What Happened?
Shares of ioT solutions provider Samsara (NYSE: IOT) jumped 18% in the morning session after the company reported strong second-quarter financial results that surpassed analyst expectations and raised its full-year outlook.
The software platform company announced second-quarter revenue of $391.5 million, a 30.4% increase year-over-year that beat estimates of $372.3 million. Adjusted earnings per share came in at $0.12, significantly higher than the consensus estimate of $0.07. The company's annual recurring revenue also grew by 29.8% to $1.64 billion, driven by strong customer acquisition, adding 133 enterprise customers who pay more than $100,000 annually. Looking ahead, Samsara lifted its full-year guidance. The company now expects revenue of $1.58 billion at the midpoint and raised its adjusted earnings per share outlook to $0.46 at the midpoint. This positive forecast reflects the company's strong performance in demand, profitability, and customer expansion.
Is now the time to buy Samsara? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Samsara’s shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for Samsara and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 2.8% on the news that the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs.
Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
Samsara is down 6.8% since the beginning of the year, and at $41.02 per share, it is trading 32.7% below its 52-week high of $60.96 from February 2025. Investors who bought $1,000 worth of Samsara’s shares at the IPO in December 2021 would now be looking at an investment worth $1,661.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
