Samsara Inc. (NYSE: IOT), a provider of connected operations cloud technology, delivered strong fiscal second-quarter financial results Thursday evening, sending the stock up 14.4% on Friday to approximately $44.33. Shares had already gained 5.3% on Thursday, closing at $38.75 ahead of the earnings announcement. Samsara's platform serves businesses with physical operations — such as trucking fleets, construction, field services, and logistics — combining telematics hardware with cloud software for safety, maintenance, fuel, and workflow management, a market where it competes with established telematics providers like Geotab and Motive as well as broader enterprise software vendors.

Second-Quarter Results

Second-quarter revenue totaled $508.4 million, representing 30% year-over-year growth and well above the analyst consensus estimate of $483 million. Adjusted earnings per share came in at 20 cents, surpassing Wall Street's projection of 16 cents.

The quarter marked the company's fourth consecutive period of GAAP profitability, a notable milestone for an organization that faced cash flow challenges in recent years. Sustained GAAP profitability is a relatively uncommon achievement among high-growth software stocks, and investors have increasingly rewarded such transitions as rising interest rates shifted market attention toward durable unit economics.

Annual recurring revenue grew 30% to $2.125 billion, while net new ARR totaled $134 million, up 28%.

SAMSARA $IOT Q2'27 EARNINGS HIGHLIGHTS

Revenue: $508.4M (Est. $483M); +30% YoY
Adj. EPS: $0.20 (Est. $0.16); +67% YoY
ARR: $2.1B; +30% YoY
Net New ARR: $134.1M; +28% YoY

FY27 Guide: Revenue: $2.04B-$2.05B (Est. $2.01B)
Adj. EPS: $0.76-$0.78 (Est. …) pic.twitter.com/NGEUh1WPNz — Wall St Engine (@wallstengine) September 3, 2026

Enterprise Customer Growth

The company added a record-breaking 242 new customers contributing more than $100,000 in ARR during the quarter, along with 20 customers generating over $1 million in ARR.

Revenue from customers exceeding the $1 million threshold surpassed $500 million, a metric that has maintained over 50% year-over-year growth for three consecutive quarters.

Within the customer segment generating more than $100,000 in ARR, 96% use at least two Samsara solutions, while 72% leverage three or more products. The company reports that enterprise customers are moving from isolated implementations to comprehensive deployments spanning multiple departments and operational functions. This land-and-expand dynamic — starting with a single use case like vehicle tracking and broadening into safety, maintenance, and dispatch — is a key driver of net revenue retention for subscription software businesses.

"What begins with one use case often grows into the platform they rely on across assets, teams, and workflows," said Amit Vyas, Samsara's chief revenue officer.

Over the past year, customers digitized 340 million workflows and recorded 105 billion miles using Samsara. The platform also gathered more than 30 trillion data points, representing over 40% growth compared with the previous year.

Newer product offerings accounted for more than 20% of net new annual contract value for the third consecutive quarter.

Expanded AI Capabilities

Samsara introduced multiple AI-powered solutions during the quarter, including a Bluetooth tracking label, an AI-driven shipment center, and intelligent agents designed for safety management, maintenance scheduling, and dispatch operations. Additional camera-based innovations include rear collision detection, blind-spot monitoring, and comprehensive 360-degree vehicle visualization. The launches align with a broader industry push to apply AI agents and computer vision to physical-operations data, an area where proprietary real-world datasets are seen as a differentiating asset.

Customer adoption of select AI features increased more than fourfold during the past two months. The company emphasized that its extensive data collection capabilities provide enhanced contextual intelligence for its AI systems, resulting in superior performance outcomes.

Raised Guidance and Analyst Response

Looking ahead, management raised its full-year revenue forecast to $2.043 billion-$2.047 billion, up from the prior range of $2.005 billion-$2.013 billion. The adjusted EPS outlook was also increased to 76-78 cents from the previous 70-72 cents range.

Wall Street rates IOT as a Strong Buy, based on 12 Buy and four Hold ratings over the past three months. The consensus price target stands at $52.73, suggesting approximately 36% potential upside from current levels. Multiple analysts raised their targets in response to the quarterly results.

IOT stock has advanced 9.31% year to date but remains down 7.94% over the trailing 12-month period. Going forward, investors will be watching whether the pace of large-customer additions and AI feature adoption can sustain revenue growth near 30% as the company laps tougher comparisons, alongside continued progress on GAAP profitability.