Samsara Q2 2027 earnings: revenue and profit beat estimates as big customers drive growth
Samsara's Q2 2027 revenue and profit beat estimates, fueled by strong growth in large customer contracts, and the company raised its full-year outlook.
| Q2 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $0.20 | $0.16 | +23.9% |
| Revenue | $508.4M | $488.1M | +4.2% |
Key takeaways
- Samsara topped Wall Street’s expectations on both the top and bottom lines: revenue grew 30% from a year earlier and adjusted profit per share came in well above what analysts had penciled in, extending a beat-and-raise pattern that pushed shares up roughly 16% after hours.
- The company also posted its fourth straight quarter of GAAP (by-the-book accounting) profitability, a milestone for a business that has historically run at a loss while investing heavily in growth.
- Growth was driven by Samsara’s core subscription business: annual recurring revenue (ARR, the yearly value of active subscriptions) crossed $2.1 billion, up 30% year over year, with a record number of new customers paying $100,000 or more annually and 20 new customers paying $1 million or more.
- Large customers are increasingly the growth engine — those spending over $1 million a year with Samsara collectively generated more than $500 million in ARR, up over 50% from a year ago for the third quarter in a row.
- The TTM (trailing twelve month) fundamentals show a company still in transition: gross margin is a healthy 76%, typical for software, but operating margin is roughly break-even, meaning day-to-day operations aren’t yet a reliable profit source even as headline earnings turn positive with the help of other items.
- Management raised guidance for both the current quarter and the full fiscal year, now projecting fiscal 2027 revenue of about $2.04-2.05 billion, roughly 26% annual growth, a sign leadership expects the momentum in large-customer deals to continue.
- Coverage attributed the strength to Samsara’s push into AI-powered fleet and industrial safety tools, which is helping it land bigger, higher-value contracts with large enterprise customers rather than relying only on adding smaller accounts.
Q2 2027 in context
| Metric | Aug 2026 | Aug 2025 | Change |
|---|---|---|---|
| Revenue | $508M | $391M | +29.9% |
| Net income | $16M | -$17M | +196.7% |
| Free cash flow | $65M | $44M | +46.5% |
| Diluted EPS | $0.03 | -$0.03 | +200.0% |
| Gross margin | 77.2% | 76.9% | +0.3 pts |
| Operating margin | 1.0% | -6.8% | +7.8 pts |
| Net margin | 3.2% | -4.3% | +7.5 pts |
Figures for the quarter ended Aug 2026 and the quarter ended Aug 2025, as reported to the SEC.
How the stock took it
Samsara Inc closed at $36.79 on Sep 2, 2026, the last session before the report, and at $40.20 on Sep 4, 2026, the first session after it — +9.3% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 76.3% | Trailing 12 months |
| Operating margin | -0.7% | Trailing 12 months |
| Net profit margin | 3.3% | Trailing 12 months |
| Pretax margin | 4.1% | Trailing 12 months |
| EPS | $0.10 | Trailing 12 months |
| Revenue growth (YoY) | 29.6% | Trailing 12 months |
| Return on equity | 4.2% | Trailing 12 months |
Sources: company report · earnings call · Investing.com