tiprankstipranks
Trending News
More News >
Samsara (IOT)
NYSE:IOT
US Market

Samsara (IOT) AI Stock Analysis

Compare
1,175 Followers

Top Page

IO

Samsara

(NYSE:IOT)

Rating:66Neutral
Price Target:
$42.00
▲(7.39%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
Innovation
The accelerating innovation engine and long-term growth potential of Samsara are highlighted as reasons for increased confidence in the company.
Market Position
The company's sustained momentum and growth at scale is considered a rare achievement in today's software landscape, enabled by strong, quantifiable ROI and rapid time to value.
Product Development
Samsara launched a record number of new products and capabilities across Safety, Maintenance, and Frontline Worker Productivity, highlighting the power of their data and network flywheels.
Negative Factors
Market Misinterpretation
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, multiclass ownership structure, and data security.

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

Samsara Business Overview & Revenue Model

Company DescriptionSamsara is a leading provider in the Internet of Things (IoT) sector, specializing in offering solutions for fleet management, industrial operations, and logistics. The company develops a comprehensive IoT platform that combines hardware, software, and cloud technology to help businesses improve the efficiency, safety, and sustainability of their operations. Samsara's core products include vehicle telematics, driver safety tools, and industrial process monitoring systems, which enable real-time data collection and insights for enhanced decision-making.
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: -17.23%|
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 demonstrates strong revenue growth of 33% and a robust gross profit margin of 76.1%, indicating efficient cost management. However, the company remains unprofitable with a negative net profit margin of -12.4%. The balance sheet is stable with a low debt-to-equity ratio of 0.08, and cash flows are improving with positive operating and free cash flow.
Income Statement
85
Very Positive
Samsara has shown strong revenue growth, with a substantial increase of approximately 33% in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin is robust at 76.1% for TTM, reflecting efficient cost management. However, the company remains unprofitable with a negative net profit margin of -12.4%, though there's been an improvement from past periods. The EBIT and EBITDA margins remain negative, indicating ongoing operational challenges.
Balance Sheet
70
Positive
The company maintains a healthy equity position with an equity ratio of 52.8% and a solid return on equity improvement to -14.5% in TTM, which, while negative, shows progress. The debt-to-equity ratio is relatively low at 0.08, indicating low financial leverage. However, the negative net income impacts overall profitability.
Cash Flow
78
Positive
Samsara's cash flow position is strengthening, evidenced by positive operating cash flow of $131.7 million in TTM. The free cash flow has improved significantly, shifting from negative to a positive $111.5 million. The operating cash flow to net income ratio indicates better cash management, though free cash flow generation remains a challenge.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue937.38M1.25B937.38M652.54M428.35M249.91M
Gross Profit690.35M950.88M690.35M469.89M303.86M174.51M
EBITDA-242.80M-164.45M-234.39M-259.45M-341.93M-185.21M
Net Income-286.73M-154.91M-286.73M-247.42M-355.02M-210.21M
Balance Sheet
Total Assets1.73B2.02B1.73B1.62B1.57B886.63M
Cash, Cash Equivalents and Short-Term Investments547.66M694.80M547.66M689.86M921.22M399.89M
Total Debt99.49M80.28M99.49M122.92M144.96M173.27M
Total Liabilities819.70M955.11M819.70M678.99M578.98M1.42B
Stockholders Equity915.15M1.07B915.15M938.02M988.95M-532.80M
Cash Flow
Free Cash Flow-22.77M111.48M-22.77M-136.26M-190.83M-203.87M
Operating Cash Flow-11.81M131.66M-11.81M-103.02M-171.48M-171.77M
Investing Cash Flow-78.69M-66.62M-78.69M-631.85M-20.04M-32.20M
Financing Cash Flow21.00M27.10M21.00M14.21M701.64M401.97M

Samsara Technical Analysis

Technical Analysis Sentiment
Negative
Last Price39.11
Price Trends
50DMA
42.58
Negative
100DMA
42.68
Negative
200DMA
45.77
Negative
Market Momentum
MACD
-1.25
Positive
RSI
40.94
Neutral
STOCH
31.14
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 39.11 is below the 20-day moving average (MA) of 40.52, below the 50-day MA of 42.58, and below the 200-day MA of 45.77, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 31.14 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$24.23B29.5330.92%6.40%6.49%
73
Outperform
$20.06B1,777.39-5.36%35.12%-191.84%
ZSZS
72
Outperform
$49.01B-2.68%25.46%49.20%
NENET
69
Neutral
$66.30B-7.35%27.79%56.19%
IOIOT
66
Neutral
$22.27B-11.77%31.72%57.55%
65
Neutral
$17.35B153.872.08%13.51%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IOT
Samsara
39.11
2.98
8.25%
CHKP
Check Point
223.63
54.23
32.01%
CYBR
CyberArk Software
398.76
125.37
45.86%
OKTA
Okta
99.11
1.06
1.08%
ZS
Zscaler
314.77
113.14
56.11%
NET
Cloudflare
191.27
106.39
125.34%

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