Samsara Q2 Revenue Hits $508.4 Million on Fleet Tech Demand

Samsara reported second-quarter fiscal 2027 revenue of $508.4 million, a 30% increase from the same period last year. The San Francisco-based connected-operations technology provider announced the results on Thursday for the quarter ended August 1.

Annual recurring revenue reached $2.125 billion, also growing 30% year-over-year. Net new annual recurring revenue was $134.1 million, up 28%. "Samsara delivered another quarter of durable and efficient growth, crossing $2.1 billion in ARR with 30% year-over-year growth for the third consecutive quarter," said co-founder and CEO Sanjit Biswas.

Transportation and Large Customer Momentum

The company's transportation business showed strengthening momentum. According to Samsara, transportation accounted for its second-highest mix of net new annual contract value, behind only field services. Year-over-year growth in transportation accelerated sequentially for the third straight quarter.

Large customers are a primary engine for this growth. Samsara finished the quarter with 3,605 customers generating over $100,000 in ARR, adding a quarterly record of 242. These customers now represent 63% of the company's total ARR, up from 59% a year ago. Their ARR totaled $1.3 billion, a 38% increase.

The company also had 210 customers generating more than $1 million in ARR, adding a record 20 during the quarter. ARR from this elite group surpassed $500 million and grew more than 50% year-over-year for the third consecutive quarter.

Expansion in Mexico and Product Adoption

Mexico was another highlight, with year-over-year net new annual contract value growth accelerating for the second consecutive quarter. The country achieved its highest share of net new ACV in five quarters.

Security features are driving adoption among Mexican fleets. "Same thing down in Mexico. We've invested heavily in security. That's a very key use case for them," Biswas said, citing panic buttons and vehicle immobilizers. He highlighted Grupo Trayecto, Mexico's largest freight transportation company with over 4,000 trucks, as a key customer.

Customers are adopting more products simultaneously. Ninety-six percent of customers with over $100,000 in ARR use at least two Samsara products, while 72% use three or more. Emerging products, which include newer AI features, accounted for over 20% of net new ACV for the third straight quarter. Eight of the company's ten largest net new ACV transactions included an emerging product.

Financial Performance and Outlook

Samsara posted its fourth consecutive quarter of GAAP profitability. GAAP operating income was $4.9 million, a significant improvement from a $26.6 million loss a year earlier. The GAAP operating margin turned positive at 1%, compared to negative 7%.

Non-GAAP operating income rose to $106 million from $59.7 million, with the margin expanding six percentage points to 21%. Free cash flow reached $64.7 million, up from $44.2 million. GAAP earnings were 3 cents per share.

For the fiscal third quarter, Samsara forecasts revenue between $514 million and $516 million, representing roughly 24% year-over-year growth. The full-year fiscal 2027 revenue outlook is between $2.043 billion and $2.047 billion, an increase of approximately 26%. The company expects a non-GAAP operating margin of 21% and diluted non-GAAP earnings per share of 76 to 78 cents. Samsara anticipates remaining GAAP profitable for both Q3 and the full year.

Management noted that fiscal 2027 free cash flow margin is expected to be about 100 basis points below fiscal 2026 due to higher costs for IoT devices to meet demand, planned inventory builds, and raise supply chain costs in the second half.