Samsara Up 53% in the Past 6 Months: Is the Stock Still a Screaming Buy?

Samsara (IOT Quick QuoteIOT – Free Report) shares have surged 52.7% over the trailing six-month period compared with the Zacks Computer & Technology sector’s rise of 8.5% and the Zacks Internet – Software sector’s rally of 15.9%.

The company has outperformed its industry peers, including 8×8 (EGHT Quick QuoteEGHT – Free Report) and Five9 (FIVN Quick QuoteFIVN – Free Report) , over the trailing six months. While EGHT and FIVN have gained 35.4% and 7.2% respectively.

The uptick can be attributed to Samsara’s expanding clientele and strong partner base. IOT’s momentum in customer acquisition during the third quarter of fiscal 2025 is evident as it added 170 customers with more than $100,000 in Annual Recurring Revenues (ARR), reflecting sustained growth.

The expansion included an impressive record of 100 customers with more than $1 million in ARR, underscoring the increasing adoption of its platform by large enterprises. IOT concluded the fiscal third quarter of 2025 with an ARR of $1.34 billion, up 35% year over year.

IOT Benefits From Expanding Clientele

Samsara’s expanding clientele, which includes Trayecto, Fraikin Group and AT&T (T Quick QuoteT – Free Report) , has been a major growth driver for its success. This growing customer base is a testament to the increasing trust in Samsara’s innovative solutions.

In December, Samsara announced its strategic partnership with Trayecto, Mexico’s largest freight transport company, leveraging AI-driven solutions to achieve a 90% increase in asset recovery and an 83% reduction in vehicle recovery time. This collaboration further underscores Samsara’s ability to deliver impactful results, strengthening its position in the logistics and transportation sector.

Samsara also expanded its clientele by partnering with AT&T to enhance its offerings for public safety customers.

Samsara introduced new products and solutions at its Beyond conference, including the FirstNet Trusted Vehicle Gateway, designed to enhance public safety communications through AT&T’s network.

Samsara Drives Growth With AI Solutions Across Industries

IOT is experiencing strong growth as a result of the ongoing digitization wave, leveraging its advanced AI solutions to benefit various industries. This includes construction, food and beverage, transportation, warehousing and agriculture.

In the third quarter of fiscal 2025, Samsara introduced Samsara Intelligence, which included tools like Samsara Assistant (a generative AI tool) and Intelligent Experiences to make smarter decisions. This AI-based product suite, trained on the company’s vast data set, was pivotal in driving operational improvements for its customers.

IOT Raises Fiscal 2025 Guidance

Samsara’s strong customer growth, expanded AI-powered solutions, diversified product adoption, and increased international market penetration have been tailwinds for the company.

For the fourth quarter of fiscal 2025, Samsara expects revenues between $334 million and $336 million, representing 21-22% year-over-year growth. The Zacks Consensus Estimate is currently pegged at $335.53 million, suggesting 21.45% growth year over year.

Non-GAAP earnings for the fiscal fourth quarter are expected to be between 7 and 8 cents per share.The consensus mark for the metric is currently pegged at 7 cents per share, which has increased by a penny in the past 30 days.

For fiscal 2025, Samsara expects revenues between $1.237 billion and $1.239 billion, representing 32% year-over-year growth. The Zacks Consensus Estimate is currently pegged at $1.24 billion, suggesting 31.92% growth year over year.

Non-GAAP earnings for fiscal 2025 are expected to be between 22 and 23 cents per share.  The consensus mark for the metric is currently pegged at 22 cents per share, which has increased 29% in the past 30 days.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

IOT Stock – Buy, Sell or Hold?

Samsara stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.

The forward 12-month Price/Sales ratio for IOT stands at 17.01X, higher than its Zacks Internet – Software sector’s 3.05X, reflecting a stretched valuation.

However, Samsara’s strong portfolio and expanding partner base are contributing to its growth prospects continuously, driving top-line growth.

Samsara stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.