Samsara, Inc. Class A (IOT)
NYSE:IOT
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Samsara
(NYSE:IOT)
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Rating:77Outperform
Price Target:
$40.00
▲(30.63% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by improving fundamentals (positive net income, strong and growing free cash flow, and low leverage) and a supportive earnings outlook with raised guidance and continued profitability expectations. Technicals add support with price above key moving averages and positive momentum. The main offset is valuation risk from an extremely high P/E and no dividend yield support.
Positive Factors
Large and growing ARR scale
Arriving at roughly $2.0B ARR with 30% YoY growth and accelerating net new ARR demonstrates a durable subscription base. Large, growing ARR provides predictable recurring revenue, improves forecasting visibility, and supports multi-year cash flow compounding that underpins long-term investment and scale.
Negative Factors
Operational AI monetization risk
Emerging AI and agent offerings are still early-stage with customers described as "very early" adopters. This creates execution and timing risk: material monetization may lag, requiring continued investment and sales effort, and could delay expected revenue diversification and margin benefits.
Read all positive and negative factors
Positive Factors
Negative Factors
Large and growing ARR scale
Arriving at roughly $2.0B ARR with 30% YoY growth and accelerating net new ARR demonstrates a durable subscription base. Large, growing ARR provides predictable recurring revenue, improves forecasting visibility, and supports multi-year cash flow compounding that underpins long-term investment and scale.
Read all positive factors
Samsara (IOT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.52B
Dividend YieldN/A
Average Volume (3M)5.32M
Price to Earnings (P/E)352.1
Beta (1Y)1.42
Revenue Growth29.60%
EPS GrowthN/A
CountryUS
Employees3,500
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.10
Shares Outstanding370,981,100
10 Day Avg. Volume6,277,168
30 Day Avg. Volume5,317,222
Financial Highlights & Ratios
PEG Ratio18.71
Price to Book (P/B)11.32
Price to Sales (P/S)9.94
P/FCF Ratio77.54
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue11.45
Enterprise Value/Gross Profit15.02
Enterprise Value/Ebitda717.44
Forecast
1Y Price Target
$43.23Price Target Upside41.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)0.68
Revenue Forecast (FY)$1.97B
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 enric...
How the Company Makes Money
Samsara primarily makes money by selling subscriptions to its cloud-based software platform (software-as-a-service), typically contracted on a recurring basis, and by selling or bundling the associated connected hardware devices that generate and ...
Samsara Earnings Call Summary
Earnings Call Date:Jun 04, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
The call portrayed a strong operational and financial quarter with durable ARR and revenue growth, expanding enterprise account base, robust multiproduct adoption, meaningful contribution from emerging products, and consecutive GAAP profitability — all supporting an upgraded full-year outlook. Counterbalancing risks include near-term gross margin pressure from AI/cloud investments, supply-chain and component cost uncertainty, early-stage monetization risk for operational AI, and potential volatility from large deal timing. Overall, positives substantially outweigh the highlighted challenges.Positive Updates
Strong ARR Scale and Growth
Ending Q1 ARR approximately $2.0B, up 30% year-over-year; net new ARR of $101M in Q1, up 30% YoY (27% in constant currency); LTM net new ARR $455M, up 27% YoY (25% CC) and accelerating for the fourth consecutive quarter.
Negative Updates
Gross Margin Pressure from AI and Cloud Investments
Reported gross margin declined ~200 basis points year-over-year, attributed to increased AI and cloud spending; management expects to offset some COGS increases with optimizations and keep gross margins roughly flat for FY'27, but near-term pressure exists.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong ARR Scale and Growth
Ending Q1 ARR approximately $2.0B, up 30% year-over-year; net new ARR of $101M in Q1, up 30% YoY (27% in constant currency); LTM net new ARR $455M, up 27% YoY (25% CC) and accelerating for the fourth consecutive quarter.
Read all positive updates
Company Guidance
Management gave derisked guidance (FX as of May 2) for Q2 and FY‑2027: Q2 revenue $482–$484M (growth of 23–24% YoY, or 22–23% in constant currency), non‑GAAP operating margin of 18%, non‑GAAP EPS $0.15–$0.16, and expected GAAP profitability for the quarter; full‑year FY‑27 revenue $2.005–$2.013B (≈24% YoY, or 23–24% in constant currency), non‑GAAP operating margin of 20%, non‑GAAP EPS $0.70–$0.72, and expected GAAP profitability for the year.Samsara Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.73B | 1.62B | 1.25B | 937.38M | 652.54M | 428.35M |
| Gross Profit | 1.32B | 1.24B | 950.88M | 690.35M | 469.89M | 303.86M |
| EBITDA | 27.63M | -28.53M | -164.45M | -171.08M | -167.10M | -304.39M |
| Net Income | 57.51M | -9.12M | -154.91M | -286.73M | -247.42M | -355.02M |
Balance Sheet | ||||||
| Total Assets | 2.61B | 2.54B | 2.02B | 1.73B | 1.62B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 804.32M | 833.79M | 694.80M | 547.66M | 689.86M | 921.22M |
| Total Debt | 69.02M | 72.77M | 80.28M | 99.49M | 122.92M | 144.96M |
| Total Liabilities | 1.11B | 1.12B | 955.11M | 819.70M | 678.99M | 578.98M |
| Stockholders Equity | 1.51B | 1.42B | 1.07B | 915.15M | 938.02M | 988.95M |
Cash Flow | ||||||
| Free Cash Flow | 234.93M | 207.44M | 111.48M | -22.77M | -136.26M | -190.83M |
| Operating Cash Flow | 265.01M | 236.21M | 131.66M | -11.81M | -103.02M | -171.48M |
| Investing Cash Flow | -320.43M | -189.53M | -66.62M | -78.69M | -631.85M | -20.04M |
| Financing Cash Flow | -4.15M | 29.93M | 27.10M | 21.00M | 14.21M | 701.64M |
Samsara Technical Analysis
Positive
30.62
Price Trends
30.54
Positive
30.27
Positive
34.15
Positive
Market Momentum
1.67
Negative
60.17
Neutral
74.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOT, the sentiment is Positive. The current price of 30.62 is below the 20-day moving average (MA) of 31.50, above the 50-day MA of 30.54, and below the 200-day MA of 34.15, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $228.83B | 241.54 | 15.49% | ― | 19.51% | -33.05% | |
77 Outperform | $20.52B | 352.06 | -0.72% | ― | 29.60% | ― | |
77 Outperform | $109.66B | 54.69 | 155.65% | ― | 15.75% | 6.24% | |
76 Outperform | $190.29B | ― | -4.15% | ― | 23.17% | 73.54% | |
69 Neutral | $94.96B | -1,016.77 | -6.23% | ― | 31.55% | -4.50% | |
68 Neutral | $21.73B | ― | -3.71% | ― | 24.61% | -91.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IOT
Samsara
34.80
-10.30
-22.84%
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Samsara Corporate Events
Regulatory Filings and Compliance
Samsara Files Procedural Amendment to Corporate Bylaws
Neutral
Jun 1, 2026
Samsara filed a brief regulatory statement indicating that information previously disclosed under another section is being incorporated by reference into an additional section of its filing. This appears to be a procedural legal clarification with...
Business Operations and StrategyRegulatory Filings and Compliance
Samsara Shareholders Approve Reincorporation From Delaware to Nevada
Neutral
May 1, 2026
On April 29, 2026, Samsara Inc. said a group of major stockholders holding about 76.7% of the company’s voting power approved by written consent a plan to reincorporate the company from Delaware to Nevada. The move will be implemented via a ...
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.