Samsara Shares Down 57% While Trading at 7.8x Forward P/S
Samsara shares plunged 57.1% over the past year, versus a 20.1% industry decline and an 18.1% sector gain, and trade at a forward price-to-sales ratio of 7.81 versus 3.87. In Q2 2026, the company added 133 new $100K+ ARR customers, raising its count to 2,771, including 147 customers contributing $1M+.
1. Yearly Performance and Valuation
Over the past year, Samsara shares have dropped 57.1%, underperforming the Internet software industry’s 20.1% decline and the broader technology sector’s 18.1% gain. The stock now trades at a forward price-to-sales ratio of 7.81, substantially above the industry average of 3.87, and carries a Zacks Value Score of F.
2. Q2 Customer Additions and ARR Growth
In the second quarter of fiscal 2026, Samsara added 133 new customers each generating more than $100,000 in annual recurring revenue, bringing its customer base to 2,771. Among these, 147 clients now contribute at least $1 million in ARR, reflecting strong adoption of its Connected AI Platform and IoT solutions.
3. Competitive Landscape and Profitability
Samsara faces fierce competition in vehicle telematics from Motive, Lytx, Verizon and Trimble, and in industrial IoT from PTC. Despite a robust non-GAAP gross margin of 78% in Q2, its non-GAAP operating margin was 19%, as rising sales, marketing and R&D expenses challenge profitability. Consensus estimates for Q3 2026 project 18.8% revenue growth with net margins near breakeven.
4. AI Platform and Data Insights
The company processes over 20 trillion operational data points from its IoT devices to train AI models, powering its Samsara Assistant and Intelligent Experiences features. These AI-driven tools aim to improve predictive accuracy, automation and safety outcomes, helping maintain low customer churn and drive deeper operational visibility.