SamsaraIOT -0.48%76 Operating Margin % is 1.50% as of Apr. 2026. GuruFocus rates IOT with a GF Score™ of 76/100 and a GF Value™ of $56.17 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,818 Software companies, Samsara ranks worse than 61.64% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Samsara's Operating Income for the
three
months ended in Apr. 2026 was $7 Mil. Samsara's Revenue for the
three
months ended in Apr. 2026 was $479 Mil. Therefore, Samsara's Operating Margin % for the quarter that ended in Apr. 2026 was 1.50%.
Good Sign:
Samsara Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Samsara's Operating Margin % or its related term are showing as below:
IOT'
s Operating Margin % Range Over the Past 10 Years
Min: -190.06 Med: -39.6 Max: -0.7
Current: -0.7
IOT's Operating Margin % is ranked worse than 61.64% of 2818
companies
in the Software industry
Industry Median: 3.875
vs IOT: -0.70
Samsara's 5-Year Average Operating Margin % Growth Rate was 46.10% per year.
Samsara's Operating Income for the
three
months ended in Apr. 2026 was $7 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $-12 Mil.
Samsara (NYSE:IOT) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Samsara Operating Margin % Related Terms
Samsara Operating Margin % Historical Data
* Premium members only.
The historical data trend for Samsara's Operating 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: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Samsara's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, Samsara's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Samsara's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Samsara's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Samsara (IOT) has a Operating Margin % of 1.50% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Samsara and its competitors. According to the industry distribution chart, Samsara ranks #1737 out of 2818 companies in the Software industry, placing it in the top 61.6%.
Is Samsara's Operating Margin % too high?
Samsara's current Operating Margin % is 1.50%. The Software industry median Operating Margin % is 3.88. Samsara's value of 1.50% is 61.3% below this industry median. Based on the distribution chart, Samsara ranks #1737 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Samsara has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Samsara's Operating Margin % compare to OKTA and FFIV?
According to the Software industry distribution chart, Samsara ranks #1737 out of 2818 companies for Operating Margin %. This places Samsara in the lower half of its industry. The industry median Operating Margin % is 3.88. Samsara's value of 1.50% is 61.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Samsara's current Operating Margin % of 1.50% is 61.3% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Samsara and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Samsara's current Operating Margin % is 1.50%. 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 $56.17, compared to a current price of $31.14 — trading 44.6% below its estimated fair value. The current Operating Margin % is 1.50% and 61.3% below the Software industry median of 3.88. Samsara's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Samsara (IOT), the current Operating Margin % is 1.50% 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 $56.17.
GuruFocus considers Samsara to be Significantly Undervalued.
Key valuation signals for IOT:
Operating Margin %: 1.50%
GF Value™: $56.17 vs. price of $31.14 (44.6% below fair value)
Industry Position: 61.3% below the Software median (#1737 of 2818)
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.
76GF Score
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