Coverage ended 7 updates · Last at 4:36pm ET

Live: Is Samsara (IOT) Ready to Jump Post-Earnings Tonight?

By Joel South · Updated Sep 4, 4:36pm ET · Published Sep 4, 3:00pm ET

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Final Reactions

Metric Prior Street New Company Guide Δ
FY26 Revenue $1.55B $1.574–1.578B ▲
FY26 EPS $0.41 $0.45–0.47 ▲

Sentiment Signals:

  • Bullish: 30% ARR growth, big customer expansion, raised guide.

  • Neutral: Still posting GAAP net losses.

  • Bearish: Heavy stock-based comp ($81M in Q2) remains a drag.

What Changed This Quarter

  • Revenue growth held at 30% YoY, while most SaaS peers are decelerating.

  • Operating leverage jumped 9 pts YoY as sales & marketing efficiency improved.

  • Cash flow conversion strengthened — now generating double-digit free cash flow margins.

  • International and vertical expansions (transportation, logistics, industrials) remain strong growth vectors.

Key Operating Highlights

  • ARR: $1.64B, +30% YoY.
  • Large customer momentum: 2,771 customers >$100K ARR (up from 2,120 last year).
  • Customers >$1M ARR now >20% of total ARR.
  • Non-GAAP operating margin 15%, up from 6% a year ago.
  • Free cash flow: $44M, margin 11% vs. 4% last year.

Guidance Update

Across-the-board raises show confidence in sustaining 20%+ growth into FY26

Period New Guidance Street Consensus Direction
Q3 Rev $398–400M ~$386M 📈 Raised
Q3 EPS (Non-GAAP) $0.11–0.12 ~$0.10 📈 Raised
FY26 Rev $1.574–1.578B $1.55B 📈 Raised
FY26 EPS (Non-GAAP) $0.45–0.47 $0.41 📈 Raised

 

Management Commentary

CEO Sanjit Biswas: “We’re seeing firsthand how the rise of the AI-driven economy is amplifying demand for our platform. We are innovating at an unprecedented pace and are excited to deliver even greater impact for our customers.

Message: AI workflows are driving secular demand tailwinds, strengthening conviction in long-term growth.

Solid Beat By IOT

Samsara (IOT) Q2 FY2026 Post-Earnings Recap — stock up ~7.7% AH as execution stays strong:

First Take

Metric Actual Estimate Beat/Miss
Revenue $391.5M $372.2M ✅ Beat
EPS (Non-GAAP) $0.12 $0.07 ✅ Beat
ARR $1.64B $1.55B ✅ Beat

  • Shares rally ~7–8% AH after a broad beat on revenue, EPS, and ARR.

  • Street reaction centers on durable 30% growth with margin leverage, proving IOT remains one of SaaS’s cleanest growth stories.

Earnings History & Price Reaction

Quarter EPS Surprise 1-Day Move 7-Day Move 14-Day Move
Q1 2026 +83.33% −4.55% −17.21% −15.94%
Q4 2025 +57.14% −15.57% −6.97% −0.50%
Q3 2025 +75.00% −5.19% −14.46% −17.36%
Q2 2025 +400.00% +13.60% +21.14% +27.43%

Average 7-day move (last 4): −4.37%

Live coverage has ended. The full story is below.

Full Coverage

The story so far

Samsara (Nasdaq:IOT) enters Q2 with momentum — ARR reached $1.54B (+31% YoY), non-GAAP gross margin hit a record 79%, and operating margin rose to 14% last quarter. Management flagged elongated sales cycles tied to tariff-driven customer spending priorities, but noted many deals closed in May and Q1 pipeline hit a record; Q2 guide calls for revenue of $371–$373M and non-GAAP EPS of $0.06–$0.07. Dollar-based net retention ran about 115%, and large-customer count ($100k+ ARR) climbed to 2,638 (+35% YoY).

What to Expect When Samsara Reports

Wall Street’s consensus for Q2 FY26 (July quarter) and beyond:

  • Revenue (Q2): $372.22M
  • EPS (Q2): $0.07
  • FY2026: $1.55B revenue, $0.41 EPS
  • FY2027: $1.89B revenue, $0.51 EPS

Key Areas to Watch Tonight

  1. Deal timing vs. demand. Q1 billings were light on timing as incentives reduced early renewals; the company still expects ~24% FY26 revenue growth and ~13% operating margin. Track Q2 commentary for normalization.

  2. Multiproduct expansion. 95% of $100k+ customers use two or more products; 66% use three or more. Upsell breadth is the core DBNR driver.

  3. OEM & software-only mix. New integrations with Hyundai Translead, Stellantis, and Rivian reduce friction and should be margin-accretive as they scale; asset-tags and other software-only SKUs are also GM positive.

  4. International acceleration. 18% of net-new ACV came from international (record mix), with Europe the standout; look for continued strength.

  5. Vertical/AI momentum. Transportation growth hit a multi-year high; AI-driven safety and maintenance workflows (e.g., predictive fault insights) underpin larger expansions.

Contact [email protected] for any questions or corrections.

Joel South

Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.

He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.

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