Samsara: Margin Machine Awakens, But AI Clouds The Upside

2026-02-17 11:07:35 ET

When I rated Samsara ( IOT ) a Hold in August last year, my primary concerns were an almost SaaS-like valuation when the business was not showing enough operating leverage. I had concerns around a potential growth maturation before margins turn healthy at scale. Samsara has reported two sets of quarterly results since, and the numbers and guidance show margin improvement trends, while growth has not deteriorated either. Overall, the business's fundamentals have improved. In the meantime, a wider AI disruption risk has meant Samsara has also come under pressure, and valuations have contracted more than fundamentals indicate....

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