Key Points
Samsara's sales and profits are growing quickly.
Businesses that depend on physical assets also want to digitize their operations.
Shares of Samsara (NYSE: IOT) rallied on Friday after the connected operations platform reported strong quarterly growth metrics.
By the close of trading, Samsara's stock price was up nearly 20%.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Digitizing the physical
Samsara's revenue rose 28% year over year to $444.3 million in its fiscal 2026 fourth quarter, which ended on Jan. 31. The tech company's adjusted earnings, in turn, soared 115% to $0.56 per share.
The Internet of Things (IoT) leader helps businesses digitize their physical operations. Think vehicles, trailers, and shipping containers linked via a system of hardware devices, cloud networks, data integrations, and artificial intelligence (AI).
In a letter to shareholders, CEO Sanjit Biswas noted that Samsara collects a whopping 25 trillion data points annually.
"This data provides us with a unique moat that fuels a powerful data network effect: as we add more customers and assets, our AI models become more insightful for everyone on the platform, creating a compounding advantage that is difficult for others to replicate."
A long runway for further expansion
Samsara projects its full-year revenue to grow by roughly 22% to $1.97 billion in fiscal 2027. The company also expects adjusted earnings per share of $0.65 to $0.69.
"We are in the early innings of a multi-decade opportunity to transform the physical world," Biswas said.
Should you buy stock in Samsara right now?
Before you buy stock in Samsara, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Samsara wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,817!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,912!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 6, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Samsara. The Motley Fool has a disclosure policy.
