Why Samsara Stock Is Soaring Today
Key Points
Samsara reported strong Q3 2026 financial results after the bell rang yesterday.
Several analysts hiked their price targets on Samsara's stock.
The stock is trading at a premium to its historical valuation.
- 10 stocks we like better than Samsara ›
Ending yesterday's trading session at $40.71, Samsara (NYSE: IOT) stock closed at its highest level since early November. Today, however, the Internet of Things (IoT) stock is poised to exceed Thursday's performance. With the company's reporting of strong financial results after the bell rang yesterday, investors are finding plenty of cause to bid the stock higher. Analysts presenting increasingly bullish outlooks on Samsara's stock are also contributing to the buying activity.
As of 10:50 a.m. ET, shares of Samsara are up 14.5%.
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It wasn't only the top line where Samsara reported strong growth
Posting Q3 2026 revenue of $416 million, Samsara achieved a 29% year-over-year increase on the top line and exceeded the expectations of analysts who anticipated the company would report sales of $399 million.
The bottom line of the income statement also featured strong growth. Samsara reported adjusted diluted earnings per share (EPS) of $0.15, a 114% year-over-year increase.
It's not merely the headline figures that are piquing investors' interests. Samsara generated adjusted free cash flow of $55.8 million in Q3 2026 with an adjusted free cash flow margin of 13% -- better than the $31.2 million and 10% adjusted free cash flow and adjusted free cash flow margin, respectively, that it generated in Q3 2025.
Based on the company's strong financial results, analysts have taken a more bullish stance on Samsara stock today:
- TD Cowen raised its price target to $55 from $49.
- BMO Capital hiked its price target to $50 from $47.
- Bank of America lifted its price target to $55 from $53.
For IoT exposure, Samsara's stock is a compelling consideration
Trading at 15.5 times trailing sales, Samsara's stock is valued at a premium to its five-year average sales multiple of 14. That fact, however, should hardly dissuade investors looking for an IoT stock from clicking the buy button. Samsara is emerging as one of the industry's leaders, and with more growth forecast for the IoT industry, Samsara stock certainly has room to run.
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Bank of America is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Samsara. The Motley Fool has a disclosure policy.
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