Samsara's stock rose sharply after the company beat earnings and revenue expectations for its fiscal second quarter and secured major customer wins.

Samsara Shares Advance Following Strong Second Quarter Earnings and Raised Outlook

Samsara Inc. (NYSE: IOT) saw its shares advance significantly following the release of its fiscal second quarter 2026 financial results, which surpassed analyst expectations for both earnings and revenue. The strong performance was underpinned by robust growth in Annual Recurring Revenue (ARR) and substantial customer wins, particularly among larger enterprises.

The Event in Detail

For the second quarter ended August 2, 2025, Samsara reported adjusted earnings of $0.12 per share, significantly exceeding the Zacks Consensus Estimate of $0.07 per share by 71.4%. This marks the fourth consecutive quarter Samsara has beaten consensus earnings estimates. Revenues for the quarter reached $391.5 million, a 30% increase year-over-year, and comfortably above the Zacks Consensus Estimate of $372.22 million.

Annual Recurring Revenue (ARR), a key metric for software-as-a-service companies, climbed to $1.640 billion, representing a 30% year-over-year growth. The company also reported adding $105 million in net new ARR, a 19% increase year-over-year. The number of customers with over $100,000 in ARR surged by 31% year-over-year, now totaling 2,771 and contributing nearly $1 billion to Samsara's total ARR. Additionally, the company secured 17 new customers with over $1 million in ARR during the quarter, with these high-value customers now accounting for more than 20% of the total ARR.

Analysis of Market Reaction

The market reacted positively to Samsara's strong financial results, with shares of IOT rising sharply, noted at +17.44% following the announcement. This surge reflects investor confidence in the company's operational momentum and its ability to attract and retain large customers. The significant beat on both the top and bottom lines, coupled with optimistic guidance, signals robust demand for Samsara's Internet of Things (IoT) platform.

Sanjit Biswas, CEO and co-founder of Samsara, highlighted the crucial role of current economic trends in driving the company's success:

"We're seeing firsthand how the rise of the AI-driven economy is amplifying demand for our platform."

This statement underscores the strategic alignment of Samsara's offerings with prevailing technological shifts towards AI-powered operational efficiency. The company’s improved profitability, with a non-GAAP operating margin of 15.2% and adjusted operating income of $59.7 million (exceeding estimates of $33.6 million), further contributed to the positive sentiment.

Broader Context and Implications

Samsara operates within the rapidly expanding AI-driven Internet of Things sector, positioning itself as a key enabler of real-time operational intelligence across various industries. The company's platform is integral for businesses seeking to track and manage vehicles, equipment, and broader operations, driving efficiency, safety, and sustainability.

Key customer acquisitions in Q2 FY26 included Alaska Airlines, SRM Concrete, and Bonnie Plants, along with a significant Fortune 1000 rental equipment company. A notable success story includes Mohawk Industries, the world's largest flooring manufacturer, which reported $7.75 million in annual savings by reducing mileage by 25% through the Samsara platform. This demonstrates the tangible Return on Investment (ROI) Samsara provides to its clients.

Samsara's commitment to innovation is evident in its research and development (R&D) investment, which stands at 23.21% of its revenue—among the highest in its sector. The platform currently supports over 20.1 billion connected devices globally, a number expected to grow with advancements in 5G and edge computing. The company's public sector Annual Recurring Revenue (ARR) also saw substantial growth, increasing 36% from fiscal year 2024 to nearly $1.5 billion by fiscal year 2025.

While the company's shares experienced a significant gain following the earnings report, it is worth noting that the stock was down approximately 5% year-to-date prior to this advance, indicating a substantial recovery and renewed investor interest.

Looking Ahead

Samsara has raised its financial outlook for both the upcoming quarter and the full fiscal year 2026, signaling continued confidence in its growth trajectory. For the third quarter of fiscal 2026, the company projects revenues between $398 million and $400 million, representing a 24% year-over-year growth. For the full fiscal year 2026, Samsara anticipates total revenues in the range of $1.574 billion to $1.578 billion, implying a 26% year-over-year growth, an increase from its previous estimate.

Non-GAAP diluted Earnings Per Share (EPS) for the full fiscal year 2026 are now expected to be between $0.45 and $0.47, up from the earlier outlook of $0.39 to $0.41. Analysts are increasingly confident in Samsara's financial trajectory, with many revising their earnings forecasts upwards. The company's Altman Z-Score of 12.52 indicates strong financial health, positioning Samsara for continued expansion in the evolving landscape of connected operations and AI-driven IoT.