Samsara Q2 Earnings Call Highlights

Key Points

• Strong Q2 growth and profitability: Samsara’s ARR and revenue both increased 30% year over year to $2.1 billion and $508 million, respectively. The company posted $0.03 in GAAP EPS and its fourth consecutive quarter of GAAP profitability.
• Enterprise and multi-product adoption accelerated: Samsara added a record 242 customers generating at least $100,000 in ARR, while ARR from its $1 million-plus customer cohort rose more than 50%. AI and emerging products contributed broadly to bookings, with 96% of large customers using at least two products.
• Full-year outlook remains positive, but cash flow faces pressure: Samsara expects fiscal 2027 revenue of $2.043 billion to $2.047 billion and a 21% non-GAAP operating margin. Free-cash-flow margin is expected to decline by about 100 basis points due to higher IoT-device purchases, inventory investments and supply-chain costs.

Samsara NYSE: IOT reported second-quarter fiscal 2027 results marked by 30% year-over-year growth in annual recurring revenue and revenue, while the provider of connected operations software expanded its large-customer base and maintained GAAP profitability.

The company ended the quarter with $2.1 billion in ARR, up 30% from a year earlier, after adding $134 million in net new ARR. Revenue rose 30% year over year to $508 million, or 29% in constant currency. CFO Dominic Phillips said net new ARR grew 28% year over year in constant currency, representing the company’s second-highest growth rate over the past 10 quarters.

Samsara also reported GAAP earnings per share of $0.03, its fourth consecutive quarter of GAAP profitability. Non-GAAP operating margin was 21%, improving six percentage points from a year earlier, while free cash flow margin was 13%.

Large Customers and Multi-Product Adoption Drive Growth

Large enterprises remained an important source of growth. Samsara added a quarterly record 242 customers with at least $100,000 in ARR and 20 customers with at least $1 million in ARR. The company ended the quarter with 3,605 customers in the $100,000-plus ARR cohort, which accounted for $1.3 billion in ARR and grew 38% year over year.

The company also ended the period with 210 customers generating at least $1 million in ARR. ARR from those customers surpassed $500 million and increased more than 50% year over year, according to Phillips.

Multi-product adoption continued to increase among larger customers. Phillips said 96% of customers with at least $100,000 in ARR subscribed to two or more products, while 72% subscribed to three or more. Nine of Samsara’s 10 largest net new annual contract value transactions during the quarter included at least two products.

Phillips said the company met its target dollar-based net retention rate of approximately 115% for core customers. More than 20% of net new ACV came from emerging products for the third consecutive quarter, and more than 60 transactions included over $100,000 in emerging-product net new ACV.

New Products Expand AI and Operations Offerings

At its Beyond customer conference in June, Samsara introduced products and features intended to expand its use of artificial intelligence across physical operations. The company said more than 4,000 people attended the event and that adoption of certain recently introduced AI features increased more than fourfold over the prior two months.

• Tracking Label: A single-use Bluetooth label designed to provide near-real-time shipment visibility across carriers.
• 360 Camera and AI Multicam: Camera offerings for operated equipment and vehicles intended to improve visibility and identify safety risks.
• Waste Intelligence and Ground Intelligence: AI applications for verifying waste-service events, identifying overfilled bins, and detecting road defects.
• AI agents: Tools for safety, maintenance and dispatch workflows, including warranty recovery, driver coaching and back-office dispatch tasks.

Management said the new products have contributed broadly to bookings rather than being concentrated in a single offering. During the question-and-answer session, the company said no one new product represented more than half of emerging-product bookings in the quarter.

Samsara said it collected more than 30 trillion data points annually on its platform, up more than 40% year over year. That information includes data from vehicles, powered and unpowered equipment, job sites and frontline workers. Over the past year, customers drove more than 105 billion miles and digitized 340 million workflows, according to the company.

Public Sector, International Markets Contribute

Field services was Samsara’s largest vertical by net new ACV during the quarter, posting its highest mix in more than two years. Transportation was the second-largest contributor, while public sector delivered its second-highest net new ACV mix, Phillips said.

Public-sector growth included deals involving a top-five U.S. city, the Massachusetts Bay Transportation Authority and the state of Louisiana. The city deal included more than $2 million from emerging products, including AI Multicam, Connected Maintenance and Ground Intelligence.

International markets represented 18% of net new ACV, tying a quarterly record. Europe delivered its second-highest net new ACV mix and its fourth consecutive quarter of more than 50% net new ACV growth, aided by the company’s largest mainland Europe transaction with one of the world’s largest e-commerce companies. Mexico also posted accelerating year-over-year net new ACV growth.

Outlook Includes Higher Inventory and Supply Chain Costs

For the third quarter, Samsara forecast revenue of $514 million to $516 million, representing 24% year-over-year growth, or 23% to 24% growth in constant currency. It expects a 21% non-GAAP operating margin, non-GAAP EPS of $0.18 to $0.19, and GAAP profitability.

For fiscal 2027, the company projected revenue of $2.043 billion to $2.047 billion, or 26% growth year over year. Samsara expects a 21% non-GAAP operating margin, non-GAAP EPS of $0.76 to $0.78, and GAAP profitability for the full year.

Phillips said the company now expects free cash flow margin to be approximately 100 basis points below fiscal 2026 levels. He attributed the expected decline primarily to increased purchases of IoT devices to support stronger demand, proactive inventory purchases, and elevated supply-chain costs in the second half of the year. He said the company views these pressures as temporary and expects operating margin to be a better indicator of underlying profitability in a more normalized supply-chain environment.

About Samsara (NYSE:IOT)

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.

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