IOT Should I Buy
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Samsara Inc. (IOT) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company shows strong revenue growth and leadership in its market, the recent financial performance indicates a significant drop in net income and EPS. Additionally, the stock has mixed analyst ratings with lowered price targets, suggesting caution. The technical indicators and options data do not provide a compelling immediate entry point. A hold is recommended until clearer positive signals emerge.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 66.909, not signaling overbought or oversold conditions. Moving averages are converging, showing no strong trend. Key resistance is at 28.588, which aligns with the current price, and support is at 26.68. Overall, the technical setup is neutral to slightly positive but not strongly compelling for a buy.
Samsara has expanded its network to cover 99% of major U.S. roads and introduced AI-powered asset tags, enhancing its product offerings.
The company was named the No. 1 Best Supply Chain & Logistics Software Product of 2026 by G2, reflecting high customer satisfaction.
Strong revenue growth of 29.19% YoY in the latest quarter.
Significant drop in net income (-120.54% YoY) and EPS (-114.29% YoY) in the latest quarter.
Analysts have recently lowered price targets, reflecting cautious sentiment.
No significant insider or hedge fund activity, indicating a lack of strong institutional confidence.
In Q3 2026, Samsara reported a 29.19% YoY increase in revenue to $415.98M, showcasing strong top-line growth. However, net income dropped significantly by -120.54% YoY to $7.77M, and EPS fell by -114.29% YoY to $0.01. Gross margin slightly improved to 76.69%, up 0.39% YoY, indicating operational efficiency but not enough to offset the decline in profitability.
Analyst sentiment is mixed. Goldman Sachs initiated coverage with a Buy rating and a $36 price target, citing Samsara as a defensible growth asset. However, Truist, RBC, and Piper Sandler have all lowered their price targets recently, reflecting caution in the software sector. The average price target remains above the current price, but the downward revisions suggest tempered expectations.
