Samsara (NYSE:IOT) Releases Earnings Results, Beats Expectations By $0.04 EPS

Samsara (NYSE:IOT) issued its quarterly earnings data on Thursday. The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.04, Briefing.com reports. The firm had revenue of $508.44 million for the quarter, compared to analyst estimates of $483.29 million. Samsara had a net margin of 3.32% and a return on equity of 2.00%. Samsara’s revenue was up 29.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.12 EPS. Samsara updated its FY 2027 guidance to 0.760-0.780 EPS and its Q3 2027 guidance to 0.180-1.090 EPS.

Here are the key takeaways from Samsara’s conference call:

• Growth accelerated at scale, with Q2 ARR reaching $2.1 billion, up 30% year over year, and net new ARR rising 28% in constant currency. Revenue was $508 million, while the company delivered its fourth consecutive quarter of GAAP profitability.
• Large customers remain the primary growth engine, with $100,000-plus customers’ ARR increasing 38% to $1.3 billion and $1 million-plus customers’ ARR growing more than 50%. Samsara added quarterly-record numbers of both customer cohorts, supported by multi-product expansions.
• Emerging products and AI are gaining traction, contributing more than 20% of net new ACV for the third consecutive quarter. Adoption of recent AI features increased more than fourfold in two months, with over 1,000 customers engaging with AI-agent use cases.
• Management lowered its full-year free cash flow margin outlook by approximately 100 basis points, citing faster growth requiring more IoT hardware, inventory pre-purchases, and elevated supply-chain costs. Executives expect the pressure to be temporary, but hardware costs could weigh on cash generation and potentially gross margins in the near term.
• FY2027 guidance calls for revenue of $2.043 billion to $2.047 billion, or 26% growth, with a 21% non-GAAP operating margin and continued GAAP profitability. Management said the outlook is deliberately de-risked and assumes more normalized bookings linearity in the remaining quarters.

Samsara Price Performance

NYSE IOT opened at $38.74 on Friday. The company has a market cap of $22.57 billion, a P/E ratio of 387.44, a P/E/G ratio of 8.26 and a beta of 1.35. The stock has a 50-day moving average of $37.59 and a two-hundred day moving average of $33.17. Samsara has a 1-year low of $23.38 and a 1-year high of $47.47.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Royal Bank Of Canada lifted their price target on shares of Samsara from $42.00 to $50.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Guggenheim began coverage on shares of Samsara in a report on Wednesday, July 22nd. They issued a “buy” rating and a $45.00 price objective on the stock. TD Cowen increased their price objective on shares of Samsara from $45.00 to $48.00 and gave the stock a “buy” rating in a research report on Thursday, August 20th. Wolfe Research reiterated an “outperform” rating on shares of Samsara in a report on Thursday, June 11th. Finally, Bank of America reiterated a “buy” rating on shares of Samsara in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $46.67.

More Samsara News

Here are the key news stories impacting Samsara this week:

• Positive Sentiment: Fiscal Q2 revenue rose 29.9% year over year to $508.4 million, exceeding the $483.3 million analyst consensus. Adjusted earnings of $0.20 per share also topped the $0.16 estimate and increased from $0.12 a year earlier. Samsara Reports Second Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Samsara crossed $2.1 billion in annual recurring revenue, with ARR growth of 30% for the third consecutive quarter. Enterprise ARR reportedly surged 50%, while the company set a quarterly record for new customers generating more than $1 million in ARR—evidence of increasing adoption among large organizations. Samsara Crosses $2.1 Billion in ARR
• Positive Sentiment: Management raised fiscal 2027 expectations. Full-year revenue is projected at approximately $2.043 billion to $2.047 billion, while full-year earnings guidance of $0.76 to $0.78 per share is well above the prior consensus estimate of $0.60. The company is also targeting a 21% non-GAAP operating margin, signaling improving operating leverage. Samsara Fiscal 2027 Outlook
• Positive Sentiment: Third-quarter revenue guidance of $514 million to $516 million is above the approximately $509.8 million analyst estimate, suggesting management expects growth momentum to continue. Samsara Raises Full-Year Outlook
• Neutral Sentiment: The results support the rally, but Samsara continues to carry a demanding valuation, making the stock sensitive to any slowdown in growth, weaker enterprise demand, or failure to meet its elevated guidance.

Insider Transactions at Samsara

In related news, insider Adam Eltoukhy sold 6,876 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $39.82, for a total transaction of $273,802.32. Following the sale, the insider directly owned 425,080 shares of the company’s stock, valued at $16,926,685.60. This represents a 1.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sanjit Biswas sold 35,366 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $39.43, for a total transaction of $1,394,481.38. Following the sale, the chief executive officer owned 935,671 shares in the company, valued at approximately $36,893,507.53. This trade represents a 3.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 4,458,623 shares of company stock valued at $158,550,351. 35.13% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP raised its position in Samsara by 97.1% in the 4th quarter. Wellington Management Group LLP now owns 6,269,398 shares of the company’s stock valued at $222,250,000 after purchasing an additional 3,088,299 shares in the last quarter. State Street Corp grew its position in shares of Samsara by 107.8% during the second quarter. State Street Corp now owns 5,611,956 shares of the company’s stock worth $223,244,000 after buying an additional 2,910,916 shares in the last quarter. Soma Equity Partners LP acquired a new position in shares of Samsara during the third quarter worth about $52,672,000. Alyeska Investment Group L.P. purchased a new stake in shares of Samsara during the fourth quarter worth approximately $43,719,000. Finally, Freestone Grove Partners LP raised its holdings in Samsara by 435.6% in the third quarter. Freestone Grove Partners LP now owns 1,401,983 shares of the company’s stock valued at $52,224,000 after acquiring an additional 1,140,227 shares in the last quarter. 96.02% of the stock is owned by institutional investors and hedge funds.

About Samsara

Samsara develops an industrial Internet of Things (IoT) platform designed to help organizations monitor, manage, and optimize physical operations. The company combines connected hardware — including telematics devices, GPS trackers, dash cameras, and environmental sensors — with cloud-based software to provide real-time visibility into vehicles, mobile equipment, and fixed assets. Its software offers tools for fleet management, driver and worker safety, asset tracking, compliance (including electronic logging), maintenance scheduling, and operational analytics.

The Samsara platform emphasizes integration of live data streams with analytics and workflow features to drive efficiency and safety across industries that rely on dispersed equipment and mobile workforces.