Shares of Samsara Inc. (NYSE: IOT) soared more than 17% in trading Friday, March 6, 2026, as investors reacted enthusiastically to the IoT platform company's fourth-quarter and full-year fiscal 2026 results, which showed accelerating growth, record annual recurring revenue and improving profitability driven by AI-powered solutions for physical operations.

Samsara
Samsara

The San Francisco-based company closed around $34.68 midday, up $5.10 or 17.24% from Thursday's close of $29.58, per real-time data from Yahoo Finance and other platforms. Intraday highs approached $35.01, with volume exceeding 12 million shares — well above the average of about 7.7 million. The rally followed Samsara's after-hours earnings release on March 5, which beat expectations and provided solid fiscal 2027 guidance.

Samsara reported fourth-quarter revenue of $444.3 million, surpassing analyst estimates of around $422 million by about 5.2%. Adjusted earnings per share came in at $0.04 (non-GAAP figures varied across reports, with some noting $0.18 adjusted), reflecting strong execution despite mixed EPS views. For the full fiscal year 2026 (ended January 31, 2026), revenue reached approximately $1.62 billion, up roughly 30% year-over-year.

The standout metric was ending annual recurring revenue (ARR) of $1.9 billion, a 30% increase from the prior year. Net new ARR for the quarter hit $145 million (up 33% year-over-year in constant currency), marking the third straight quarter of sequential acceleration and the highest growth in eight quarters. The company added a record 13 deals with more than $1 million in annual contract value, underscoring strength with large enterprise customers. ARR from customers paying over $100,000 annually reached $1.2 billion, growing 37% year-over-year.

CEO Sanjit Biswas highlighted the Connected Operations Cloud platform's role in digitizing physical operations for industries like transportation, construction, field services and logistics. "Our AI platform is delivering clear benefits," he said in the earnings release, pointing to phases of adoption: visibility, optimization and full workflow automation with proprietary AI agents. Customers are leveraging features like AI-driven video insights, predictive maintenance and safety tools to improve efficiency and reduce risks.

Profitability improved markedly. Non-GAAP gross margin held strong at around 78%, non-GAAP operating margin expanded to 17% for the year, and free cash flow margin reached 13%. Samsara achieved GAAP profitability in recent quarters, a key milestone for the growth-stage company.

For fiscal 2027, Samsara guided revenue of $1.965 billion to $1.975 billion (about 21-22% growth), non-GAAP operating margin of 19% (up from 17% in FY26), and non-GAAP EPS of $0.65-$0.69. The outlook emphasizes continued GAAP profitability and operating leverage, though revenue growth moderates slightly from FY26's pace amid larger scale.

Analysts largely cheered the results. Consensus price targets hover around $43-$46, implying 25-35% upside from pre-earnings levels, with highs up to $60. Firms have maintained Buy ratings, citing durable enterprise momentum, AI differentiation and path to sustained profitability in the IoT sector.

The stock has faced volatility in 2026, trading in a 52-week range from $23.38 to $48.41 (with an all-time high near $61 in early 2025). Year-to-date performance has been mixed, down from earlier peaks but rebounding sharply post-earnings. Market cap swelled to over $20 billion intraday Friday.

Samsara's Connected Operations platform connects physical assets — vehicles, equipment, workers — with cloud-based software for real-time visibility, analytics and automation. The company serves thousands of customers, including large fleets and construction firms, and continues expanding its AI capabilities to address workflow inefficiencies.

While the sector faces competition from players in telematics and enterprise software, Samsara's focus on integrated IoT, video and AI has driven customer retention and upsell opportunities. Management noted strong demand from large accounts, with acceleration in high-value deals.

Investors will monitor execution on FY27 guidance amid macro uncertainties, but Friday's surge reflects confidence in Samsara's positioning for long-term growth in digitizing physical operations.