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Samsara, Inc. Class A (IOT)
NYSE:IOT
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Samsara
(NYSE:IOT)
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Rating:69Neutral
Price Target:
$45.00
▲(33.14% Upside)
Samsara's strong earnings call performance, including ARR growth and achieving GAAP profitability, significantly boosts its score. Financial performance shows improvement but remains a challenge due to ongoing unprofitability. Technical indicators suggest positive momentum, but caution is advised due to potential overbought conditions. Valuation is negatively impacted by the lack of profitability and dividend yield.
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
$20.95B
Dividend YieldN/A
Average Volume (3M)5.66M
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth28.96%
EPS Growth84.06%
CountryUS
Employees3,500
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.15
Shares Outstanding358,191,770
10 Day Avg. Volume3,644,462
30 Day Avg. Volume5,657,258
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 Cap1.09
Enterprise Value/Revenue15.02
Enterprise Value/Gross Profit19.53
Enterprise Value/Ebitda3.73K
Forecast
1Y Price Target
$50.54Price Target Upside49.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, 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 Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call highlights strong performance across key growth metrics, including ARR, profitability, and large customer acquisitions, alongside successful international expansion and emerging product contributions. However, concerns about sales cycle variability for large deals and external tariff pressures were noted.Q3-2026 Updates
Positive Updates
Strong ARR Growth
Samsara achieved $1.75 billion in ARR, growing 29% year-over-year, and added 219 customers with $100,000 plus in ARR, a quarterly record.
First Quarter of GAAP Profitability
Samsara reported its first quarter of GAAP profitability, indicating strong financial health and operational efficiency.
Growth in Large Customers
The company added 17 $1 million-plus ARR customers and highlighted significant partnerships with large enterprises, contributing to a 36% year-over-year growth in $100,000-plus ARR customers.
International Expansion
International markets showed strong growth, with Europe achieving its highest net new ACV mix and accelerating for the second consecutive quarter.
Emerging Products Success
20% of net new ACV came from emerging products launched since last year, with Asset Tags ARR growing more than 400% year-over-year.
AI-Powered Innovations
Introduction of new AI-powered coaching features and AI Multicam, enhancing customer engagement and safety outcomes.
Negative Updates
Longer Sales Cycles for Large Deals
Larger deals have longer and less predictable sales cycles, which could introduce more variability into quarterly ARR results.
Tariff Concerns
New tariffs on foreign trucks and parts were discussed, though the impact on customer behavior was minimal.
Company Guidance
During Samsara's Third Quarter Fiscal 2026 earnings call, the company provided guidance for the upcoming quarter and fiscal year. For Q4, Samsara expects revenue between $421 million and $423 million, representing a 22% year-over-year growth, or 21% in constant currency. The non-GAAP operating margin is projected to be 16%, with non-GAAP EPS between $0.12 and $0.13. For the full fiscal year 2026, the company anticipates revenue between $1.595 billion and $1.597 billion, marking a 28% year-over-year increase. The non-GAAP operating margin is expected to be 16%, and the non-GAAP EPS is projected to be between $0.50 and $0.51. Samsara also highlighted its recent achievements, including ending Q3 with $1.75 billion in Annual Recurring Revenue (ARR), growing 29% year-over-year, and achieving its first quarter of GAAP profitability. The company added a record 219 customers with over $100,000 in ARR and tied a quarterly record with 17 customers exceeding $1 million in ARR.Samsara Financial Statement Overview
Summary
Samsara shows strong revenue growth and improving profitability metrics, though it remains unprofitable. The balance sheet is solid with low leverage, and cash flow metrics indicate effective cash management. Continued focus on reducing losses and enhancing cash flow is crucial.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
Negative
33.80
Price Trends
38.39
Negative
38.02
Negative
38.96
Negative
Market Momentum
-1.28
Positive
36.02
Neutral
36.83
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 33.8 is below the 20-day moving average (MA) of 37.65, below the 50-day MA of 38.39, and below the 200-day MA of 38.96, indicating a bearish trend. The MACD of -1.28 indicates Positive momentum. The RSI at 36.02 is Neutral, neither overbought nor oversold. The STOCH value of 36.83 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $135.15B | 121.02 | 15.33% | ― | 15.30% | -60.71% | |
71 Outperform | $59.51B | 32.14 | 228.04% | ― | 14.78% | 22.52% | |
69 Neutral | $20.95B | -450.67 | -3.68% | ― | 28.96% | 84.06% | |
66 Neutral | $120.73B | -367.16 | -8.88% | ― | 22.05% | -341.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $71.04B | -628.65 | -8.88% | ― | 28.06% | -7.44% | |
60 Neutral | $36.86B | -839.63 | -2.41% | ― | 23.24% | -8.83% |
* Technology Sector Average
IOT
Samsara
33.80
-9.98
-22.80%
FTNT
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78.05
-16.51
-17.46%
PANW
Palo Alto Networks
190.80
17.38
10.02%
ZS
Zscaler
220.32
30.34
15.97%
CRWD
CrowdStrike Holdings
463.87
115.03
32.98%
NET
Cloudflare
186.96
74.34
66.01%
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.