Samsara reported fiscal second-quarter 2027 revenue of $508.4 million, representing a 30% increase year over year, as the connected-operations technology company continued to gain traction with large customers and recorded accelerating growth in both transportation and Mexico.
The San Francisco-based company, listed on the NYSE under the ticker IOT, said Thursday that annual recurring revenue (ARR) reached $2.125 billion for the quarter ended Aug. 1, also rising 30% compared with the previous year. Net new ARR came in at $134.1 million, up 28% year over year.
“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,” co-founder and CEO Sanjit Biswas said during the company’s earnings call with analysts after the market closed.
According to Biswas, large customers remain a major force behind Samsara’s momentum. At the same time, adoption of several of the company’s newest artificial intelligence features has increased more than fourfold over the past two months.
Samsara’s Connected Operations platform brings together telematics, video-based safety technology, equipment monitoring, maintenance tools and other applications designed for trucking, logistics, construction, field services and other industries operating large physical fleets and assets.
Transportation delivered particularly strong momentum during the quarter. The sector represented Samsara’s second-largest source of net new annual contract value, behind field services, while year-over-year transportation growth accelerated sequentially for the third consecutive quarter.
The company also recorded stronger activity in the public sector, which posted its second-highest net new ACV mix on record.
Management believes there is still significant room for expansion in the trucking market. During the earnings call, Samsara executives estimated that approximately 50% of commercial vehicles in North America remain unconnected, while 85% do not have an AI-powered dash camera.
Mexico Emerges as Another Major Growth Engine
Mexico was another market where Samsara saw accelerating momentum.
The company said year-over-year net new annual contract value growth in Mexico accelerated for the second consecutive quarter, giving the country its largest share of net new ACV in five quarters.
Security appears to be playing an important role in the growing adoption of Samsara’s technology 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, highlighting features including panic buttons and vehicle immobilizers.
Biswas also pointed to Grupo Trayecto, one of Samsara’s major transportation customers in Mexico, as an example of the company’s expanding reputation among large and complex operators.
Based in Monterrey, Mexico, Trayecto is the country’s largest freight transportation company, operating more than 4,000 trucks, 10,000 trailers and 4,000 drivers.
Large Customers Continue to Power Samsara’s Expansion
A significant share of Samsara’s growth is being generated by large enterprises that are expanding their use of the company’s platform.
The company ended the quarter with 3,605 customers generating more than $100,000 in ARR, after adding a quarterly record of 242 customers in that category.
Together, those customers generated $1.3 billion in ARR, representing 38% year-over-year growth. They now account for 63% of Samsara’s total ARR, compared with 59% one year earlier.
Samsara also finished the quarter with 210 customers generating more than $1 million in ARR, adding a record 20 customers during the period.
ARR generated by those customers exceeded $500 million and grew by more than 50% year over year for the third consecutive quarter.
The company is also seeing customers adopt a broader range of its technologies simultaneously. According to Samsara, 96% of customers generating more than $100,000 in ARR use at least two Samsara products, while 72% use three or more products.
Emerging products continued to make an increasingly important contribution to growth, accounting for more than 20% of net new ACV for the third consecutive quarter.
Notably, eight of Samsara’s 10 largest net new ACV transactions included an emerging product.
Samsara Records Fourth Consecutive Profitable Quarter
Samsara also continued to improve its profitability during the fiscal second quarter.
The company reported GAAP operating income of $4.9 million, compared with an operating loss of $26.6 million a year earlier. Its GAAP operating margin improved to 1%, up from negative 7% in the previous year.
Non-GAAP operating income increased to $106 million, compared with $59.7 million a year earlier, while the company’s non-GAAP operating margin expanded by six percentage points to 21%.
Free cash flow reached $64.7 million, compared with $44.2 million during the same period last year, while GAAP earnings came in at 3 cents per share.
The results marked Samsara’s fourth consecutive quarter of GAAP profitability.
The company expects its fiscal 2027 free cash flow margin to be approximately 100 basis points lower than in fiscal 2026, largely because it needs additional IoT devices to meet demand, plans to build more inventory and expects elevated supply chain costs during the second half of the year.
Samsara Q2 FY2027 Financial Results
| Metric | Q2 FY2027 | Q2 FY2026 | YoY change |
|---|---|---|---|
| Total revenue | $508.4M | $391.5M | +30% |
| Annual recurring revenue (ARR) | $2.125B | $1.640B | +30% |
| Adjusted gross profit | $398.0M | $305.7M | +$92.3M / +30% |
| Adjusted gross margin | 78% | 78% | Flat |
| Adjusted EPS | $0.20 | $0.12 | +$0.08 / +67% |
Adjusted figures are non-GAAP. Dollar amounts are rounded. Samsara reported $397.998 million in non-GAAP gross profit, which rounds to $398 million.
Outlook Remains Positive for Fiscal 2027
Looking ahead, Samsara forecast third-quarter fiscal 2027 revenue between $514 million and $516 million, representing approximately 24% year-over-year growth.
For the full fiscal year 2027, the company expects revenue of between $2.043 billion and $2.047 billion, an increase of approximately 26%.
Samsara is also forecasting a 21% non-GAAP operating margin and diluted non-GAAP earnings of between 76 cents and 78 cents per share.
The company expects to remain GAAP profitable in both the third quarter and throughout the full fiscal year.
Why it matters: Samsara’s accelerating transportation business and rapid expansion in Mexico underline the continued strength of demand for connected fleet technology. At the same time, growing adoption of artificial intelligence, maintenance, safety and asset-tracking products is giving the company more opportunities to generate revenue from every vehicle and customer while deepening its presence across the logistics and transportation ecosystem.
