Samsara Inc. Q2 FY2026 earnings

Samsara reported $391.48 million of revenue in the second quarter of fiscal 2026, up 30.4% from $300.20 million in the prior-year quarter. Year-to-date revenue reached $758.36 million, up 30.5%. The company ended the period with $1.640 billion in annual recurring revenue, a 30% increase, and 2,771 customers spending more than $100,000 in ARR, up from 2,120 a year ago. Those large customers generated roughly $1 billion of ARR, and accounts above $1 million in ARR contributed more than 20% of total ARR. Management tied the demand to large, complex operations adopting the Connected Operations Platform.

Gross profit rose 32.7% to $300.98 million, and gross margin climbed to 76.9% from 75.6%. The company credited operational efficiencies in connected device costs and direct labor. Operating loss narrowed to $26.62 million from $58.19 million, and operating margin improved to negative 6.8% from negative 19.4%. Net loss narrowed to $16.80 million from $49.61 million, and diluted loss per share improved to $0.03 from $0.09. On a non-GAAP basis, operating income was $59.7 million at a 15% margin, versus $17.6 million at 6% a year earlier. The gap between GAAP and non-GAAP results stays wide, driven largely by stock-based compensation expense.

Cash generation improved sharply. Operating cash flow was $50.16 million, up 176.9% from $18.12 million. Year to date it reached $102.77 million, up 145.9%. Capital expenditures were $5.97 million, up 19.6%. Adjusted free cash flow, a non-GAAP measure, was $44.2 million versus $13.1 million. Deferred revenue stood at $740.51 million, up 18.9%, and remaining performance obligations were $3.17 billion, up 38.0%. That backlog points to a healthy pipeline of contracted work.

Samsara changed its customer definition in the fiscal quarter ended May 3, 2025, grouping affiliated entities under a shared parent into a single customer. Prior-period counts were adjusted to match. The company defines ARR as the annualized value of subscription contracts that have commenced revenue recognition, and it cautions that ARR is not a forecast and may not be comparable to similar measures at other companies.

For the third quarter of fiscal 2026, Samsara guided to a non-GAAP operating margin of 15%. For the fourth quarter, it expects a non-GAAP operating margin of 15.5%. For the full fiscal year 2026, the company guided to a 15% non-GAAP operating margin and non-GAAP diluted net income per share of $0.45 to $0.47. Revenue growth guidance for the third quarter, fourth quarter, and full year implies a deceleration from the current pace. The company noted a positive constant currency impact to its revenue guidance. It does not reconcile its non-GAAP guidance to GAAP on a forward-looking basis, citing uncertainty around items such as stock-based compensation expense.

The filing flags a long list of risks. Macroeconomic conditions, foreign currency swings, tariffs and trade policy, supply chain disruptions, and geopolitical tensions could pressure customer spending. The company also cites its ability to retain and expand customers, competition, rapid technological change, and the possibility of a security breach or other incident affecting customer data. Management says it may need additional capital if it generates negative cash flows in future quarters, and it maintains a full valuation allowance against its U.S. deferred tax assets.