Bull of the Day: Samsara (IOT)
Samsara (IOT), a Zacks Rank #1 (Strong Buy), operates a cloud-based IoT platform that connects vehicles, equipment, and facilities through sensors, helping businesses track, monitor, and optimize their physical operations in real time.
The stock has pulled back with the market after a solid earnings beat that helped the stock erase 2026 losses. After some consolidation, current levels are giving investors a nice opportunity to enter one of the most compelling long-term growth stories in the industrial technology space.
About the Company
Samsara serves a wide range of asset-intensive industries including logistics, construction, utilities, and field services. Its platform addresses critical operational needs across fleet tracking, driver safety, asset monitoring, regulatory compliance, and operations analytics.
What makes Samsara's model attractive is its high recurring revenue base and strong revenue visibility. Once embedded in a customer's operations, the platform becomes deeply mission-critical, driving low churn and expanding wallet share over time. The company now serves customers across multiple verticals with a growing suite of connected products, and multi-product adoption is accelerating.
IOT is valued at $19 billion and has a Forward PE of 47. The stock has Zacks Style Scores of “F” in Value, but “A” in Growth.
Q4 Earnings Beat
Samsara delivered a strong fourth-quarter beat, coming in 38% above EPS expectations. Revenue reached $444 million versus the $422 million consensus, representing continued momentum in a challenging macro environment for industrial spending.
Annual Recurring Revenue hit $1.89 billion, up 30% year-over-year, with $432 million in net new ARR added in the quarter. Notably, this marks three consecutive quarters of accelerating net new ARR growth.
Guidance was constructive across the board. For Q1, the company sees revenue of $454–456 million versus the $445 million consensus, implying 24% year-over-year growth. The bigger story was the full-year fiscal 2027 outlook: revenue guidance of $1.97 billion topped the $1.91 billion consensus, with EPS guided to $0.65–0.69 versus the $0.57 expected.
Management also outlined a path to 19% operating margins. This is a signal that this is no longer just a growth story, but an increasingly profitable and scalable one.
Estimates Head Higher
Analyst estimates have been moving steadily higher in the wake of earnings. For the current year, estimates have risen from $0.57 to $0.68 over the past 30 days. Next year's estimates have moved from $0.71 to $0.84 over the same period, an 18% increase.
On the analyst front, the institutional community remains broadly bullish. Wells Fargo, Piper Sandler, and Keybanc all reiterate Overweight ratings with price targets ranging from $39 to $46. Goldman Sachs reiterates a Buy and raised its target to $41 from $36.
The AI and Data Moat
One of the most underappreciated elements of the Samsara story is the scale of its data infrastructure. The platform now processes 25 trillion data points annually, which is a figure that creates a compounding competitive advantage as the company deploys AI across its product suite.
AI is becoming central to the platform narrative. Products like Safety Coach use this data to deliver real-time driver coaching and risk scoring, and management has outlined a roadmap toward broader automation agents built on top of this foundation. The more data the platform ingests, the smarter and more differentiated the AI layer becomes.
The Technical Take
The stock started trending upward early in 2023, moving from under $10 to $61 early in 2025. Since then the stock had dropped about 50% and started to consolidate around the $30-35 level.
The cloud related sell off took the stock down to three-year lows early this year, but it has rallied since reporting earnings.
The stock is sensitive to moving averages and trades well off those MA’s. Let us look at those levels:
21-day: $32.20
50-day: $29.70
200-day: $35.50
The bulls will want to get price above that 200-day and the Fibonacci resistance level at $38. If that level is broken and price holds above $40 long term Fibonacci extension targets indicate price targets at $60.
In Summary
Samsara is executing at a high level across every dimension that matters for a long-term platform investment: accelerating ARR growth, expanding margins, improving profitability, and a widening AI-driven data moat.
The story is evolving from pure hypergrowth to profitable, scalable growth. With a Zacks Rank #1, rising estimates, and broad analyst support, IOT is a name that belongs on every growth investor's radar.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Samsara Inc. (IOT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
