SamsaraIOT +7.45%77 Gross Margin % is 75.42% as of Apr. 2026, which is 5% above its 10-year median of 72.01. GuruFocus rates IOT with a GF Score™ of 77/100 and a GF Value™ of $56.24 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,685 Software companies, Samsara ranks better than 85.51% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Samsara's Gross Profit for the
three
months ended in Apr. 2026 was $361 Mil. Samsara's Revenue for the
three
months ended in Apr. 2026 was $479 Mil. Therefore, Samsara's Gross Margin % for the quarter that ended in Apr. 2026 was 75.42%.
The historical rank and industry rank for Samsara's Gross Margin % or its related term are showing as below:
IOT'
s Gross Margin % Range Over the Past 10 Years
Min: 59.69 Med: 72.01 Max: 76.74
Current: 76.25
During the past 7 years, the highestGross Margin % of Samsara was 76.74%. The lowest was 59.69%. And the median was 72.01%.
IOT's Gross Margin % is ranked better than 85.51% of 2685
companies
in the Software industry
Industry Median: 40.45
vs IOT: 76.25
Samsara had a gross margin of 75.42% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Samsara was 2.00% per year.
Samsara (NYSE:IOT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Samsara had a gross margin of 75.42% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Samsara Gross Margin % Related Terms
Samsara Gross Margin % Historical Data
* Premium members only.
The historical data trend for Samsara's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
IOT vs OKTA, FFIV, AKAM: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Samsara's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Samsara Gross Margin % vs Software Industry
For the Software industry and Technology sector, Samsara's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Samsara's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Samsara (IOT) has a Gross Margin % of 75.42% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Samsara and its competitors. This is near median its historical median of 72.01. Over the past decade, Samsara's Gross Margin % has ranged from 59.69 to 76.74. According to the industry distribution chart, Samsara ranks #389 out of 2685 companies in the Software industry, placing it in the top 14.5%.
Is Samsara's Gross Margin % too high?
Samsara's current Gross Margin % of 75.42% is near median its 10-year median of 72.01. Over the past 10 years, this metric has ranged from a low of 59.69 to a high of 76.74. The Software industry median Gross Margin % is 40.45. Samsara's value of 75.42% is 86.5% above this industry median. Based on the distribution chart, Samsara ranks #389 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Samsara has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Samsara's Gross Margin % compare to OKTA and FFIV?
According to the Software industry distribution chart, Samsara ranks #389 out of 2685 companies for Gross Margin %. This places Samsara in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Samsara's value of 75.42% is 86.5% above this benchmark. Historically, Samsara's own Gross Margin % has ranged from 59.69 to 76.74 over the past decade. While the company's 10-year median is 72.01 vs. the industry median of 40.45, Samsara has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Samsara's current Gross Margin % of 75.42% is 86.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Samsara and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Samsara's current Gross Margin % is 75.42%, which is near median its own 10-year median of 72.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Samsara stock overvalued right now?
Based on GuruFocus' analysis, Samsara (IOT) is currently considered Significantly Undervalued. The stock's GF Value™ is $56.24, compared to a current price of $31.14 — trading 44.6% below its estimated fair value. The current Gross Margin % is 75.42%, which is near median its 10-year median of 72.01 and 86.5% above the Software industry median of 40.45. Samsara's overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Samsara (IOT), the current Gross Margin % is 75.42% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Samsara (IOT) Overvalued in 2026?
Based on GuruFocus' analysis, Samsara stock appears to be undervalued.
The current stock price of $31.14 is trading 44.6% below its estimated GF Value™ of $56.24.
GuruFocus considers Samsara to be Significantly Undervalued.
Key valuation signals for IOT:
Gross Margin %: 75.42% (near median its 10-year median of 72.01)
GF Value™: $56.24 vs. price of $31.14 (44.6% below fair value)
Industry Position: 86.5% above the Software median (#389 of 2685)
No single metric tells the full story. See the IOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Samsara Inc provides an end-to-end solution for operations. The company's Connected Operations Platform consolidates data from its IoT devices and a growing ecosystem of connected assets and third-party systems, and makes it easy for organizations to access, analyze, and act on data insights using its cloud dashboard, custom alerts and reports, mobile apps, and workflows. The company derives almost all of its revenue from subscription services. Geographically, it derives a majority of its revenue from the United States. The company's customers range from small and medium-sized businesses to state and local governments.
77GF Score
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