Key Highlights

● Annual recurring revenue reached $2,124.7 million, up 30%.

● Revenue was $508.4 million, up 30%, or 29% in constant currency.

● GAAP operating income was $4.9 million against a $26.6 million loss.

● Full-year revenue guidance is $2.043 billion to $2.047 billion.

Samsara Inc. (NYSE:IOT) reported results for its second quarter of fiscal 2027, which ended on 1 August 2026, on 3 September 2026. Annual recurring revenue (ARR) reached $2,124.7 million, up 30% year on year, and the company recorded a GAAP profit for the fourth consecutive quarter.

Business and sector

Samsara provides a Connected Operations Cloud that gathers data from sensors, cameras and vehicle gateways to help organisations that run physical operations, such as fleets, construction firms and logistics businesses, manage safety, efficiency and compliance. It competes in the market for fleet telematics and industrial Internet of Things software, where customers increasingly seek video-based safety tools and artificial intelligence analytics.

During the period the company launched Agent Studio, a no-code platform for building artificial intelligence agents for physical operations, and said adoption had grown sevenfold since June. Its chief executive also said that customer use of some newer AI features had risen more than fourfold over the previous two months. The Samsara Tracking Label was named in TIME's Best Inventions of 2026 in the logistics category.

Latest results

Revenue was $508.4 million, up 30%, or 29% in constant currency. Net new ARR was $134.1 million, up 28%. GAAP operating income was $4.9 million, a 1% margin, compared with a loss of $26.6 million a year earlier. Non-GAAP operating income was $106.0 million, a 21% margin, against $59.7 million, or 15%. GAAP earnings per share were $0.03 and non-GAAP earnings per share were $0.20.

Financial performance and industry context

Free cash flow was $64.7 million, a 13% margin. At 1 August 2026 Samsara held cash and cash equivalents of $291.4 million, short-term investments of $537.5 million and long-term investments of $496.8 million, which together come to about $1.33 billion.

The company recognised a $30.3 million gain from an arbitration award against Motive Technologies in the first six months of the fiscal year. It excludes the gain from non-GAAP net income.

For the third quarter Samsara guided to revenue of $514 million to $516 million, about 24% growth, and non-GAAP earnings per share of $0.18 to $0.19. For the full fiscal year it guided to revenue of $2.043 billion to $2.047 billion, about 26% growth, a non-GAAP operating margin of 21% and non-GAAP earnings per share of $0.76 to $0.78.

Risks and uncertainties

Guided revenue growth of about 24% for the third quarter is below the 30% just reported, so the pace of expansion is expected to moderate. GAAP profitability is thin, with a margin of 1%, and the company's results can be affected by stock-based compensation, litigation outcomes and currency movements. Fleet customers are exposed to freight cycles and economic conditions that may slow new orders. Newer AI products are at an early stage, and competition in video safety and telematics is intense.

Moderating growth and operating leverage

The next report, for the third quarter of fiscal 2027, should show whether revenue falls within the guided range and how net new ARR trends. Other points to watch include the progress of Agent Studio, the evolution of GAAP operating margin and the use of the company's cash and investment balances. The rise in non-GAAP operating margin from 15% to 21% in a year, and four straight GAAP profits, will test whether operating leverage persists as growth moderates.