Is\u00a0IOT\u00a0a good stock to buy?<\/b>\u00a0We came across a bullish\u00a0thesis on Samsara Inc. on Compounding Your Wealth\u2019s Substack by Sergey. In this article, we will summarize the bulls\u2019 thesis on IOT. Samsara Inc.’s share was trading at $31.43 as of April 21st. IOT\u2019s forward P\/E was 46.30 according to Yahoo Finance.<\/p>\n Samsara Inc. provides solutions to connect physical operations data to its connected operations platform in the United States and internationally.\u00a0IOT\u00a0delivered a strong Q4 2025 performance, reinforcing its position as a leading platform for digitizing physical operations 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 net new ARR marking the third consecutive quarter of acceleration.<\/p>\n Read More: <\/b>15 AI Stocks That Are Quietly Making Investors Rich<\/b><\/p>\n Read More:<\/b> Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential<\/b><\/p>\n Profitability improved meaningfully, with operating margins expanding to 20.7% and net margins turning positive at 5.0%, alongside a significant EPS beat. Growth is increasingly efficient, as sales, R&D, and G&A expenses declined as a percentage of revenue, while stock-based compensation and dilution trends also moderated.<\/p>\n The business continues to scale through enterprise adoption, with 3,194 customers generating over $100K ARR (+28.6% YoY) and rapid growth in $1M+ customers. Expansion within customers remains a key driver, supported by 115% net revenue retention and strong multi-product adoption, where the majority of large clients deploy multiple solutions. Core offerings in fleet management, safety, and telematics are complemented by high-growth adjacencies such as Asset Tags, AI-powered video systems, and workflow automation, with emerging products contributing a growing share of new ACV.<\/p>\n Samsara\u2019s competitive advantage is anchored in its proprietary data network, processing trillions of data points annually, which enhances its AI models and creates a reinforcing data flywheel. While hardware deployment complexity, supply chain pressures, and modest margin compression in gross margins remain challenges, these are offset by improving operating leverage and strong customer ROI. With guidance pointing to ~22% revenue growth and full-year GAAP profitability, Samsara appears well-positioned to capitalize on the long-term digital transformation of physical operations, offering a durable growth and margin expansion story.<\/p>\n Previously, we covered a\u00a0bullish thesis<\/b> on Samsara Inc. (IOT) by Compounding Your Wealth in April 2025, which highlighted strong ARR growth, AI-driven product expansion, and enterprise adoption. IOT’s stock price has depreciated by approximately 18.00% since our coverageprimarily due to valuation compression in high-growth software stocks, investor disappointment with forward guidance despite earnings beats, and periodic insider share sales that pressured market sentiment. Sergey shares a similar view but emphasizes on improved profitability and operating leverage following strong Q4 2025 results.<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n