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Samsara Inc. (IOT)·Q2 2026 Earnings Summary

Executive Summary

  • Samsara delivered a strong Q2 FY2026: revenue $391.5M (+30% YoY), ARR $1.640B (+30% YoY), and non-GAAP operating margin 15%. Non-GAAP EPS was $0.12 vs GAAP EPS of $(0.03). Sequential free cash flow margin was 11% .
  • Results beat Wall Street consensus: revenue beat by ~$19.3M and EPS beat by ~$0.05; EBITDA came in below consensus as GAAP EBITDA was negative while estimates anticipated positive EBITDA.*
  • Guidance raised materially: FY26 revenue raised to $1.574–$1.578B (from $1.547–$1.555B), non-GAAP op margin to 15% (from 13%), and diluted non-GAAP EPS to $0.45–$0.47 (from $0.39–$0.41) .
  • Key catalysts: large-enterprise momentum (record 17 new $1M+ ARR customers; $1M+ cohort now >20% of ARR), improving booking linearity post Q1 tariff-related delays, and fast-emerging products (asset tags, maintenance, AI multicam, commercial navigation) driving 8% of net new ACV .

What Went Well and What Went Wrong

What Went Well

  • Large customer expansion and cohort strength: 17 new $1M+ ARR customers (quarterly record); $1M+ cohort now contributes >20% of ARR; ~$1B ARR from $100K+ customers (59% mix), +35% YoY .
  • Durable growth and operating leverage: non-GAAP operating margin rose to 15%, non-GAAP gross margin at 78%, and adjusted FCF margin 11% (+7 pts YoY) .
  • Fast product innovation and AI momentum: strong initial traction from new AI-enabled products; 8% of net new ACV from products launched in the past year; management emphasized proprietary data scale enabling AI insights .

What Went Wrong

  • EBITDA below consensus: GAAP EBITDA was negative, missing the consensus expectation for positive EBITDA.*
  • Tariff/macro-related deal timing noise: Q1 saw elongated sales cycles after “Liberation Day,” with larger deals slipping into Q2; while these closed in Q2, management cautioned larger deals have inherently longer, variable cycles .
  • Continued high stock-based compensation impacts GAAP results: GAAP net loss $(16.8)M and GAAP EPS $(0.03); non-GAAP excludes significant SBC and related items, per reconciliations .

Financial Results

Actuals vs Prior Periods and vs Estimates

MetricQ4 FY2025Q1 FY2026Q2 FY2026
Revenue ($USD Millions)$346.3 $366.9 $391.5
GAAP Gross Margin (%)77% 77% 77%
Non-GAAP Gross Margin (%)78% 79% 78%
Non-GAAP Operating Margin (%)16% 14% 15%
GAAP EPS ($)$(0.02) $(0.04) $(0.03)
Non-GAAP EPS ($)$0.11 $0.11 $0.12
Consensus vs ActualQ4 FY2025Q1 FY2026Q2 FY2026
Revenue Consensus Mean ($USD Millions)$335.3*$351.4*$372.2*
Revenue Actual ($USD Millions)$346.3 $366.9 $391.5
Primary EPS Consensus Mean ($)$0.0706*$0.0574*$0.0725*
Primary EPS Actual ($)$0.11 $0.11 $0.12
EBITDA Consensus Mean ($USD Millions)$37.3*$31.5*$40.3*
EBITDA Actual ($USD Millions)$(12.34)† $(31.11)† $(24.52)†

Notes: *Values retrieved from S&P Global. †Derived from GAAP income statement presentation (operating loss plus D&A and other appropriate adjustments as reflected in reported statements).

KPIs

KPIQ4 FY2025Q1 FY2026Q2 FY2026
Ending ARR ($USD Billions)$1.458 $1.535 $1.640
Customers with ARR >$100K (count)2,506 2,638 2,771
$100K+ ARR Mix of Total ARR (%)55% 58% 59%
$1M+ ARR Customers (count)118 —147
$1M+ ARR Cohort Share of ARR——>20%
Net New ARR ($USD Millions)$109 —$105
Adjusted Free Cash Flow ($USD Millions)$48.5 $45.7 $44.2
Adjusted FCF Margin (%)14% 12% 11%
Net Cash Provided by Operating Activities ($USD Millions)$53.9 $52.6 $50.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)Q3 FY2026—$398–$400 New
Total Revenue ($USD Millions)FY2026$1,547–$1,555 $1,574–$1,578 Raised
Non-GAAP Operating Margin (%)FY202613% 15% Raised
Non-GAAP Diluted EPS ($)FY2026$0.39–$0.41 $0.45–$0.47 Raised
Total Revenue ($USD Millions)Implied Q4 FY2026—$418–$420 New
Revenue Growth CC Impact ($USD Millions)Q3/FY2026Q2 had ~$1M headwind; FY ~$2M headwind Q3 +$1M, Q4 +$3M, FY $0M Updated mix

Earnings Call Themes & Trends

TopicQ4 FY2025 (Prior-2)Q1 FY2026 (Prior-1)Q2 FY2026 (Current)Trend
AI/technology initiativesEmphasis on proprietary data asset; AI to transform safety/maintenance; >14T data points Deeper AI use in safety/maintenance; OEM integrations expanding; new features and training Record new AI products (maintenance, AI multicam, navigation, routing); strong early traction (8% net new ACV) Accelerating
Tariffs/macroGuidance philosophy conservative; macro uncertainty acknowledged Q1 elongated cycles post “Liberation Day”; record pipeline; steady win rates Slipped larger deals all closed in Q2; no further tariff impact in Q2 Stabilizing
Product performance/emerging productsAsset tags growing; non-vehicle products rising share Asset tags strong; equipment monitoring accelerating; multi-product land/expand Largest-ever asset tags deal; broad contributions across new products Broadening
Regional trendsMexico/UK acceleration; lighthouse customers Europe net new ACV at highest mix; international 18% net new ACV Europe accelerated to highest level in last 4 quarters Improving
Public sectorStrongest YoY growth led by Miami-Dade State/local wins (SC, Houston, major county); vertical sales motion Continued strength; security/feature fit highlighted Sustained
OEM/pre-install programsOEM partnership expansion narrative OEM integrations: Hyundai Translead, Stellantis, Rivian Pre-Delivery Installation program launched (Daimler Truck, Fontaine) Formalized program
Competitive/pricingPlatform differentiation vs point solutions; non-vehicle greenfield Platform approach; non-vehicle adoption rising Competitors discount; platform/integration quality as differentiator Platform advantage
R&D/hiringHeadcount balanced growth; go-to-market and engineering focus Adding capacity; productivity healthy Continued adds; large-customer support investments Ongoing

Management Commentary

  • “Samsara had another strong quarter of durable and efficient growth, ending Q2 with $1.6 billion in ARR, a 30% increase year-over-year.” — Sanjit Biswas, CEO .
  • “We added 17 customers with more than $1 million in ARR, a quarterly record... $1 million plus ARR customers contributed more than 20% of total ARR.” — Dominic Phillips, CFO .
  • “All of the impacted larger transactions closed in Q2... and we didn't experience further tariff-related impact in the quarter.” — Dominic Phillips .
  • “We launched new products including asset maintenance… commercial navigation… route planning… AI multicam… and worker safety.” — Sanjit Biswas .
  • “8% of net new ACV in Q2 came from our new products launched in the past year… asset tags, connected workflows, connected training, asset maintenance, AI multicam, and commercial navigation.” — Dominic Phillips .

Q&A Highlights

  • Tariff impacts and deal timing: Q1 macro/tariff uncertainty elongated cycles; Q2 saw closure of slipped large deals and no further tariff impact .
  • AI monetization and product cadence: AI enhances core experience and enables new products; early design partners scaling deployments; monetization to evolve as products ramp .
  • Large customer motion: Dedicated teams, enterprise-grade security/integrations; record 17 $1M+ ARR additions; variability acknowledged in large deal timing .
  • Asset tags economics: Replacing “nothing” in many cases; ROI from loss/theft reduction and worker efficiency; largest deal at 15,000 tags in Q2 .
  • Public sector and key verticals: Efficiency and safety ROI driving adoption; construction remained top net new ACV mix; Europe accelerating .

Estimates Context

  • Revenue and EPS beat: Q2 revenue $391.5M vs $372.2M consensus; EPS $0.12 vs $0.0725 consensus.*
  • Consecutive beats: Q1 revenue $366.9M vs $351.4M; EPS $0.11 vs $0.0574.* Q4 revenue $346.3M vs $335.3M; EPS $0.11 vs $0.0706.*
  • EBITDA miss: Consensus expected positive EBITDA across Q4–Q2, but GAAP EBITDA was negative each quarter, reflecting GAAP loss from operations and SBC; non-GAAP operating margins expanded materially .
  • Implications: Street likely to revise FY26 up following revenue and EPS beats and the raised FY26 guide (revenue, margin, EPS) .
    Note: *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strong beat-and-raise quarter: Revenue and EPS beats coupled with higher FY26 revenue, margin, and EPS guidance signal durable growth with improving efficiency .
  • Large-enterprise momentum is accelerating: Record $1M+ ARR additions and >20% ARR contribution from the cohort suggest multi-year expansion runway; $100K+ customers grew ARR to ~$1B (59% mix) .
  • Emerging products are becoming meaningful contributors: 8% of net new ACV from new launches; asset tags, maintenance, AI multicam, and navigation broaden TAM and increase attach .
  • Watch EBITDA vs Street framing: Despite strong non-GAAP operating margins, GAAP EBITDA was negative; expect continued reliance on non-GAAP metrics and FCF as profitability signals .
  • Macro/tariff watch but stabilizing: Q1 timing headwinds cleared; Q2 saw no further tariff impact; larger deal variability remains a known trade-off in enterprise motion .
  • Secular tailwinds: AI infrastructure buildout, digitization in construction/public sector, and OEM pre-install program (Daimler/Fontaine) reduce friction and can drive adoption .
  • Near-term trading lens: Beat-and-raise + large customer cohort strength and emerging product traction are positive narrative drivers; monitor next-quarter (Q3) delivery vs new guidance ($398–$400M, EPS $0.11–$0.12) .

Citations:

  • Q2 FY2026 8-K and press release: revenue, margins, EPS, ARR, KPIs, guidance .
  • Earnings call transcript Q2 FY2026: large deal closures, cohort metrics, product traction, macro commentary .
  • Prior quarters Q1 FY2026 8-K: revenue, margins, EPS, guidance .
  • Prior quarter Q4 FY2025 8-K and call: revenue, margins, ARR, cohort, FCF .
  • Other Q2-relevant press release: Pre-Delivery Installation program (Daimler Truck, Fontaine) .