Summary
Samsara reported second-quarter fiscal 2027 revenue of $508.4 million, up 29.9% from the prior-year quarter. Revenue growth was 30% in the quarter and 29% in constant currency. The company crossed $2.1 billion in annual recurring revenue, with ending ARR of $2.125 billion, up 30% year over year. Net new ARR was $134.1 million, up 28% in both actual and constant currency. Customers with ARR over $100,000 rose to 3,605 from 2,771. Customers with ARR over $1 million generated more than $500 million of ARR, up over 50% for the third consecutive quarter. Management said adoption of some newer AI features increased more than 4x in the last two months. GAAP gross profit was $392.6 million, up 30.4%, and gross margin was 77.2%, up 0.3 percentage points. Operating income was $4.9 million, a swing to profit from an operating loss in the prior-year quarter, and operating margin was 1.0%, up 7.8 percentage points. Net income was $16.2 million, also a swing to profit, and diluted EPS was $0.03. This marked the fourth consecutive quarter of GAAP profitability.
Samsara generated operating cash flow of $73.5 million in the quarter, up 46.6%, and capital expenditures were $8.8 million, up 47.1%. Free cash flow, a non-GAAP measure, was $64.7 million, with a 13% free cash flow margin. Deferred revenue was $852.8 million, up 15.2%, and remaining performance obligations were $4.29 billion, up 35.4%. For the first six months of fiscal 2027, operating cash flow was $154.9 million, up 50.8%, and capital expenditures were $17.0 million, up 32.0%. Free cash flow for the six months was $137.9 million. Non-GAAP gross profit was $398.0 million and non-GAAP gross margin was 78%. Non-GAAP operating income was $106.0 million in the quarter, and non-GAAP operating margin was 21%. Non-GAAP net income per diluted share was $0.20.
On a year-to-date basis, revenue was $987.3 million, up 30.2%, and gross profit was $753.7 million, up 28.9%. Year-to-date gross margin was 76.3%, down 0.8 percentage points, and operating margin was 1.2%, up 9.1 percentage points. Year-to-date net income was $60.8 million, a swing to profit, and diluted EPS was $0.10. The company's large customers continue to drive momentum, and Samsara said it is innovating at an unprecedented pace. The quarter's GAAP operating income was small relative to non-GAAP operating income, which reflects the impact of stock-based compensation and other adjustments. Non-GAAP net income was $117.3 million. The company also reported a legal gain from an arbitration award in the first six months, which is excluded from non-GAAP results.
For the third quarter of fiscal 2027, Samsara guided non-GAAP operating margin to 21% and non-GAAP diluted net income per share to $0.18 to $0.19. For the full fiscal year 2027, the company guided non-GAAP operating margin to 21% and non-GAAP diluted net income per share to $0.76 to $0.78. Samsara expects GAAP profitability on a per-share basis for both the third quarter and the full year. Risks include macroeconomic pressure, foreign currency fluctuations, elevated hardware component costs, memory, storage and computing costs, tariffs, supply chain disruptions, security breaches, competition, and regulatory changes. The company also faces a high level of stock-based compensation, which weighs on GAAP profitability even as non-GAAP results look stronger.
Forecast
Risks
Risk Factors state that demand for memory and storage components from AI infrastructure investment has caused leading memory suppliers to reallocate capacity away from the DRAM and NAND flash memory used in the company's IoT devices, resulting in higher component prices, extended lead times, allocation-based ordering, and end-of-life notices. The company depends on a limited number of joint design manufacturers and suppliers, and in some cases a single supplier, and component shortages can delay the shipment of IoT devices and the recognition of subscription revenue.
A newly detailed risk is that employees or AI agents with access to internal platform controls and system tools could misuse them or take unintended or unauthorized actions, including accessing customer video footage, controlling large industrial assets or vehicle operations, escalating privileges, or circumventing sandboxing mechanisms. Such actions may occur autonomously, at scale or speed, and could cause significant harm to customers and the company's reputation.
AI development and deployment risks include flawed algorithms, uncertain intellectual property ownership, and new regulations such as the EU AI Act, which carries fines up to the greater of 35 million euros and 7% of global annual turnover. The filing also notes that token-based and consumption-based AI pricing could materially increase AI-related operating expenses and impact margins as AI use scales.
Evolving trade policies, including tariffs and other trade barriers, plus increased trade enforcement, may increase production costs and disrupt supply chain logistics. The MD&A for the six months ended August 1, 2026 notes higher connected device costs were offset by a one-time $12.4 million cash refund related to tariffs.
The company relies on third-party AI technologies and models for essential financial and operational services, and those providers may change or discontinue models, impose usage restrictions or rate limits, increase pricing, or face capacity constraints. R&D expense increased 20% for the three months ended August 1, 2026 compared with the prior-year quarter, partly due to a $6.2 million increase in platform costs driven by investments in AI tooling and related development infrastructure.
The MD&A highlights global macroeconomic trends that may affect customer spending, including inflationary pressure, elevated hardware component costs, memory, storage and computing costs, interest rate changes, and delayed or reduced spending on technology. These conditions may pressure the company's results of operations and its customers' businesses.
In the second quarter of fiscal year 2027 the company updated its brand identity, including changes to its logo, typeface, and color palette. The filing states this has required and may require further expenditures, may not achieve its intended benefits, and could result in customer confusion or otherwise adversely affect brand recognition or reputation.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Free Cash Flow Margin
Free Cash Flow
ARR
Non-GAAP Operating Income
Net New ARR
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q2 FY2027 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.