WS Investor
04 Sep 2026, 09:08
Samsara Stock Surges 15% Premarket on Strong Q2 Growth and Improved Profitability
Samsara (NYSE: IOT) shares surged about 15% in premarket trading Friday after the connected-operations software company reported strong fiscal second-quarter results, highlighted by 30% revenue growth, accelerating large-customer business and improving profitability.
Revenue increased 30% year over year to $508.4 million, while annual recurring revenue (ARR) climbed 30% to $2.125 billion. Net new ARR reached $134.1 million, up 28% from a year earlier.
Large Customers and AI Adoption Drive Momentum
Samsara's performance among large enterprise customers was particularly strong. Customers generating more than $1 million in ARR collectively contributed over $500 million, representing growth of more than 50% for the third consecutive quarter.
Management also highlighted rapidly increasing adoption of its artificial intelligence capabilities, saying usage of some of its newest AI features has risen more than fourfold over the past two months.
Profitability strengthened alongside growth. Non-GAAP operating income jumped to $106 million from $59.7 million, while operating margin expanded to 21% from 15%. Adjusted EPS increased to $0.20 from $0.12.
Samsara also posted GAAP EPS of $0.03, marking its fourth consecutive quarter of GAAP profitability. Free cash flow increased to $64.7 million from $44.2 million.
Samsara Raises Full-Year Outlook
The strong premarket reaction is also supported by the company's fiscal 2027 outlook. Samsara now expects full-year revenue of $2.043 billion to $2.047 billion, representing approximately 26% growth, with a 21% non-GAAP operating margin and adjusted EPS of $0.76 to $0.78.
For Q3, revenue is expected at $514 million to $516 million, representing 24% year-over-year growth.
The 15% premarket jump reflects a combination investors typically reward in high-growth software stocks: sustained 30% ARR growth, rapid expansion among large customers, rising AI adoption, widening operating margins and continued GAAP profitability.
Samsara (NYSE: IOT) shares surged about 15% in premarket trading Friday after the connected-operations software company reported strong fiscal second-quarter results, highlighted by 30% revenue growth, accelerating large-customer business and improving profitability.
Revenue increased 30% year over year to $508.4 million, while annual recurring revenue (ARR) climbed 30% to $2.125 billion. Net new ARR reached $134.1 million, up 28% from a year earlier.
Large Customers and AI Adoption Drive Momentum
Samsara's performance among large enterprise customers was particularly strong. Customers generating more than $1 million in ARR collectively contributed over $500 million, representing growth of more than 50% for the third consecutive quarter.
Management also highlighted rapidly increasing adoption of its artificial intelligence capabilities, saying usage of some of its newest AI features has risen more than fourfold over the past two months.
Profitability strengthened alongside growth. Non-GAAP operating income jumped to $106 million from $59.7 million, while operating margin expanded to 21% from 15%. Adjusted EPS increased to $0.20 from $0.12.
Samsara also posted GAAP EPS of $0.03, marking its fourth consecutive quarter of GAAP profitability. Free cash flow increased to $64.7 million from $44.2 million.
Samsara Raises Full-Year Outlook
The strong premarket reaction is also supported by the company's fiscal 2027 outlook. Samsara now expects full-year revenue of $2.043 billion to $2.047 billion, representing approximately 26% growth, with a 21% non-GAAP operating margin and adjusted EPS of $0.76 to $0.78.
For Q3, revenue is expected at $514 million to $516 million, representing 24% year-over-year growth.
The 15% premarket jump reflects a combination investors typically reward in high-growth software stocks: sustained 30% ARR growth, rapid expansion among large customers, rising AI adoption, widening operating margins and continued GAAP profitability.
