SAMSARA Crosses $2.1 Billion ARR With 30% Growth in Q2 FY2027
The connected operations software maker posted $508.4 million in quarterly revenue, its fourth straight quarter of GAAP profitability, and guided Q3 revenue to about $515 million.
Samsara (IOT) reported second-quarter fiscal 2027 results on September 3, 2026, posting revenue of $508.4 million, up 30% year over year and 29% in constant currency, and ending annual recurring revenue of $2.125 billion, also up 30%. The company delivered GAAP earnings per share of $0.03, its fourth consecutive quarter of GAAP profitability, for the quarter ended August 1, 2026.
Net new ARR in the quarter came to $134.1 million, a 28% increase year over year in both actual and constant-currency terms. Customers generating more than $1 million in ARR now account for over $500 million of ARR, growing more than 50% year over year for the third consecutive quarter.
Profitability improved across the board. GAAP income from operations was $4.9 million, a $31.5 million swing from a loss of $26.6 million a year earlier, lifting GAAP operating margin from negative 7% to 1%. Non-GAAP operating income reached $106.0 million, a 21% margin versus 15% a year ago, while non-GAAP EPS rose to $0.20 from $0.12.
Gross margins held steady at 77% on a GAAP basis and 78% non-GAAP. Operating cash flow was $73.5 million and free cash flow $64.7 million, a 13% free cash flow margin, up from 11% in the prior-year quarter.
Chief executive and co-founder Sanjit Biswas said the company delivered another quarter of durable and efficient growth, adding that customer adoption of some of its newest AI features is up more than 4x in the last two months.
For the third quarter, Samsara guided to revenue of $514 million to $516 million, implying 24% growth, with a 21% non-GAAP operating margin and non-GAAP diluted EPS of $0.18 to $0.19. Full-year fiscal 2027 guidance calls for revenue of $2.043 billion to $2.047 billion, growth of 26%, and non-GAAP EPS of $0.76 to $0.78, with the company expecting to remain GAAP profitable in both periods.
Currency is a modest tailwind in the outlook, with a constant-currency impact of $2 million for Q3 and $10 million for the full year. The results were furnished in an 8-K filing alongside a shareholder letter posted to the company's investor relations site.
This is a factual summary of a public filing or press release, not investment advice. Verify all figures against the source before acting on them.
