Why Samsara Stock Surged Today

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%.

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.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Samsara. The Motley Fool has a disclosure policy.