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On Friday, Wolfe Research analysts increased the price target for Samsara Inc (NYSE: NYSE:IOT) stock to $45 from $41, maintaining an Outperform rating. The adjustment follows a decline of approximately 12% in Samsara shares after the company released its first-quarter fiscal 2026 earnings. Year-to-date, Samsara’s stock has fallen by 5%, contrasting with a 4.5% rise in the IGV index and a 1% gain in the S&P 500.
Samsara reported a 31% year-over-year increase in annual recurring revenue (ARR) for the first quarter of fiscal 2026, with net new annual recurring revenue (NNARR) growing by 5% over the same period. The company added 154 new customers with more than $100,000 in ARR, which now makes up 58% of the total ARR. InvestingPro data reveals impressive gross profit margins of 76.65% and sustained revenue growth of 31.72% over the last twelve months.
Wolfe Research highlighted Samsara’s competitive positioning in what it described as a fragmented market. The analysts noted that the fiscal year 2026 guidance reflects a conservative approach, which they believe supports a positive outlook despite economic uncertainties.
The analysts value Samsara at approximately 13.5 times its estimated revenue for calendar year 2026, which represents a 25% premium compared to its Heavyweight Growth peers. Wolfe Research reiterated its Outperform rating, emphasizing the company’s solid execution in the first quarter.
In other recent news, Samsara Inc. reported its first-quarter fiscal year 2026 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.11, compared to the forecasted $0.05. The company’s revenue reached $367 million, surpassing the anticipated $351.56 million and marking a 31% year-over-year growth. Goldman Sachs reaffirmed its Buy rating on Samsara, maintaining a price target of $46, despite a 13% decline in the stock after hours. This decline was attributed to a slowdown in net new annual recurring revenue growth and extended sales cycles. The firm remains optimistic about Samsara’s ability to navigate macroeconomic challenges, citing strong international performance, particularly in Europe. Samsara’s record non-GAAP gross margin of 79% and operating margin improvements further highlight its financial strength. The company also provided guidance for the second quarter, estimating revenue between $371 million and $373 million, representing a 24% year-over-year growth. Samsara continues to focus on AI-driven solutions to enhance operational efficiency and safety for its customers.
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