#Samsara Tops Another Milestone
Samsara's fiscal second quarter looked like the letter the company wanted investors to read. Revenue reached $508.4M for the quarter ended August 1, 2026, up 30% from a year earlier and about 5% above the company's own guidance midpoint. Annual recurring revenue crossed $2.1B, also up 30%, marking the third straight quarter Samsara has held that growth rate even as the business gets much larger. Management raised its full year revenue outlook 2% to $2.043B-$2.047B, signaling it sees no near term let up in demand from the fleets, warehouses, and construction sites that run on its sensors and software.
#Margins Are Finally Catching Up To The Growth
The more interesting story sits below the revenue line. Non-GAAP operating margin hit 21%, up from 15% a year ago, a jump that pushed free cash flow to $64.7M, or 13% of revenue, versus 11% a year earlier. Samsara posted GAAP earnings per share of $0.03, its fourth consecutive profitable quarter under GAAP rules. For a company that lost money every quarter since going public in 2021, that streak matters as much to the stock as the top line does.
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#The Biggest Customers Keep Buying More
Growth is increasingly coming from Samsara's largest accounts. Customers paying over $100,000 a year in ARR now generate $1.331B of the total, up 38% year over year, even as their ranks grew to 3,605. Customers paying over $1M in ARR crossed $500M combined, up more than 50% for a third straight quarter. Nearly three quarters of $100K-plus customers, 72%, now buy three or more Samsara products, and eight of the ten largest new deals last quarter included at least three products.
That cross-selling, paired with what CEO Sanjit Biswas called a fourfold jump in adoption of Samsara's newest AI safety and maintenance tools over the past two months, is the evidence management points to for why the platform keeps compounding rather than simply adding logos.
#Growth Is Set To Slow From Here
The tension for investors is timing. Samsara's own guidance implies growth decelerating from 30% in Q2 to 24% in Q3 and roughly 22% by the fourth quarter, a normal pattern once a company scales past $2B in ARR, but a real deceleration analysts will be watching closely against the margin story.
Stock-based compensation expense was $96.4M for the quarter, while total stock-based compensation-related charges were $101.1M. The gap between GAAP and non-GAAP profitability remains significant, however, as Samsara’s non-GAAP results exclude stock-based compensation-related charges. The bull case is a durable, high-margin platform business still growing 20-plus percent a year. The question the next few quarters need to answer is whether Samsara can keep expanding margins once the easy growth comps run out.
#About Samsara
Samsara is the maker of the Connected Operations Platform, a cloud software system that connects sensors, cameras, and hardware devices installed on vehicles, equipment, and job sites to give companies real time visibility into their physical operations. Its core products include AI dash cams and vehicle gateways that monitor driver safety, asset tags and gateways that track equipment location and condition, and software tools for routing, maintenance, and compliance. The company serves industries built around physical assets, including trucking and logistics, construction, utilities, field services, and the public sector, with customers like Sonepar, APi Group, and other large fleet and equipment operators. Samsara trades on the NYSE under the ticker IOT and reported roughly $2.1B in annual recurring revenue as of its fiscal second quarter of 2027.