Samsara Earnings Show Strong ARR Growth
Samsara earnings showed ARR and revenue growth with GAAP profitability; crossing $2.1 billion ARR and issuing FY27 guidance should affect investor flows.
KEY TAKEAWAYS
- Samsara reported ARR of $2.1247 billion, up 30.0% year over year.
- Revenue was $508.4 million and free cash flow totaled $64.7 million.
- Management set FY27 revenue guidance of $2.043-$2.047 billion and EPS $0.76-$0.78.
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Samsara Inc. (NYSE: IOT) reported second-quarter fiscal 2027 results for the period ended Aug. 1, 2026, on Sept. 3, showing accelerating annual recurring revenue (ARR) and revenue growth alongside sustained GAAP profitability. The company also issued guidance for fiscal 2027.
Quarter Results and Cash Flow
Samsara posted ARR of $2.1 billion and revenue of $508.4 million, each rising 30.0% year over year. Net new ARR reached $134 million, up 28.0% from the prior year. The company recorded GAAP earnings per share of $0.03, marking its fourth consecutive quarter of GAAP profitability, and GAAP operating income of $4.9 million compared with a $26.6 million loss a year earlier. Free cash flow totaled $64.7 million for the quarter.
Enterprise Customers and Fiscal 2027 Guidance
The company added 242 customers with more than $100,000 in ARR and 20 customers with over $1 million in ARR, both quarterly records. ARR from customers with $1 million or more exceeded $500 million and grew more than 50.0% year over year for the third straight quarter. Emerging products contributed over 20.0% of net new annual contract value for the third consecutive quarter.
For fiscal 2027, Samsara set revenue guidance between $2.043 billion and $2.047 billion and non-GAAP earnings per share guidance of $0.76 to $0.78. It targeted a non-GAAP operating margin of 21% and expects to remain GAAP profitable for the full year. Management now anticipates free cash flow margin to be roughly 100 basis points lower than in fiscal 2026, citing increased deployment of Internet of Things (IoT) devices, proactive inventory purchases, and elevated supply-chain costs in the second half.
The quarter’s sustained top-line growth, consecutive GAAP profitability, and explicit fiscal 2027 targets indicate a shift toward more durable, cash-generative growth and set investor expectations for the company’s outlook.
“Samsara delivered another quarter of durable and efficient growth, crossing $2.1 billion in ARR with 30% year-over-year growth for the third consecutive quarter,” the company said in its press release.
