Samsara (IOT) shares closed nearly 20% higher on March 6 after the cloud software company’s solid Q4 and impressive future guidance signaled artificial intelligence (AI) disruption fears are indeed overblown.
The San Francisco-headquartered firm saw its revenue come in at $444 million, up some 28% on a year-over-year basis, helping it record its second consecutive quarter of GAAP profitability.
Versus its year-to-date low, Samsara stock is now up a whopping 50%. Still, Craig Hallum analysts believe the software stock will rip higher from here as the year unfolds.
Samsara Stock Seen Hitting $48 in 2026
Samsara ended its January quarter with $1.89 billion in annual recurring revenue (ARR), a 30% year-over-year increase that showcases “improving operational leverage” as gross margins remain healthy at 77%.
That made Craig Hallum experts maintain their “Buy” rating on IOT stock, with a $48 price target indicating potential upside of roughly 35% from here.
Samsara’s artificial intelligence dashcams continue to be a massive driver, making up nearly half of the overall revenue in Q4.
Meanwhile, “international” now represents about 15% of new wins, reinforcing that the platform is scaling well beyond North America, they added in their bullish note on Friday.
IOT Shares Aren’t Really Expensive to Own
Management’s better-than-expected guidance for $1.97 billion in revenue this year after adding 13 new customers with over $1 million in ARR were among other reasons Craig Hallum cited for its constructive view.
According to its analysts, IOT’s current price-to-sales (P/S) multiple of about 11x isn’t particularly stretched given the impressive pace at which it’s growing quarter after quarter.
And options traders seem to agree with them as well, especially since Nvidia (NVDA) CEO Jensen Huang has already said artificial intelligence’s impact on software firms is rather misunderstood.
The upper price on contracts expiring mid-June sits at about $44 currently, which translates to over 20% upside in Samsara shares within the next three months.
What’s the Consensus Rating on Samsara?
Samsara’s business model demonstrates distinctive features that differentiate it from traditional per-seat software subscription vulnerabilities.
The company processes over 25 trillion data points annually, generating a powerful data network effect that strengthens as customer count and asset instrumentation expand.
This moat is difficult to replicate and provides the foundation for artificial intelligence-based product development, including nascent offerings like AI Safety Coach and Asset Tag XS.
Other Wall Street firms are, therefore, keeping bullish on IOT shares as well. The consensus rating on Samsara sits at “Moderate Buy” currently, with the mean target of about $43.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
