By Nate Wolf

Shares of Samsara rose sharply Friday after the Internet of Things company shook off worries about disruption by artificial intelligence with its fiscal fourth-quarter earnings report.

Samsara, whose technology connects physical operations like shipping and manufacturing, reported adjusted earnings of 18 cents a share for the quarter. Analysts expected 13 cents, according to FactSet. The company finished the year with $1.9 billion in annual recurring revenue, or ARR, up 30% from last year.

Shares jumped 9.6% to $32.41 in premarket trading Friday. Like other software stocks, Samsara has struggled in 2026, dropping 17% as of Thursday's close of trading.

The earnings report may ease some investors' concerns. The company remains of the few high-growth software companies with expanding margins and a focus on vertical integration, said Evercore ISI analyst Kirk Materne in a research note Friday. Vertical software companies, Materne argued, remain "more insulated" from AI disruption.

Evercore reiterated an Outperform rating on Samsara stock and named it a "top idea," replacing Oracle.

Samsara also is integrating AI into its own offerings and may have a leg up in this area because of its enormous proprietary data from clients' physical operations, said BTIG analyst Nick Altmann. BTIG reiterated a Buy rating on the stock and trimmed its price target to $45 from $55 to reflect falling valuations in the industry.

Write to Nate Wolf at nate.wolf@barrons.com

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March 06, 2026 08:15 ET (13:15 GMT)

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