Samsara (NYSE:IOT) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Samsara (NYSE:IOT) announced its quarterly earnings data on Thursday. The company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.04, Briefing.com reports. Samsara had a net margin of 3.32% and a return on equity of 2.00%. During the same quarter last year, the company posted $0.12 EPS. The business’s revenue was up 29.9% on a year-over-year basis. Samsara updated its FY 2027 guidance to 0.760-0.780 EPS and its Q3 2027 guidance to 0.180-1.090 EPS.

Here are the key takeaways from Samsara’s conference call:

• Growth accelerated at scale, with Q2 ARR reaching $2.1 billion, up 30% year over year, and net new ARR rising 28% in constant currency. Revenue was $508 million, while the company delivered its fourth consecutive quarter of GAAP profitability.
• Large customers remain the primary growth engine, with $100,000-plus customers’ ARR increasing 38% to $1.3 billion and $1 million-plus customers’ ARR growing more than 50%. Samsara added quarterly-record numbers of both customer cohorts, supported by multi-product expansions.
• Emerging products and AI are gaining traction, contributing more than 20% of net new ACV for the third consecutive quarter. Adoption of recent AI features increased more than fourfold in two months, with over 1,000 customers engaging with AI-agent use cases.
• Management lowered its full-year free cash flow margin outlook by approximately 100 basis points, citing faster growth requiring more IoT hardware, inventory pre-purchases, and elevated supply-chain costs. Executives expect the pressure to be temporary, but hardware costs could weigh on cash generation and potentially gross margins in the near term.
• FY2027 guidance calls for revenue of $2.043 billion to $2.047 billion, or 26% growth, with a 21% non-GAAP operating margin and continued GAAP profitability. Management said the outlook is deliberately de-risked and assumes more normalized bookings linearity in the remaining quarters.

Samsara Price Performance

IOT traded up $1.95 on Thursday, reaching $38.74. 15,892,066 shares of the company traded hands, compared to its average volume of 6,867,105. The company has a market cap of $22.57 billion, a price-to-earnings ratio of 387.44, a PEG ratio of 8.77 and a beta of 1.35. The stock’s 50 day moving average price is $37.39 and its 200-day moving average price is $33.09. Samsara has a 52-week low of $23.38 and a 52-week high of $47.47.

Key Samsara News

Here are the key news stories impacting Samsara this week:

• Positive Sentiment: Quarterly earnings beat expectations: Samsara reported adjusted earnings of $0.20 per share, above the $0.17 Zacks consensus estimate and up from $0.12 a year earlier. Samsara Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Durable growth continued: Annual recurring revenue surpassed $2.1 billion, increasing 30% year over year for the third consecutive quarter. Samsara also reported a quarterly record for new customers generating at least $1 million in ARR, while enterprise ARR reportedly grew 50%. Samsara Fiscal Second-Quarter Results
• Positive Sentiment: Full-year outlook was increased: The higher forecast signals management expects continued demand for its connected-operations and AI platform, particularly as large enterprises standardize operations across vehicles, equipment, sites and frontline workers. Samsara Boosts Full-Year Outlook
• Neutral Sentiment: Valuation remains a risk factor: Samsara had already risen sharply over the preceding month, and one report noted that the consensus price target was below the prevailing share price. This raises the bar for future results despite the strong quarter. Samsara or UiPath Investment Comparison
• Neutral Sentiment: Conflicting secondary data: A MarketBeat item listed an EPS miss, but that figure conflicts with Samsara’s reported results and multiple contemporaneous reports showing a $0.20-per-share beat. Investors should rely on the company’s shareholder letter and official filing for final figures.

Insider Buying and Selling at Samsara

In related news, insider Adam Eltoukhy sold 6,876 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $39.82, for a total transaction of $273,802.32. Following the completion of the sale, the insider directly owned 425,080 shares in the company, valued at approximately $16,926,685.60. This trade represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Bicket sold 34,557 shares of Samsara stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $39.44, for a total value of $1,362,928.08. Following the sale, the insider directly owned 1,134,795 shares of the company’s stock, valued at approximately $44,756,314.80. The trade was a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 4,478,170 shares of company stock valued at $159,242,120 in the last quarter. Company insiders own 35.13% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Brighton Jones LLC bought a new stake in shares of Samsara in the 4th quarter valued at approximately $13,464,000. Orion Porfolio Solutions LLC bought a new position in Samsara during the fourth quarter valued at approximately $205,000. CIBC Private Wealth Group LLC lifted its stake in Samsara by 473.0% in the fourth quarter. CIBC Private Wealth Group LLC now owns 3,163 shares of the company’s stock valued at $112,000 after acquiring an additional 2,611 shares during the last quarter. Principal Securities Inc. lifted its stake in Samsara by 44.4% in the fourth quarter. Principal Securities Inc. now owns 6,097 shares of the company’s stock valued at $216,000 after acquiring an additional 1,874 shares during the last quarter. Finally, Turim 21 Investimentos Ltda. bought a new stake in Samsara in the third quarter worth approximately $159,000. 96.02% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Guggenheim started coverage on shares of Samsara in a research note on Wednesday, July 22nd. They set a “buy” rating and a $45.00 price target on the stock. Truist Financial upped their price objective on Samsara from $30.00 to $38.00 and gave the stock a “hold” rating in a report on Wednesday, August 19th. Weiss Ratings raised Samsara from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. BTIG Research reissued a “buy” rating and set a $45.00 price target on shares of Samsara in a research report on Friday, June 26th. Finally, Wolfe Research restated an “outperform” rating on shares of Samsara in a research note on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $46.67.

Samsara Company Profile

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.