Summary
Samsara reported third quarter fiscal 2026 revenue of $416.0 million, up 29.2% from the prior-year quarter. The period also delivered the company's first quarter of GAAP profitability. Net income was $7.8 million, compared with a net loss of $37.8 million a year earlier. Diluted earnings per share were $0.01, against a loss of $0.07. The operating loss narrowed to $1.7 million from $47.4 million.
Gross profit rose 29.7% to $319.0 million. Gross margin was 76.7%, up 0.3 percentage points from 76.4%. Operating margin improved to -0.4% from -14.7%. On a non-GAAP basis, operating income was $79.8 million and operating margin was 19%, up from 11%. The gap between the two sets of numbers is mostly stock-based compensation, which stays the largest reconciling item. Bottom-line profitability also leaned on interest and other income, because operations still produced a small loss.
Customer metrics held up. Ending ARR was $1.745 billion, up 29% year over year in actuals and in constant currency. Samsara finished the quarter with 2,990 customers above $100,000 in ARR, an increase of 219 and a quarterly record. Customers above $1 million in ARR totaled 164, an increase of 17 that tied a quarterly record. Management said its $100,000-plus ARR customers now represent more than $1 billion in ARR and grew 36% year over year. Remaining performance obligations were $3.38 billion, up 39.1% from $2.43 billion. Deferred revenue was $754.7 million, up 18.0%.
Cash generation improved. Operating cash flow was $63.7 million for the quarter, up 76.9% from $36.0 million. Capital expenditures were $7.9 million, up 64.6%. Adjusted free cash flow, a non-GAAP measure, was $55.8 million against $31.2 million. Through the first nine months, revenue was $1.17 billion, up 30.1%, and operating cash flow was $166.5 million, up 114.0%.
Guidance points to slower growth. For the fourth quarter of fiscal 2026, revenue is guided to $421 million to $423 million, or 22% year-over-year growth. For the full fiscal year 2026, revenue guidance is $1.595 billion to $1.597 billion, or 28% growth. Non-GAAP operating margin is guided to 16% for both the fourth quarter and the full year. Non-GAAP diluted net income per share is guided to $0.12 to $0.13 for the fourth quarter and $0.50 to $0.51 for the full year. Management expects a $3 million positive constant currency impact on fourth quarter revenue and no impact for the full year.
Costs keep climbing, though revenue growth outpaced the increases in operating expenses. The 10-Q attributes the rise in cost of revenue mainly to higher cloud, cellular, and connected device costs tied to sales volume. Samsara also adjusted its customer definition in the fiscal quarter ended May 3, 2025, grouping affiliated entities under a shared parent into one customer, and restated the prior period count. Risks listed in the filing include macroeconomic pressure, inflation, interest rates, foreign currency swings, supply chain disruption, tariffs and other trade policy changes, geopolitical tensions, and the possibility of a security breach. The company also cites its reliance on retaining customers and expanding their use of the platform, competition, and the length of its sales cycles. Management said existing cash and investments should cover working capital and capital expenditure needs for at least the next 12 months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $416.0M | $391.5M | +6.3% | $322.0M | +29.2% |
| Gross profit | $319.0M | $301.0M | +6.0% | $246.0M | +29.7% |
| Gross margin | 76.7% | 76.9% | -0.2 pp | 76.4% | +0.3 pp |
| Research & development | $86.2M | $85.6M | +0.7% | $77.0M | +12.0% |
| Sales & marketing | $168.4M | $174.1M | -3.3% | $150.1M | +12.2% |
| General & administrative | $66.1M | $67.9M | -2.6% | $62.7M | +5.5% |
| Total operating expenses | $320.7M | $327.6M | -2.1% | $293.3M | +9.3% |
| Operating income (loss) | -$1.7M | -$26.6M | +93.5% | -$47.4M | +96.4% |
| Operating margin | -0.4% | -6.8% | +6.4 pp | -14.7% | +14.3 pp |
| Net income (loss) | $7.8M | -$16.8M | +146.2% | -$37.8M | +120.5% |
| Net margin | 1.9% | -4.3% | +6.2 pp | -11.7% | +13.6 pp |
| Diluted EPS | $0.01 | -$0.03 | +$0.04 | -$0.07 | +$0.08 |
Risks
MD&A flags global macroeconomic trends including inflationary pressure, interest rate changes, supply chain and freight disruptions, fluctuating hardware component and fuel costs, and new tariff and trade policies that could reduce customer technology spending. The company states it is continuously monitoring these developments for direct and indirect effects on customers and suppliers.
Growth is increasingly dependent on large enterprise accounts, with customers over $100,000 in ARR rising to 2,990 as of November 1, 2025 from 2,292 as of November 2, 2024. The company also changed its customer definition in the quarter ended May 3, 2025 to group affiliated entities under a shared parent, and notes the count remains subject to adjustments for mergers, acquisitions, spin-offs, and segmentation.
The company reported an accumulated deficit of $1,641.2 million as of November 1, 2025 and states it may require additional capital resources to execute strategic initiatives, particularly if it generates negative cash flows in future quarters. It cautions that additional equity or debt financing may not be available on acceptable terms or at all.
Stock-based compensation expense of $236.1 million was the largest non-cash charge in the nine months ended November 1, 2025, and the company notes this expense is dependent on its stock price, which is beyond its control. Rising employee-related costs tied to headcount across research and development, sales and marketing, and general and administrative functions increase reliance on equity compensation to retain talent.
MD&A states that as global operations have expanded, exposure to fluctuations in foreign currencies has increased and is expected to continue, with interest income and other income, net for the nine months ended November 1, 2025 favorably impacted by $2.8 million in higher foreign currency gains. ARR for international contracts is translated at contract effective-date exchange rates, adding reporting variability.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Annual Recurring Revenue (ARR)
Free Cash Flow Margin
ARR adjusted for constant currency
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q3 FY2026 (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 1, 2026.