Is IOT a good stock to buy? We came across a cheap thesis on Samsara Inc. Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls thesis on IOT. Share of Samsara Inc. it was $31.43 as of April 21st. IOT’s forward P/E was 46.30 according to Yahoo Finance.
Samsara Inc. provides solutions for connecting physical operational data to its connected workplace in the United States and internationally. IOT presented a strong performance for Q4 2025, strengthening its position as the leading scene for digitizing physical activity through IoT and AI. Revenue reached $444.3 million (+28.3% YoY), while ARR grew to $1.89 billion (+29.6% YoY), with $145 million in new ARR marking the third consecutive quarter of acceleration.
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Profitability improved meaningfully, as operating margins expanded to 20.7% and gross margins turned positive at 5.0%, consistent with a significant EPS beat. Growth is becoming more efficient, as sales, R&D, and G&A expenses decline as a percentage of revenue, while stock-based compensation and dilution trends are also measured.
The business continues to grow through business acquisitions, with 3,194 customers generating over $100K ARR (+28.6% YoY) and rapid growth to $1M+ customers. Growth within customers remains a key driver, supported by 115% net retention and strong multi-product adoption, with most major customers using multiple solutions. Key offerings in fleet management, security, and telematics are accompanied by high growth such as Asset Tags, AI-powered video systems, and workflow automation, with emerging products contributing a growing share of new ACV.
Samsara’s competitive advantage is based on its proprietary data network, processing trillions of data points annually, which improves its AI models and creates a data-intensifying flywheel. While hardware deployment difficulties, supply chain pressures, and modest margin compression on gross margins remain challenges, these are being addressed through operational efficiencies and strong customer ROI. With guidance pointing to 22% revenue growth and full-year GAAP profit, Samsara appears well-positioned to capitalize on the long-term digital transformation of physical operations, providing long-term growth and margin expansion.
Previously, we included a bullish thesis to Samsara Inc. (IOT) by Integrating Your Wealth in April 2025, which highlighted strong ARR growth, AI-driven product expansion, and business acquisitions. IOT’s stock price is down about 18.00% since our coverage due to pressure from evaluations of high-growth software stocks, investor disappointment with forward guidance despite an earnings beat, and occasional insider share sales that have weighed on market sentiment. Sergey has a similar view but emphasizes on improved profit and operating margin following strong Q4 2025 results.
