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    Samsara (IOT) Is Up 7.7% After First GAAP Profit And Surging Enterprise ARR - What's Changed

    Simply Wall St·12/12/2025 12:27:28
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    • Samsara Inc. recently reported its third-quarter 2026 results, with revenue rising to US$415.98 million and net income reaching US$7.77 million, marking its first quarter of GAAP profitability after a loss in the prior year period.
    • The company paired this milestone with a 29% year-on-year increase in Annual Recurring Revenue, record additions of large enterprise customers, and growing international traction, underscored by customer case studies such as Swissport’s incident and vehicle damage reductions using Samsara’s AI-powered platform.
    • We’ll now examine how Samsara’s first quarter of GAAP profitability and record large-customer additions reshape its pre-existing investment narrative.

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    Samsara Investment Narrative Recap

    To own Samsara, you need to believe that its Connected Operations Platform can keep converting physical operations data into sticky, high-margin software revenue, especially with large enterprises and AI-enabled safety products. The first GAAP-profitable quarter and 29% ARR growth support that thesis, but management’s comments on longer, less predictable large-deal sales cycles keep near term revenue visibility as the key catalyst and also the most immediate risk. Overall, this quarter strengthens the story more than it changes it.

    The Q3 2026 earnings report is the most relevant development, because it combines US$415.98 million in revenue, a US$7.77 million net profit, and record additions of customers above US$100,000 in ARR. That blend of scale, improving profitability, and large-customer momentum directly ties into the main catalyst of expanding enterprise adoption and multiproduct usage, while also highlighting how dependent Samsara is on successfully closing and ramping these complex, often lengthy deals.

    But while the headline profitability is encouraging, investors should be aware that the same large enterprise deals driving growth are also becoming longer and less predictable...

    Read the full narrative on Samsara (it's free!)

    Samsara's narrative projects $2.4 billion revenue and $311.3 million earnings by 2028. This requires 21.2% yearly revenue growth and about a $432 million earnings increase from -$120.7 million today.

    Uncover how Samsara's forecasts yield a $49.72 fair value, a 13% upside to its current price.

    Exploring Other Perspectives

    IOT 1-Year Stock Price Chart
    IOT 1-Year Stock Price Chart

    Ten members of the Simply Wall St Community currently see Samsara’s fair value anywhere between US$13.51 and US$59.16, with estimates spread across the full range. Against that backdrop, the recent GAAP profitability and strong ARR growth, tempered by management’s caution on large deal sales cycles, give you several different angles to weigh when thinking about Samsara’s longer term performance and risk profile.

    Explore 10 other fair value estimates on Samsara - why the stock might be worth less than half the current price!

    Build Your Own Samsara Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.