Samsara Earnings On Deck: Stock (NYSE: IOT) Rallying Off Low’s Leading In

Samsara Inc. (NYSE: IOT), a prominent player in the Internet of Things (IoT) space, is set to report its earnings for the quarter today, after market close. The company's stock price is down 19.28% YTD leading into the final session before the print, although IOT found a bit of support over the past month.

Having hit a low of $31.40, support appears willing to step in around the $32 level, seeing Samsara's stock rally 10% over the past three weeks into earnings.

Analysts are projecting earnings per share (EPS) of $0.07 for the quarter, with revenue forecasts of $372.22 million. This represents a considerable expectation for growth, considering the company's previous quarter performance.

In the last quarter, Samsara reported an EPS of $0.11, handily beating the consensus estimate of $0.06, and revenue of $366.88 million, also exceeding expectations. A repeat performance could provide a much-needed boost to market confidence.

Recent news highlights Samsara's strong Q1 FY26 performance. The company reported an Annual Recurring Revenue (ARR) of $1.54 billion, a 31% year-over-year increase. Furthermore, Samsara added 154 new customers with ARR exceeding $100,000, a 35% increase compared to the previous year. These new clients include recognizable names like 7-Eleven, Dallas-Fort Worth Airport, and the State of South Carolina, demonstrating the breadth and appeal of Samsara's solutions.

Samsara's AI-powered platform is increasingly becoming a key differentiator. The company is touting significant improvements in operational efficiency and safety for its clients. Case studies show a leading U.S. retail propane company achieving a 75% reduction in safety incidents and Sterling Crane saving over $3 million by reducing unplanned maintenance costs. These tangible benefits are likely to resonate with potential and existing customers, driving further adoption of Samsara's technology.

Despite the recent stock volatility, analysts remain cautiously optimistic. The consensus rating for Samsara is a “Hold,” with an average price target of $49.71. This price target suggests a potential upside from the current trading price, indicating that analysts believe the stock is currently undervalued.

While the prevailing narrative focuses on Samsara's growth potential and the positive impact of its AI-driven solutions, several established tech giants and emerging startups are vying for market share, potentially squeezing Samsara's margins and limiting its long-term growth.

Furthermore, the increasing complexity of IoT deployments and the growing concerns around data privacy and security could present significant headwinds for the company.

While Samsara boasts impressive customer wins and success stories, it remains to be seen whether these gains can be sustained in an increasingly challenging and dynamic market.

Volatility is expected today, with markets indicating a move of plus/minus 13% leading in.