF Ratio: 257.00
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 11.15
• Enterprise Value/Gross Profit: 14.50
• Enterprise Value/Ebitda: 2.77K
• 1Y Price Target: $49.79
• Price Target Upside: 65.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 0.51
• Revenue Forecast (FY): $1.60B

• Rating: 63 Neutral
• Price Target: $33.00 ▲(9.56% Upside)

The score is primarily supported by solid financial quality for a growth company (high gross margins, improving losses, strong free cash flow, and low leverage) and a constructive earnings call with strong growth and margin guidance. Offsetting these strengths, technicals show a clear downtrend despite oversold readings, and valuation is weak/less informative due to negative earnings and no dividend yield.

Positive Factors

High gross margins

A 76.9% TTM gross margin reflects durable unit economics from software subscriptions and attach-rate hardware sales. High gross margins provide long-term operating leverage, funding product R&D and go-to-market expansion while insulating profitability from modest revenue swings.

Recurring ARR scale and enterprise wins

Growing $1.75B ARR at 29% YoY and record large-customer additions demonstrates sticky, subscription-driven revenue. Strong enterprise adoption increases revenue visibility, upsell potential, and retention, supporting sustainable cash flows and multi-year customer lifetime value.

Improving cash generation and low leverage

Solid 14.5% FCF growth and very low debt-to-equity provide financial flexibility for product investment and M&A without immediate refinancing risk. Reliable cash generation supports margin improvement and reduces solvency risk during industry cyclicality.

Negative Factors

Remaining GAAP profitability gap and negative ROE

Despite progress, negative net margin and a -7.97% ROE indicate the company has not yet converted revenue scale into sustained shareholder returns. Continued negative returns could limit capital allocation options and investor confidence until consistently positive ROE is achieved.

Slowing trailing revenue growth

TTM revenue growth of 6.6% marks a material deceleration versus prior growth phases, risking diminished operating leverage. Slower top-line expansion can pressure margin improvement timelines and makes investment in sales and product less immediately accretive to long-term profitability.

Sales-cycle variability on large deals

Extended, less predictable enterprise sales cycles increase ARR and revenue volatility and complicate forecasting. This structural variability can delay revenue recognition, increase working capital needs, and slow the cadence of scalable, repeatable growth from large-account penetration.

Samsara Business Overview & Revenue Model

Company Description

Samsara 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 Money

Samsara generates revenue primarily through a subscription-based model, where customers pay recurring fees for access to its IoT platform and services. Key revenue streams include hardware sales, such as GPS devices and sensors, and monthly or annual subscription fees for software services that include data analytics, real-time monitoring, and reporting tools. Additionally, Samsara benefits from long-term contracts with clients, which provide predictable revenue. The company also cultivates significant partnerships with businesses in various industries, enhancing its product offerings and expanding its market reach, thereby contributing to its overall earnings.

Samsara Financial Statement Overview

Summary

Strong gross margin (76.9% TTM) and improving profitability (net margin improved to -2.8% TTM) support the score. Cash flow is a key strength with solid free cash flow growth (14.5% TTM) and strong cash conversion, while the balance sheet is stable with very low leverage (debt-to-equity 0.058). The main constraint remains that profitability metrics are still negative and ROE is negative (-7.97% TTM).

Income Statement

Samsara's income statement shows a strong gross profit margin of 76.9% TTM, indicating efficient cost management. Revenue growth is positive at 6.6% TTM, although it has slowed compared to previous periods. The net profit margin remains negative, but has improved significantly from -12.4% to -2.8% TTM, reflecting a narrowing loss. EBIT and EBITDA margins are also negative, but show improvement, suggesting progress towards profitability.

Balance Sheet

The balance sheet reflects a solid equity position with a low debt-to-equity ratio of 0.058 TTM, indicating low financial leverage. However, the return on equity is negative at -7.97% TTM, highlighting ongoing profitability challenges. The equity ratio is strong, suggesting a stable financial structure despite the negative ROE.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth of 14.5% TTM, indicating improved cash generation. The operating cash flow to net income ratio is positive, reflecting better cash conversion. The free cash flow to net income ratio is high at 0.88 TTM, suggesting efficient cash management despite net losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.25B	937.38M	652.54M	428.35M	249.91M
Gross Profit	950.88M	690.35M	469.89M	303.86M	174.51M
EBITDA	-164.45M	-171.08M	-167.10M	-304.39M	-173.01M
Net Income	-154.91M	-286.73M	-247.42M	-355.02M	-210.21M
Balance Sheet
Total Assets	2.02B	1.73B	1.62B	1.57B	886.63M
Cash, Cash Equivalents and Short-Term Investments	694.80M	547.66M	689.86M	921.22M	399.89M
Total Debt	80.28M	99.49M	122.92M	144.96M	173.27M
Total Liabilities	955.11M	819.70M	678.99M	578.98M	1.42B
Stockholders Equity	1.07B	915.15M	938.02M	988.95M	-532.80M
Cash Flow
Free Cash Flow	111.48M	-22.77M	-136.26M	-190.83M	-203.87M
Operating Cash Flow	131.66M	-11.81M	-103.02M	-171.48M	-171.77M
Investing Cash Flow	-66.62M	-78.69M	-631.85M	-20.04M	-32.20M
Financing Cash Flow	27.10M	21.00M	14.21M	701.64M	401.97M

Samsara Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 30.12 is below the 20-day moving average (MA) of 33.79, below the 50-day MA of 36.84, and below the 200-day MA of 38.66, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 29.99 is Positive, neither overbought nor oversold. The STOCH value of 13.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IOT.

Samsara Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PANW	73 Outperform	$127.90B	116.54	15.33%	―	15.30%	-60.71%
FTNT	71 Outperform	$60.76B	33.79	228.04%	―	14.78%	22.52%
CRWD	66 Neutral	$120.17B	-371.37	-8.88%	―	22.05%	-341.24%
IOT	63 Neutral	$18.57B	―	-3.68%	―	28.96%	84.06%
ZS	62 Neutral	$34.21B	―	-2.41%	―	23.24%	-8.83%
NET	62 Neutral	$72.14B	-621.65	-8.88%	―	28.06%	-7.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Samsara Corporate Events

Samsara Executives Outline 2026 Insider Share Sale Plans

On January 6, 2026, Samsara announced that CEO and co-founder Sanjit Biswas and CTO and co-founder John Bicket had previously adopted pre-arranged stock trading plans on September 29, 2025, for affiliated family trusts as part of long-term asset diversification and liquidity strategies. Under these Rule 10b5-1 trading plans, the executives intend to sell up to approximately 5 million shares each between January 6 and December 24, 2026, with sales subject to Rule 144 volume limits and other plan conditions and to be reported through required SEC filings. As of January 1, 2026, the two executives collectively beneficially owned about 196.3 million shares, or 34.02% of Samsara’s outstanding stock, and even if all planned sales are completed, they would still hold roughly 186.3 million shares, or 32.29%, signaling continued significant insider ownership while attempting to minimize market impact and provide transparency around insider share sales.

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.