Start here if you're new
what it is
Samsara sells software that helps businesses track trucks, drivers, and equipment in real time.
how it gets paid
Last year Samsara made $1.2B in revenue. Fleet management was the main engine at $0.6B, or 50% of sales.
why it's growing
Revenue grew 33.3% last year. The $0.04 EPS print mattered because it beat the $0.01 estimate and delivered a 300% surprise.
what just happened
Samsara posted a $0.04 EPS result against a $0.01 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
348.9x trailing p/e — you're paying up for this one
19.0% return on capital — nothing to write home about
xvary composite: 42/100 — below average
$0.10 fy2026 eps est
What they do
Samsara sells software that helps businesses track trucks, drivers, and equipment in real time.
3,500 employees sell one system for trucks, drivers, and gear. That is sticky because your dispatch logs, safety alerts, and maintenance records sit in one place. Samsara says ARR reached $1.9B, up 30%, so the base is getting bigger while customers are still paying up.
How they make money
$1.2B
annual revenue · their business grew +33.3% last year
Fleet management
$0.6B
Safety and compliance
$0.4B
Asset tracking and maintenance
$0.2B
The products that matter
fleet tracking and compliance
Vehicle Telematics
inside the $1.2B subscription base
the snapshot does not break out exact segment revenue, but this sits inside the $1.2B subscription business that grew 30%. It is still the front door for a lot of customer relationships.
core workflow
AI dash cams and monitoring
Video-Based Safety
supported by 77% gross margin
this product set helps justify the premium software narrative. We do not get a standalone revenue figure here, but it sits inside a business producing 77% gross margin and $1.9B of ARR.
margin story
equipment and site monitoring
Asset Tracking
expansion product, data thin
newer hardware like Asset Tag XS matters because it widens the addressable use case, but this snapshot does not provide segment dollars. What we can say is that hardware and other revenue was $400M and flat.
cross-sell angle
Key numbers
$1.2B
annual revenue
This is the size of the business you are buying today.
77.0%
gross margin
That leaves plenty of room before operating costs eat the meal.
348.9x
trailing P/E
You are paying a luxury price for tiny profits.
1.75
beta
The stock swings more than the market.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $63M (0% of capital)
- net profit margin 23.4% — keeps 23 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for IOT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Samsara posted a $0.04 EPS result against a $0.01 estimate.
Revenue held at $444.3M for the quarter, and the company kept gross margin near 77.0%. The beat was small in dollars, but large in percentage terms.
$444.3M
revenue
$0.04
eps
77.0%
gross margin
the number that mattered
The $0.04 EPS print mattered because it beat the $0.01 estimate and delivered a 300% surprise.
-
samsara reported favorable comparisons for the recent period.
-
revenues advanced roughly 29%, from a year ago.
-
earnings per share of $0.01 was a nice improvement from the prior-year deficit.
-
customers representing annual recurring revenue of more than $100,000 increased by roughly 8% during the period, to 2,990.
-
comparisons likely remained favorable for the december period.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a premium valuation resting on future margin expansion.
med
multiple compression
IOT trades at 11.3x sales versus a 3.4x industry average. That gap is the whole argument for why Samsara deserves special treatment.
If growth cools before profitability clearly scales, the valuation gap becomes the problem, not the opportunity.
med
margin story stalls
A 77% gross margin is excellent. A 3.1% net margin is not. Operating expenses still eat almost all of the software economics investors are paying for.
This stock can handle thin profits for a while. It cannot handle thin profits forever at 11.3x sales.
med
large-customer dependence
$1.2B of ARR comes from customers spending over $100k annually. That is a strength until a few big budgets pause at once.
When enterprise customers slow purchasing, premium software stocks usually feel it before the income statement fully prints it.
med
motive litigation overhang
The trade-secret dispute with Motive is not framed here as a direct financial hit today, but it is still a live distraction in a competitive market.
Legal noise rarely helps a premium multiple. Even when the direct dollars stay small, management attention is not free.
77% gross margin and 30% ARR growth make the story easy to like. A 3.1% net margin and 11.3x sales make the stock easy to punish if execution slips.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
large-customer ARR growth
$1.2B from $100k+ customers grew 37%, faster than total ARR at 30%. If that spread narrows, the enterprise expansion story is losing torque.
calendar
Q1 FY2027 earnings
The next report matters because investors need to see whether the $1.6B revenue base can keep compounding near the current pace.
trend
gap between gross and net margin
77% gross margin with a 3.1% net margin is the contradiction at the center of the stock. You want to see that gap close, not stay philosophical.
risk
valuation versus industry sales multiples
11.3x sales versus a 3.4x industry average is a wide spread. The company does not need to be perfect, but it does need to stay obviously better.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think the next 12 months could be bumpier than the average stock.
risk profile
below average
stability score 4 — more volatile than most, which fits a company with a 5 / 100 price stability score.
chart momentum
average
technical score 3 — no special signal here. The chart is not rescuing the valuation debate.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 308 buyers vs. 217 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$29
$85
$35
current price
$57
target midpoint · +63% from current · 3-5yr high: $55 (+60% · 12% ann'l return)
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