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Samsara posted 30% revenue growth and $2.125 billion in ARR, up 30% year over year.
Large customers drove expansion, with $100,000-plus ARR accounts reaching 3,605 and ARR up 38%.
Samsara raised its fiscal 2027 revenue midpoint 2% while projecting a 21% operating margin.
Samsara Inc. (IOT - Free Report) delivered better-than-expected second-quarter fiscal 2027 results. Non-GAAP earnings of 20 cents per share beat the Zacks Consensus Estimate by 17.7% and rose 66.7% year over year.
Revenues of $508.4 million increased 30% year over year and surpassed the consensus estimate by 5.2%. On a constant-currency basis, revenues grew 29%.
Growth was supported by large-customer expansion, multi-product adoption and emerging products. Ending annual recurring revenues, or ARR, reached $2.125 billion, up 30% year over year.
IOT's Net New ARR Growth Accelerates
Net new ARR was $134.1 million, up 28% year over year in both actual and constant currency. On a trailing-12-month basis, net new ARR totaled $485 million and grew 27% in constant currency, up from 14% growth in the year-ago period.
The company signed nine transactions with more than $1 million in net new annual contract value. This was its third-highest quarterly total. Management said second-quarter revenue outperformance reflected strong bookings and slightly better booking timing than in prior quarters.
Samsara's Large Customers Drive Expansion
IOT ended the quarter with 3,605 customers generating more than $100,000 in ARR, a quarterly increase of 242. ARR from this cohort reached $1.3 billion, up 38% year over year, and represented 63% of total ARR compared with 59% a year earlier.
The company also had 210 customers above $1 million in ARR after adding a record 20 during the quarter. ARR from these customers surpassed $500 million and grew more than 50% year over year for the third straight quarter. Average ARR per $100,000-plus customer rose 6% to $369,000.
IOT Benefits From Broader Product Adoption
Multi-product adoption remained a key expansion lever. Among $100,000-plus ARR customers, 96% subscribed to at least two products and 72% used three or more products, compared with 95% and 68%, respectively, a year ago. Core-customer dollar-based net retention, which reflects expansion net of contraction and attrition, was approximately 115%.
Emerging products contributed more than 20% of net new annual contract value, or ACV, for the third consecutive quarter. Eight of the top 10 net new ACV deals included an emerging product, while more than 60 transactions carried over $100,000 of emerging-product net new ACV. Customer adoption of some newer AI features increased more than fourfold in the last two months.
Samsara Expands Operating Profitability
Non-GAAP gross profit was $398 million, up from $305.7 million a year ago, while non-GAAP gross margin held at 78%. Non-GAAP operating income increased to $106 million from $59.7 million, and the operating margin expanded to 21% from 15%.
Non-GAAP sales and marketing expenses rose to $188.3 million from $148.7 million, but fell to 37% of revenues from 38%. R&D expenses increased to $65.1 million from $54.3 million, while the company’s revenue share declined to 13% from 14%. G&A expenses fell to $38.6 million from $43.0 million.
IOT Generates Higher Cash Flow
Operating cash flow increased to $73.5 million from $50.2 million in the year-ago quarter. Free cash flow rose to $64.7 million from $44.2 million, with the free cash flow margin at 13% compared with 11% a year earlier.
As of Aug. 1, 2026, cash and cash equivalents were $291.4 million compared with $318.8 million as of Jan. 31. Short-term investments increased to $537.5 million from $515.0 million over the same period.
Samsara Lifts Fiscal 2027 Revenue View
For the third quarter of fiscal 2027, Samsara expects revenues of $514-$516 million, indicating 24% year-over-year growth. The company projects a non-GAAP operating margin of 21% and non-GAAP earnings of 18-19 cents per share.
For fiscal 2027, revenues are projected at $2.043-$2.047 billion, up 26% year over year, with a 21% non-GAAP operating margin and non-GAAP earnings of 76-78 cents per share. The new revenue midpoint suggests a 2% raise from prior guidance.
Management expects the full-year free cash flow margin to be about 100 basis points below fiscal 2026 because of higher device needs, proactive inventory purchases and elevated supply-chain costs.
AEIS shares have risen 28.1% in the year-to-date period. The Zacks Consensus Estimate for AEIS’ third-quarter 2026 earnings suggests year-over-year growth of 74.7%. The consensus estimate has been revised upward in the past 30 days.
ALAB shares have gained 64.8% in the year-to-date period. The Zacks Consensus Estimate for ACIW’s third-quarter 2026 earnings indicates a year-over-year growth of 143%. The consensus estimate has been revised upward in the past 30 days.
ACMR shares have surged 77.2% in the year-to-date period. The Zacks Consensus Estimate for ACMR’s third-quarter 2026 earnings suggests a year-over-year rise of 143%. The consensus estimate has been revised upward in the past 30 days.
View the Zacks #1 Rank List
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Samsara Q2 Earnings Surpass Estimates, Revenues Rise Y/Y
Key Takeaways
Samsara Inc. (IOT - Free Report) delivered better-than-expected second-quarter fiscal 2027 results. Non-GAAP earnings of 20 cents per share beat the Zacks Consensus Estimate by 17.7% and rose 66.7% year over year.
Revenues of $508.4 million increased 30% year over year and surpassed the consensus estimate by 5.2%. On a constant-currency basis, revenues grew 29%.
Growth was supported by large-customer expansion, multi-product adoption and emerging products. Ending annual recurring revenues, or ARR, reached $2.125 billion, up 30% year over year.
IOT's Net New ARR Growth Accelerates
Net new ARR was $134.1 million, up 28% year over year in both actual and constant currency. On a trailing-12-month basis, net new ARR totaled $485 million and grew 27% in constant currency, up from 14% growth in the year-ago period.
Samsara Inc. Price, Consensus and EPS Surprise
Samsara Inc. price-consensus-eps-surprise-chart | Samsara Inc. Quote
The company signed nine transactions with more than $1 million in net new annual contract value. This was its third-highest quarterly total. Management said second-quarter revenue outperformance reflected strong bookings and slightly better booking timing than in prior quarters.
Samsara's Large Customers Drive Expansion
IOT ended the quarter with 3,605 customers generating more than $100,000 in ARR, a quarterly increase of 242. ARR from this cohort reached $1.3 billion, up 38% year over year, and represented 63% of total ARR compared with 59% a year earlier.
The company also had 210 customers above $1 million in ARR after adding a record 20 during the quarter. ARR from these customers surpassed $500 million and grew more than 50% year over year for the third straight quarter. Average ARR per $100,000-plus customer rose 6% to $369,000.
IOT Benefits From Broader Product Adoption
Multi-product adoption remained a key expansion lever. Among $100,000-plus ARR customers, 96% subscribed to at least two products and 72% used three or more products, compared with 95% and 68%, respectively, a year ago. Core-customer dollar-based net retention, which reflects expansion net of contraction and attrition, was approximately 115%.
Emerging products contributed more than 20% of net new annual contract value, or ACV, for the third consecutive quarter. Eight of the top 10 net new ACV deals included an emerging product, while more than 60 transactions carried over $100,000 of emerging-product net new ACV. Customer adoption of some newer AI features increased more than fourfold in the last two months.
Samsara Expands Operating Profitability
Non-GAAP gross profit was $398 million, up from $305.7 million a year ago, while non-GAAP gross margin held at 78%. Non-GAAP operating income increased to $106 million from $59.7 million, and the operating margin expanded to 21% from 15%.
Non-GAAP sales and marketing expenses rose to $188.3 million from $148.7 million, but fell to 37% of revenues from 38%. R&D expenses increased to $65.1 million from $54.3 million, while the company’s revenue share declined to 13% from 14%. G&A expenses fell to $38.6 million from $43.0 million.
IOT Generates Higher Cash Flow
Operating cash flow increased to $73.5 million from $50.2 million in the year-ago quarter. Free cash flow rose to $64.7 million from $44.2 million, with the free cash flow margin at 13% compared with 11% a year earlier.
As of Aug. 1, 2026, cash and cash equivalents were $291.4 million compared with $318.8 million as of Jan. 31. Short-term investments increased to $537.5 million from $515.0 million over the same period.
Samsara Lifts Fiscal 2027 Revenue View
For the third quarter of fiscal 2027, Samsara expects revenues of $514-$516 million, indicating 24% year-over-year growth. The company projects a non-GAAP operating margin of 21% and non-GAAP earnings of 18-19 cents per share.
For fiscal 2027, revenues are projected at $2.043-$2.047 billion, up 26% year over year, with a 21% non-GAAP operating margin and non-GAAP earnings of 76-78 cents per share. The new revenue midpoint suggests a 2% raise from prior guidance.
Management expects the full-year free cash flow margin to be about 100 basis points below fiscal 2026 because of higher device needs, proactive inventory purchases and elevated supply-chain costs.
Zacks Rank & Stocks to Consider
IOT currently carries a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Astera Labs (ALAB - Free Report) and ACM Research (ACMR - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. AEIS, ALAB and ACMR sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AEIS shares have risen 28.1% in the year-to-date period. The Zacks Consensus Estimate for AEIS’ third-quarter 2026 earnings suggests year-over-year growth of 74.7%. The consensus estimate has been revised upward in the past 30 days.
ALAB shares have gained 64.8% in the year-to-date period. The Zacks Consensus Estimate for ACIW’s third-quarter 2026 earnings indicates a year-over-year growth of 143%. The consensus estimate has been revised upward in the past 30 days.
ACMR shares have surged 77.2% in the year-to-date period. The Zacks Consensus Estimate for ACMR’s third-quarter 2026 earnings suggests a year-over-year rise of 143%. The consensus estimate has been revised upward in the past 30 days.