Shares of PowerFleet, Inc. (NASDAQ: AIOT) surged 20.67% in early trading on Monday, as the company reported better-than-expected first-quarter fiscal year 2026 results and announced a major new partnership. The stock's significant uptick reflects investors' positive reaction to the company's strong performance and strategic growth initiatives in the Internet of Things (IoT) and Artificial Intelligence of Things (AIoT) solutions space.

PowerFleet reported Q1 revenue of $104.1 million, surpassing analyst expectations of $103.2 million. The company demonstrated robust growth with a 38% year-over-year increase in total revenue, driven by a 6% sequential rise in services revenue. Notably, services now account for a record high of 83% of total revenue, highlighting the company's successful transition towards a high-margin business model. In response to this strong performance, PowerFleet raised its FY2026 revenue guidance to $430-$440 million, up from the previous range of $420-$440 million.

Adding to the positive momentum, PowerFleet announced a new major strategic partnership with MTN Business to scale AIoT adoption across extensive enterprise operations. This collaboration is expected to significantly expand PowerFleet's market reach and accelerate the adoption of its innovative solutions. The combination of strong financial results, raised guidance, and strategic business development has clearly resonated with investors, driving the substantial stock price increase. Additionally, several analysts have maintained positive ratings on the stock, with price targets suggesting significant upside potential, further boosting investor confidence in PowerFleet's growth prospects.