Samsara reported second-quarter fiscal 2027 revenue of $508.4 million, up 30% year over year, as the connected-operations technology provider continued expanding among large customers and saw accelerating growth in transportation and Mexico.
San Francisco-based Samsara (NYSE: IOT) said Thursday that annual recurring revenue reached $2.125 billion for the quarter ended Aug. 1, also increasing 30% from a year earlier. Net new ARR totaled $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,” co-founder and CEO Sanjit Biswas said during an earnings call with analysts after the market closed.
Biswas said large customers continue to drive the company’s momentum, while adoption of some of Samsara’s latest artificial intelligence features has increased more than fourfold during the past two months.
Samsara’s Connected Operations platform combines telematics, video-based safety, equipment monitoring, maintenance and other applications aimed at trucking, logistics, construction, field services and other industries with large physical operations.
The company’s transportation business showed strengthening momentum during the quarter. Transportation accounted for Samsara’s second-highest mix of net new annual contract value, behind field services, while year-over-year growth in transportation accelerated sequentially for the third consecutive quarter.
Public-sector business also strengthened, posting its second-highest net new ACV mix on record.
Management said the opportunity in trucking remains substantial. During the earnings call, Samsara executives estimated that about 50% of commercial vehicles in North America remain unconnected, while 85% do not have an AI dash camera.
Mexico business accelerates
Mexico was another area of accelerating growth. The company said year-over-year net new annual contract value growth in Mexico accelerated for the second consecutive quarter, giving the country its highest share of net new ACV in five quarters.
Security appears to be one factor driving 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 , pointing to features such as panic buttons and vehicle immobilizers.
Biswas also cited Grupo Trayecto, one of Samsara’s large transportation customers in Mexico, saying the company’s brand reputation is expanding as it works with large, complex operators.
Monterrey, Mexico-based Trayecto is the biggest freight transportation company in the country, with more than 4,000 trucks, 10,000 trailers and 4,000 drivers.
Large customers propel Samsara
Much of Samsara’s growth is coming from larger enterprises expanding their use of the company’s platform.
Samsara finished the quarter with 3,605 customers generating more than $100,000 in ARR, after adding a quarterly record 242. Those customers accounted for $1.3 billion in ARR, up 38% year over year, and now represent 63% of companywide ARR, compared with 59% a year earlier.
The company also ended the quarter with 210 customers generating more than $1 million in ARR, adding a record 20 during the period. ARR from those customers surpassed $500 million and grew more than 50% year over year for the third consecutive quarter.
Samsara said customers are also adopting more of its technology simultaneously. Ninety-six percent of customers generating more than $100,000 in ARR use at least two Samsara products, while 72% use three or more.
Emerging products accounted for more than 20% of net new ACV for the third consecutive quarter. Eight of the company’s 10 largest net new ACV transactions included an emerging product.
Samsara posts fourth straight profitable quarter
Samsara reported GAAP operating income of $4.9 million, compared with a $26.6 million operating loss a year earlier. Its GAAP operating margin improved to 1% from negative 7%.
Non-GAAP operating income rose to $106 million from $59.7 million, while its non-GAAP operating margin expanded six percentage points to 21%.
Free cash flow reached $64.7 million, compared with $44.2 million a year earlier, and GAAP earnings were 3 cents per share. The result marked Samsara’s fourth consecutive quarter of GAAP profitability.
Samsara now expects its fiscal 2027 free cash flow margin to be about 100 basis points below fiscal 2026 because the company needs more IoT devices to support demand, plans to build additional inventory and expects elevated supply chain costs during the second half of the year.
For the fiscal third quarter, Samsara forecast revenue of $514 million to $516 million, representing about 24% year-over-year growth.
The company expects full-year fiscal 2027 revenue between $2.043 billion and $2.047 billion, up approximately 26%, along with a 21% non-GAAP operating margin and diluted non-GAAP earnings of 76 cents to 78 cents per share. Samsara expects to remain GAAP profitable for both Q3 and the full fiscal year.
Samsara Q2 FY2027 financial results
MetricQ2 FY2027Q2 FY2026YoY changeTotal 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 margin78%78%FlatAdjusted 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.
Why it matters: Samsara’s accelerating transportation and Mexico businesses show that demand for connected fleet technology remains strong, while growing adoption of AI, maintenance, safety and asset-tracking products is giving the company more ways to generate revenue from each vehicle and customer.
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