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1. Company Snapshot

1.a. 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 enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy; and applications for video-based safety, vehicle telematics, apps and driver workflows, equipment monitoring, and site visibility.


It serves customers across a range of industries, including transportation and logistics, construction, field services, utilities and energy, government, healthcare and education, manufacturing, wholesale and retail trade, and food and beverage.The company was incorporated in 2015 and is based in San Francisco, California.

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1.b. Last Insights on IOT

Breaking News: Samsara Inc recently did not have an earnings release that was reported on. However UnitedHealth Group and its peers Cigna, Humana, CVS Health and Elevance Health are under pressure due to prior auth pledges stalling. There is also a cautious sentiment in the market due to Fed jitters and the impact of AI on various sectors. No recent recommendations for Samsara Inc were found from major analysts. The sector is experiencing significant changes with insurers facing challenges.

1.c. Company Highlights

2. Samsara's Q2 FY'26 Earnings: Strong Growth and Expanding Profitability

Samsara delivered a robust second quarter fiscal 2026, with revenue growth and expanding profitability. The company's ARR reached $1.64 billion, marking a 30% year-over-year increase. The non-GAAP operating margin stood at 15%, while the free cash flow margin was 11%. Earnings per share (EPS) came in at $0.12, significantly beating estimates of $0.07235. Revenue for the quarter was likely strong, driven by the company's continued investment in sales and marketing, as well as the success of its new products.

Publication Date: Sep -05

📋 Highlights
  • ARR Growth:: $1.64 billion ARR, up 30% YoY.
  • New $1M+ ARR Customers:: 17 added, contributing over 20% of total ARR.
  • Net New ARR Expansion:: 19% YoY growth driven by enterprise customers and product adoption.
  • Data-Driven AI:: Processed 20 trillion data points annually, driving AI product traction (8% of net new ACV).
  • Operating Efficiency:: 15% non-GAAP operating margin and 11% free cash flow margin.

Key Drivers of Growth

The key drivers of Samsara's growth were the addition of new customers, expansion of existing relationships, and the success of emerging products like asset tags, commercial navigation, and maintenance. The company added a record 17 new $1 million-plus ARR customers, representing over 20% of total ARR. The momentum in the $1 million+ ARR customer segment was particularly noteworthy, reaching a quarterly record of 17 customers, a 20% growth. This was driven by customers adopting multiple Samsara solutions, highlighting the platform's expanding value proposition.

Operational Efficiency and Profitability

Samsara is focused on balancing growth and profitability. While gross margins are showing improvement, the majority of the leverage is expected to come from other operating expenses. The company's non-GAAP operating margin was 15%, indicating a level of operational efficiency. The free cash flow margin of 11% also suggests that the company is generating cash from its operations.

Valuation and Outlook

Given Samsara's growth prospects, the current valuation metrics appear reasonable. The P/S Ratio stands at 16.62, while the EV/EBITDA ratio is -2409.01, indicating that the company's valuation is largely dependent on its growth prospects. With analysts estimating next year's revenue growth at 25.4%, the company's valuation seems to be largely justified. However, investors should continue to monitor the company's ability to balance growth and profitability.

Future Opportunities

Samsara is well-positioned to capitalize on the secular growth in physical operations and the global AI infrastructure build-out. The company's focus on customer success, offering a wide range of integrated solutions, and leveraging AI to unlock value for its customers, is expected to drive continued growth. R&D investment will continue to be significant, driven by AI integration and product innovation. The company's sales process has adapted to the increased product offerings by focusing on the platform's value and understanding customers' operations.

3. NewsRoom

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Samsara Inc. (IOT) Q3 2026 Earnings Call Transcript

01:28

Source: seekingalpha.com

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Samsara Inc. (IOT) Q3 Earnings and Revenues Surpass Estimates

Dec -04

Source: zacks.com

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Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

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Samsara Reports Better-Than-Expected Q3 Results: Details

Dec -04

Source: benzinga.com

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Samsara Earnings Beat, Revenue Outlook Underwhelms

Dec -04

Source: investors.com

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Samsara (IOT) Delivers Its First Quarter of Profitability

Dec -04

Source: 247wallst.com

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Samsara's Q3 FY26 Results Show High Growth at Scale

Dec -04

Source: businesswire.com

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Samsara Reports Third Quarter Fiscal Year 2026 Financial Results

Dec -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.01%)

6. Segments

Subscription

Expected Growth: 14.07%

Samsara Inc.'s 14.07% subscription growth is driven by increasing adoption of IoT solutions in the industrial sector, rising demand for real-time data analytics, and expanding presence in the transportation and logistics industry. Additionally, the company's focus on product innovation, strategic partnerships, and effective sales and marketing strategies contribute to its rapid growth.

Other

Expected Growth: 10.83%

Samsara Inc.'s 10.83% growth in 'Other' segment is driven by increasing adoption of IoT-based solutions, expansion into new markets, and growing demand for digital transformation in industries such as logistics, construction, and manufacturing.

7. Detailed Products

Fleet Management

Samsara's Fleet Management solution provides real-time visibility into vehicle location, speed, and other key metrics, enabling fleet operators to optimize routes, reduce fuel consumption, and improve safety.

Industrial IoT Sensors

Samsara's Industrial IoT Sensors provide real-time monitoring of temperature, humidity, and other environmental factors, enabling organizations to optimize operations and reduce waste.

Video-Based Safety

Samsara's Video-Based Safety solution provides AI-powered video analysis to detect and prevent accidents, enabling organizations to improve safety and reduce liability.

Telematics

Samsara's Telematics solution provides real-time vehicle data, enabling organizations to optimize fleet operations, reduce fuel consumption, and improve safety.

Environmental Monitoring

Samsara's Environmental Monitoring solution provides real-time monitoring of air and water quality, enabling organizations to ensure compliance with environmental regulations.

8. Samsara Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Samsara Inc. is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers is high, as they have many options available and can easily switch to competitors if they are not satisfied with Samsara Inc.'s products or services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as Samsara Inc. has multiple suppliers to choose from and can negotiate better prices and terms.

Threat Of New Entrants

The threat of new entrants is moderate, as there are some barriers to entry, but it is still possible for new companies to enter the market and compete with Samsara Inc.

Intensity Of Rivalry

The intensity of rivalry is high, as there are many competitors in the market, and Samsara Inc. needs to differentiate itself and innovate to stay ahead of the competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.81%
Debt Cost 11.83%
Equity Weight 90.19%
Equity Cost 11.83%
WACC 11.83%
Leverage 10.87%

11. Quality Control: Samsara Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 9.0

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A-Score: 3.6/10

Value: 4.0

Growth: 7.9

Quality: 4.0

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.6$

Current Price

46.6$

Potential

-0.00%

Expected Cash-Flows