Samsara IOT shares have dropped 33.8% over the past month, significantly underperforming the broader Zacks Computer and Technology sector’s decline of 11.2%.

IOT has also underperformed the Zacks Internet - Software industry and peers like Arista Networks ANET and Blend Labs BLND. In the past month, Arista Networks and Blend Labs have seen declines of 18.1% and 10.3%, respectively, whereas the industry has fallen 14.6%.

Samsara’s share price decrease can be attributed to higher spending on sales and marketing to grow its customer base, raising concerns about profitability. This led to a fourth-quarter fiscal 2025 operating loss of $18.4 million. Intense competition in IoT and fleet management has negatively impacted the IOT stock’s performance.

However, the company's robust product portfolio and expanding customer base position it well to capitalize on the growing demand for digital transformation in IoT and fleet management.

Strong Multi-Product Platform Drives Success for IOT

Samsara's robust product portfolio strengthens its growth potential in the IoT and fleet management sectors. Its AI-driven dash cameras utilize computer vision to analyze road conditions and driver behavior in real time. This proactive system helps identify and reduce risks, improving overall fleet safety.

IOT's vehicle telematic solutions offer real-time GPS tracking, vehicle diagnostics and compliance management. These features enable fleet managers to optimize routes, monitor vehicle health and ensure adherence to regulatory standards.

Samsara provides monitoring and control solutions for various equipment, allowing businesses to track performance metrics, schedule maintenance, and prevent equipment failures. This leads to increased operational uptime and cost savings.

IOT's asset-tracking solutions, including the recently introduced Asset Tag, utilize Bluetooth technology to monitor the location and status of high-value assets such as toolboxes and specialized equipment. This helps reduce search times for misplaced items and simplifies inventory management. 

The adoption of multiple products has significantly expanded Samsara's data set, with more than 14 trillion data points processed in fiscal 2025, marking growth of more than 50% from the previous year. This vast data collection strengthens the platform’s ability to provide real-time insights and foster continuous innovation.

Diverse Customers & Partners Boost IOT Growth

Samsara ended the year with a strong fiscal fourth quarter for large customers. The company added 203 customers with annual recurring revenues exceeding $100,000, marking a quarterly high. It also secured 14 customers, surpassing $1 million in annual recurring revenues, matching its previous record. Samsara is attracting enterprise clients with the potential to exceed $10 million in annual recurring revenues at a faster pace.

A major food distributor, United Natural Foods UNFI, moves around 41,000 pounds of food daily. By leveraging Samsara’s Environmental Monitors, the company ensures food safety and minimizes waste from load loss. This initiative supports UNFI’s commitment to achieving zero waste in landfills by 2030.

In the fiscal fourth quarter, IOT strengthened its partnership with one of North America's largest do-it-yourself moving and storage companies. The operator manages nearly 200,000 trucks, 140,000 trailers and 250,000 portable storage boxes, with a network of more than 23,000 rental locations.

In the reported quarter, Samsara expanded its customer base with major industry leaders. The company secured one of the world's top three LTL carriers in the United States and Bimbo Bakeries, the largest commercial baking company in the country. These strategic wins reinforce IOT’s growing influence across multiple sectors.

Samsara’s 2026 Outlook Looks Promising

For the first quarter of fiscal 2026, Samsara projects revenues between $350 million and $352 million, indicating year-over-year growth of 25%.  The Zacks Consensus Estimate for revenues is pegged at $351.46 million, suggesting a 25.19% increase from the prior-year quarter’s actual.

Non-GAAP earnings are expected to be 5-6 cents per share. The consensus mark for earnings is pegged at 6 cents, which has inched up by a penny over the past 30 days. The consensus estimate indicates a year-over-year growth of 100%.

For fiscal 2026, Samsara projects revenues between $1.523 billion and $1.533 billion, indicating year-over-year growth of 22-23%. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $1.53 billion, suggesting a 22.47% increase from the prior-year quarter’s actual.

Non-GAAP earnings are expected to be 32-34 cents per share. The Zacks Consensus Estimate for earnings is pegged at 33 cents per share, which has moved up 17.9% over the past 30 days. The estimate indicates a 26.92% year-over-year increase.

IOT’s Zacks Rank

Samsara currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock now.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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