Samsara Inc. (IOT) ended the recent trading session at $24.72, demonstrating a -7.73% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.04%. Elsewhere, the Dow saw a downswing of 1.66%, while the tech-heavy Nasdaq depreciated by 1.13%. Coming into today, shares of the company had lost 16.54% in the past month. In that same time, the Computer and Technology sector gained 0.34%, while the S&P 500 gained 1.75%. The investment community will be close ...

Group 1 - Samsara Inc. is recognized as one of the 10 Best Consensus Buy-Rated Stocks to Invest in, with a Buy rating initiated by Goldman Sachs and a price target of $36, highlighting it as a defensible growth asset in the software sector [1][7] - RBC Capital has lowered its price target for Samsara to $35 from $46 but maintains an Outperform rating, citing negative investor sentiment towards software and a preference for companies with clearer AI monetization paths [2] - Piper Sandler has also reduced its price target for Samsara to $37 from $49 while keeping an Overweight rating, indicating potential favorable responses to earnings despite current muted sentiment in the software market [3] Group 2 - Samsara provides a platform that integrates IoT devices with cloud-based software, enabling the analysis of physical operations data and incorporating AI, workflows, analytics, alerts, APIs, and data security capabilities [4]

Core Insights - Samsara is enhancing its Connected Operations Platform by integrating artificial intelligence to improve workflow applications, security, analytics, and data enrichment [1][10] Group 1: AI Enhancements - The company has introduced Samsara Assistant for conversational assistance and Samsara Intelligent Experiences for AI-based insights [2] - Samsara processes over 20 trillion operational data points from its IoT devices to train and enhance its AI models [2] - These AI enhancements lead to more accurate predictions, smarter automation, and improved safety outcomes, solidifying Samsara's industry leadership [3] Group 2: Customer Growth and Financial Metrics - In Q2 of fiscal 2026, Samsara added 133 new customers with over $100K in annual recurring revenue (ARR), bringing the total to 2,771 [3][10] - The company has more than 147 customers contributing over $1 million in ARR, with 164 customers surpassing this threshold, representing over 20% of total ARR [4] - The dollar-based net retention rate among core customers is approximately 115%, indicating strong engagement and expansion potential [5] Group 3: Competitive Landscape - Samsara operates in a competitive connected operations market, facing rivals such as Motive, Lytx, Trimble, Verizon, and Geotab [6] - Trimble's AI offerings in construction and logistics directly compete with Samsara's services [7] Group 4: Stock Performance and Valuation - Samsara's shares have declined by 57.1% over the past year, underperforming the Zacks Internet - Software industry's decline of 11.3% [8][10] - The company trades at a forward price-to-sales ratio of 7.81, significantly higher than the industry average of 3.87 [12] - The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings indicates year-over-year growth of 96.2% and 12.9%, respectively [15]

Core Insights - Samsara Inc. (IOT) shares have decreased by 57.1% over the past year, significantly underperforming the Zacks Internet - Software industry's decline of 20.1% and the Zacks Computer and Technology sector's return of 18.1% [1] - Despite the decline in share price, Samsara is trading at a premium valuation with a forward price-to-sales ratio of 7.81, compared to the industry's 3.87, and holds a Zacks Value Score of F [4] Company Performance - Samsara has gained from the adoption of its Connected AI Platform, adding 133 new customers with annual recurring revenue (ARR) exceeding $100K, totaling 2,771 in Q2 FY26 [8] - The company ended Q2 FY26 with over 147 customers contributing $1 million in ARR [9] - Samsara is positioned to benefit from the global shift towards Industry 4.0, integrating digital technologies into manufacturing, industrial, and transport processes [9] Market Dynamics - The fleet management market, where Samsara operates, is projected to grow at a CAGR of 13.3% from 2025 to 2030 [10] - Samsara is enhancing its platform capabilities by integrating artificial intelligence, including features like Samsara Assistant and Samsara Intelligent Experiences [11] - The company processes over 20 trillion operational data points to improve its AI models, which helps in delivering accurate predictions and reducing customer churn [12] Competitive Landscape - Samsara faces strong competition in the vehicle telematics market from companies like Motive, Lytx, Verizon, Trimble, and Geotab, as well as in the industrial IoT space from PTC [13] - Despite a robust non-GAAP gross margin of 78% in Q2 FY26, the non-GAAP operating margin was only 19%, indicating pressure from rising competition [15] - The Zacks Consensus Estimate for Samsara's Q3 FY26 earnings suggests an 18.8% growth, with net margins expected to hover around breakeven [15] Strategic Outlook - The video telematics market remains underpenetrated, presenting an opportunity for Samsara to capture significant market share despite competition from Trimble and Verizon [16] - The company has recently turned profitable, validating its business strategy, and is recommended to be held as a Zacks Rank 3 (Hold) stock [17]

Core Viewpoint - Samsara Inc. (NYSE:IOT) is identified as one of the best beaten-down growth stocks to buy, with a significant upside potential despite a recent target price cut by Piper Sandler [1]. Group 1: Investment Sentiment - Piper Sandler reduced its target price for Samsara by 24.4% to $37 from $49 but maintained an Overweight rating, citing low investor sentiment in software stocks [1]. - The firm believes that Samsara's operational budget stickiness provides a competitive advantage against the impact of artificial intelligence on software companies [1]. - Other firms, such as BTIG and RBC Capital, echo the sentiment that Samsara is well-positioned for enterprise AI adoption and will benefit from AI trends in 2026 [2]. Group 2: Financial Projections - RBC Capital noted that Samsara's management guidance for Q4-2026 revenue is conservative, expecting between $421 million and $423 million, compared to a consensus of $419.2 million [3]. - The company is projected to achieve mid-20s growth in the upcoming year, supported by de-risked financial forecasts [1]. Group 3: Company Overview - Samsara Inc. develops cloud-based sensor systems that integrate plug-and-play sensors, internet connectivity, and cloud-based software, and was founded in 2015 in San Francisco [4].

Company Overview - Samsara Inc. specializes in providing Internet of Things (IoT) solutions, focusing on connecting physical operations to the cloud to enhance operational efficiency and safety [1] Stock Performance - On February 11, 2026, Goldman Sachs set a price target of $36 for Samsara, indicating a potential increase of about 29.03% from the current stock price of $27.90, which reflects a 2.46% rise from the previous day [2][6] - Despite recent positive performance, Samsara's shares had previously declined by 18.62%, underperforming the Computer and Technology sector, which lost 1.09% [3] Market Dynamics - Samsara's market capitalization is approximately $15.9 billion, with a trading volume of 10,727,996 shares on the NYSE [5] - The stock has fluctuated between a low of $27.35 and a high of $28.21, indicating investor interest and market dynamics in the competitive IoT landscape [5] Earnings Expectations - Investors are anticipating Samsara's upcoming earnings report on March 5, 2026, with expected earnings of $0.13 per share, representing an 18.18% increase from the previous year [4] - The consensus estimate for quarterly revenue is $422.09 million, indicating a 21.89% rise compared to the same period last year, showcasing strong growth potential [4]

Company Overview - Samsara Inc. is a San Francisco-based Internet of Things company focused on telematics and data-driven insights for physical operations, serving customers across North America and Europe [4] - Founded in 2015, the company benefits from secular demand for digitization, automation, and AI-enabled efficiency in industries such as logistics, construction, and fleet management, supporting a durable long-term growth outlook despite near-term volatility [4] Financial Performance - In the third quarter of fiscal 2026, Samsara reported annual recurring revenue of $1.75 billion, representing a 29% year-over-year growth [3] - The company added a record 219 customers generating more than $100,000 in annual recurring revenue [3] Market Sentiment - BNP Paribas upgraded Samsara to Outperform from Neutral while maintaining its $40 price target, citing a more attractive risk/reward profile following a "tough year" for the stock [1] - The upgrade reflects growing confidence that recent share price pressure has better aligned valuation with the company's long-term fundamentals, setting the stage for improved performance as execution stabilizes [1] Product Innovation - Product innovation remains a key driver for Samsara, with new AI-powered coaching tools and the AI Multicam solution gaining traction by improving safety outcomes and deepening customer engagement across its platform [3]

Core Viewpoint - Samsara Inc. has experienced a significant decline in stock price recently, with a notable drop of 5.85% in the latest trading session, and a total loss of 17.31% over the past month, contrasting with gains in the broader market indices [1][2]. Financial Performance - The upcoming earnings report for Samsara Inc. is projected to show an EPS of $0.13, reflecting an 18.18% increase year-over-year, with revenue expected to reach $422.09 million, up 21.89% from the same quarter last year [2]. - For the full year, earnings are estimated at $0.51 per share, indicating a substantial increase of 96.15%, while revenue is projected to remain stable at $1.6 billion, showing no growth compared to the previous year [3]. Analyst Sentiment - Recent changes in analyst estimates for Samsara Inc. suggest a positive outlook, with revisions indicating optimism about the company's business and profitability [3]. - The Zacks Rank system currently rates Samsara Inc. as 1 (Strong Buy), reflecting a favorable consensus among analysts [5]. Valuation Metrics - Samsara Inc. has a Forward P/E ratio of 55.15, which is significantly higher than the industry average of 22.53, indicating a premium valuation [6]. - The company also has a PEG ratio of 1.25, which is slightly below the industry average PEG ratio of 1.29, suggesting that the stock is reasonably valued in relation to its expected earnings growth [6]. Industry Context - The Internet - Software industry, which includes Samsara Inc., is ranked 83 in the Zacks Industry Rank, placing it in the top 34% of over 250 industries, indicating a strong performance relative to peers [7].

Core Viewpoint - Samsara Inc. will release its financial results for the fourth quarter of fiscal year 2026 on March 5, 2026, after U.S. market close, and will host a live webcast to discuss these results [1][2]. Group 1: Financial Results Announcement - The financial results for the fourth quarter of fiscal year 2026 will be announced after the market closes on March 5, 2026 [1]. - A live webcast will take place at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) on the same day to discuss the results [2]. Group 2: Company Overview - Samsara is a pioneer of the Connected Operations Platform, which connects people, devices, and systems to improve operational insights [3]. - The company serves tens of thousands of customers across various industries, including transportation, construction, logistics, and healthcare, aiming to enhance safety, efficiency, and sustainability [3].

Core Insights - Samsara operates in a rapidly growing logistics industry, projected to grow at an 8.36% CAGR through 2034, yet its stock has declined by 33% over the past year despite strong fundamentals [1][3]. Company Performance - Samsara's annual recurring revenue (ARR) for Q3 reached $1.75 billion, reflecting a 29% increase compared to Q3 2025 [8]. - The company's net revenue for Q3 was $416 million, up 20% from Q3 2025, with net new ARR of $105 million, a 24% increase [9]. - Samsara has nearly 3,000 customers paying over $100,000 in ARR, and 164 customers paying over $1 million [8]. - The company maintains net cash reserves of $275.1 million against total debt of $75.6 million, indicating strong financial management [9]. - Operating margin stands at 19%, up 9% year over year, and free cash flow margin is at 13%, up 4% from Q3 2025 [10]. Industry Context - The logistics sector faces inefficiencies leading to driver burnout and wasted resources, which AI can help address [2]. - Samsara's software aids various sectors, including logistics and construction, in optimizing fleet management and safety [5][6]. - Notable results from clients include a 50% reduction in driver turnover for DHL and an 81% reduction in collision risk for the city of New Orleans after adopting Samsara [7].