Samsara (IOT) IOT Q2 Financial Results Summary
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Samsara Inc. (IOT) Q2 FY2027: Strong Growth Continues — Positive Outlook
Samsara Inc. (NYSE: IOT) reported its second quarter fiscal year 2027 results, showcasing impressive growth metrics that highlight the company's ongoing momentum. The company achieved a total revenue of $508.4 million, marking a 30% increase compared to $391.5 million in the same quarter last year. This consistent growth trajectory is a positive indicator for shareholders, as it reflects the company's ability to expand its market presence effectively.
Key Financial Metrics
- Total Revenue: $508.4 million (up $116.9 million or +30% YoY)
- Annual Recurring Revenue (ARR): $2.125 billion (up $484.6 million or +30% YoY)
- Net New ARR: $134.1 million (up $29.4 million or +28% YoY)
- GAAP Earnings Per Share (EPS): $0.03 (up from -$0.03 YoY)
- Non-GAAP EPS: $0.20 (up from $0.12 YoY)
- Free Cash Flow: $64.7 million (up $20.5 million or +46% YoY)
Samsara's performance in Q2 FY2027 is particularly noteworthy as it marks the fourth consecutive quarter of GAAP profitability, with a GAAP net income of $4.9 million compared to a loss of $26.6 million in the prior year. This turnaround is a significant achievement and demonstrates the effectiveness of the company's operational strategies.
Analyst View
This quarter is undoubtedly a positive one for shareholders. The consistent revenue growth of 30% year-over-year, coupled with a substantial increase in ARR, indicates that Samsara is successfully scaling its operations and enhancing its customer base. The growth in net new ARR of 28% also suggests strong demand for its Connected Operations® Platform, particularly among larger customers, which generated over $500 million of ARR, reflecting over 50% year-over-year growth for the third consecutive quarter.
The company’s ability to maintain a GAAP gross margin of 77% and a non-GAAP gross margin of 78% further underscores its operational efficiency. Additionally, the increase in free cash flow to $64.7 million indicates a robust cash generation capability, which is crucial for funding future growth initiatives.
Dividend and Share Buyback
There were no announcements regarding dividends or share buybacks in this quarter's report. However, the strong cash flow position may provide the company with the flexibility to consider such actions in the future, depending on strategic priorities.
Guidance and Future Outlook
Looking ahead, Samsara has provided guidance for Q3 FY2027, expecting total revenue between $514 million and $516 million, which represents a year-over-year growth rate of 24%. For the full fiscal year 2027, the company anticipates total revenue in the range of $2.043 billion to $2.047 billion, reflecting a 26% growth rate. The guidance also indicates that Samsara expects to remain GAAP profitable, which is a critical factor for investor confidence.
Forward Catalyst
Investors should closely monitor the adoption rates of Samsara's latest AI features, which have reportedly increased more than 4x in the last two months. This surge in adoption could drive further revenue growth and enhance customer retention. Additionally, the upcoming quarterly results will provide insights into how effectively the company can sustain its growth trajectory and manage operational costs in a potentially challenging economic environment.
In summary, Samsara's Q2 FY2027 results reflect a strong performance with significant growth across key metrics, positioning the company favorably for continued success in the upcoming quarters.
SAMSARA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
(Unaudited)
Note: All amounts are in thousands.
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| August 1, 2026 | August 1, 2026 | |||
| August 2, 2025 | August 2, 2025 | |||
| Revenue | $508,437 | $987,281 | ||
| Cost of revenue | $115,856 | $233,557 | ||
| Gross profit | $392,581 | $753,724 | ||
| Operating expenses: | ||||
| Research and development | $102,556 | $200,123 | ||
| Sales and marketing | $67,376 | $120,154 | ||
| General and administrative | $387,706 | $741,654 | ||
| Total operating expenses | $387,706 | $741,654 | ||
| Income (loss) from operations | $4,875 | $12,070 | ||
| Interest income and other income | $12,654 | $54,386 | ||
| Net Income (loss) | $16,242 | $60,750 | ||
| Other comprehensive income (loss) | ||||
| Foreign currency translation adjustment, net of tax | $284 | $353 | ||
| Unrealized gains (losses) | $(2,500) | $(5,597) | ||
| Total other comprehensive income (loss) | $(2,216) | $(5,244) | ||
| Basic and diluted net income (loss) per share: | $0.03 | $0.10 | ||
| Weighted-average shares used to compute net income (loss) per share, basic | 584,131 | 582,985 | ||
| Weighted-average shares used to compute net income (loss) per share, diluted | 590,467 | 589,069 |
SAMSARA INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Note: All amounts are in thousands.
| As of August 1, 2026 | January 31, 2026 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $291,392 | $318,789 |
| Short-term investments | $537,536 | $515,003 |
| Accounts receivable, net | $337,792 | $321,442 |
| Inventories | $57,032 | $48,194 |
| Connected device costs, current | $155,670 | $142,904 |
| Deferred commissions, current | $95,030 | $85,463 |
| Prepaid expenses and other current assets | $98,315 | $75,323 |
| Total current assets | $1,572,767 | $1,507,118 |
| Long-term investments | $496,782 | $403,123 |
| Property and equipment, net | $88,030 | $81,607 |
| Operating lease right-of-use assets | $58,317 | $60,303 |
| Connected device costs, non-current | $333,878 | $297,245 |
| Deferred commissions, non-current | $199,224 | $176,415 |
| Other assets | $20,130 | $14,863 |
| Total assets | $2,769,128 | $2,540,674 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: |
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