Samsara Extends Third Quarter of 30% ARR Growth
Revenue reached $508.4 million as annual recurring revenue crossed $2.1 billion and GAAP earnings held for a fourth straight quarter.
Samsara Inc. (IOT), the Connected Operations platform company, reported second-quarter fiscal 2027 revenue of $508.4 million, up 30% from a year earlier and 29% in constant currency.
That year-over-year rate was a notch below the 31% growth recorded in the first quarter. Annual recurring revenue ended the period at $2.125 billion, matching the 30% year-over-year pace that had already held in both the first and fourth quarters of the fiscal year. Chief Executive Sanjit Biswas said the company had crossed $2.1 billion in ARR with 30% year-over-year growth for the third consecutive quarter.
Net new ARR was $134.1 million, up 28% year-over-year in both actual and constant currency. That added-ARR growth rate was below the 30% recorded in the first quarter and the 33% in the fourth quarter. Large accounts continued to carry a growing share of the book: customers with ARR over $1 million generated more than $500 million of ARR, a year-over-year increase of more than 50% for the third consecutive quarter. Biswas said customer adoption of some of the company’s latest AI features was up more than 4x in the last two months.
GAAP gross margin recovered to 77% from 75% in the first quarter; non-GAAP gross margin recovered to 78% from 76%. GAAP operating income was $4.9 million, or a 1% margin, compared with a $26.6 million operating loss, or a 7% margin, a year earlier. Non-GAAP operating income was $106.0 million, a 21% margin, versus $59.7 million, or 15%, a year earlier.
GAAP earnings were $0.03 a share, the fourth consecutive quarter of GAAP profitability, after $0.08 in the first quarter and $0.04 in the fourth. Non-GAAP earnings were $0.20 a share. Free cash flow was $64.7 million, a 13% margin, compared with $44.2 million, or 11%, a year earlier. Operating cash flow was $73.5 million, a 14% margin.
Cash and cash equivalents were $291.4 million at August 1, 2026, with short-term investments of $537.5 million and long-term investments of $496.8 million. Current deferred revenue was $728.9 million.
For the third quarter of fiscal 2027, Samsara expects total revenue of $514 million to $516 million, implying 24% year-over-year growth, or 23% to 24% in constant currency. That is a further step-down from the 30% year-over-year rate in the second quarter. The company expects non-GAAP operating margin of 21% and non-GAAP diluted net income of $0.18 to $0.19 a share, and said it expects GAAP profitability in the quarter.
For full fiscal 2027, Samsara expects revenue of $2.043 billion to $2.047 billion, 26% year-over-year growth, non-GAAP operating margin of 21%, non-GAAP diluted net income of $0.76 to $0.78 a share, and GAAP profitability. Constant-currency impact to revenue guidance is $2 million for the third quarter and $10 million for the full year.
The company remains a technology partner to operations across construction, transportation, wholesale and retail trade, field services, logistics, manufacturing, utilities and energy, government, healthcare and education, and food and beverage. Biswas said the company is innovating at an unprecedented pace.