Financial Performance - Q2 FY26 ARR reached $1.64 billion, demonstrating a 30% year-over-year growth as reported and in constant currency[11] - Q2 FY26 Adjusted Free Cash Flow was $44 million, resulting in an 11% Adjusted Free Cash Flow Margin[11] - The company is projecting total revenue of $1.574 - $1.578 billion for FY26, representing a 26% year-over-year growth[48] - Non-GAAP operating margin is guided at 15% for Q3 FY26, 15.5% for Q4 FY26, and 15% for the full FY26[48] - Non-GAAP EPS is expected to be $0.11 - $0.12 for Q3 FY26, $0.11 - $0.12 for Q4 FY26, and $0.45 - $0.47 for the full FY26[48] Customer Growth and Expansion - The company has 2,771 customers with over $100K+ ARR, indicating a strong large customer base[11] - Over 20% of the company's ARR comes from customers with over $1M+ ARR[11] - The company added 1,000+ core customers for the 4th time in the last 5 quarters[41] Product and Platform Expansion - The company has digitized 300 million workflows[18] - The company boasts 350 partner integrations, with the largest customers averaging 6 integrations[29] - 8% of net new ACV is attributed to new products launched within the last year[43] Data and Usage - The company's connected operations platform has accumulated 20 trillion data points, showing a 50% year-over-year growth[18] - The platform has tracked 90 billion miles traveled[18]

[Executive Summary & Q2 FY2026 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%20FY2026%20Highlights) Samsara achieved strong Q2 FY2026 results, with significant ARR and revenue growth, improved profitability, and robust customer acquisition [Q2 FY2026 Financial Performance](index=1&type=section&id=Q2%20FY2026%20Financial%20Performance) Samsara reported strong financial results for Q2 FY2026, with significant year-over-year growth in key metrics such as Annual Recurring Revenue (ARR) and total revenue, alongside improved profitability on a non-GAAP basis - Samsara ended Q2 FY2026 with **$1.6 billion in ARR**, marking a **30% increase year-over-year**, driven by amplified demand for its Connected Operations Platform in an AI-driven economy[2](index=2&type=chunk) Q2 FY2026 Key Financial Highlights (YoY Change) | Metric | Q2 FY2026 | Q2 FY2025 | Y/Y Change | Y/Y Change (Constant Currency) | | :--------------------------------- | :-------- | :-------- | :--------- | :----------------------------- | | Annual Recurring Revenue (ARR) | $1,640.1M | $1,264.0M | 30% | 30% | | Total revenue | $391.5M | $300.2M | 30% | 31% | | GAAP gross profit | $301.0M | $226.8M | $74.2M | - | | GAAP gross margin | 77% | 76% | 1 pt | - | | Non-GAAP gross profit | $305.7M | $230.8M | $74.9M | - | | Non-GAAP gross margin | 78% | 77% | 1 pt | - | | GAAP operating loss | $(26.6)M | $(58.2)M | $31.6M | - | | GAAP operating margin | (7%) | (19%) | 13 pts | - | | Non-GAAP operating income | $59.7M | $17.6M | $42.1M | - | | Non-GAAP operating margin | 15% | 6% | 9 pts | - | | GAAP net loss per share, basic and diluted | $(0.03) | $(0.09) | $0.06 | - | | Non-GAAP net income per share, basic and diluted | $0.12 | $0.05 | $0.07 | - | | Net cash provided by operating activities | $50.2M | $18.1M | $32.1M | - | | Net cash provided by operating activities margin | 13% | 6% | 7 pts | - | | Adjusted free cash flow | $44.2M | $13.1M | $31.1M | - | | Adjusted free cash flow margin | 11% | 4% | 7 pts | - | [Key Operational Metrics](index=1&type=section&id=Key%20Operational%20Metrics) Samsara demonstrated strong customer acquisition and expansion, particularly among larger customers, contributing significantly to its Annual Recurring Revenue (ARR) growth - The number of customers with ARR over $100,000 increased to **2,771**, up from 2,120 a year ago, indicating strong growth in larger customer segments[4](index=4&type=chunk) - Customers with ARR over $100,000 generated approximately **$1 billion of ARR**, representing **35% year-over-year growth**[4](index=4&type=chunk) - Customers with ARR over $1,000,000 contributed **more than 20% of the total ARR**[4](index=4&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Samsara forecasts continued revenue growth and improved non-GAAP operating margins and diluted EPS for Q3 and full fiscal year 2026 [Q3 FY2026 and FY2026 Guidance](index=2&type=section&id=Q3%20FY2026%20and%20FY2026%20Guidance) Samsara provided optimistic financial guidance for Q3 FY2026 and the full fiscal year 2026, projecting continued revenue growth and improved non-GAAP operating margins and diluted net income per share Financial Outlook for Q3 FY2026, Implied Q4 FY2026, and FY2026 | Metric | Q3 FY2026 Outlook | Implied Q4 FY2026 Outlook | FY 2026 Outlook | | :--------------------------------- | :---------------- | :------------------------ | :-------------- | | Total revenue | $398M – $400M | $418M – $420M | $1.574B – $1.578B | | Year/Year revenue growth | 24% | 21% | 26% | | Year/Year revenue growth in constant currency | 23% – 24% | 20% | 26% | | Non-GAAP operating margin | 15% | 15.5% | 15% | | Non-GAAP net income per share, diluted | $0.11 – $0.12 | $0.11 – $0.12 | $0.45 – $0.47 | - Constant currency impact to revenue guidance is expected to be a **$1 million positive impact for Q3 FY26**, a **$3 million positive impact for Q4 FY26**, and a **$0 million positive impact for FY26**[6](index=6&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) Samsara's Connected Operations Platform improves safety, efficiency, and sustainability by connecting operations across diverse industries [About Samsara](index=2&type=section&id=About%20Samsara) Samsara is a pioneer of the Connected Operations Platform, an open platform designed to connect people, devices, and systems in complex operations to generate actionable insights and improve safety, efficiency, and sustainability across various industries - Samsara's Connected Operations Platform connects people, devices, and systems to provide actionable insights and improve operations[7](index=7&type=chunk) - The company serves tens of thousands of customers across North America and Europe in industries such as transportation, construction, logistics, manufacturing, and utilities[7](index=7&type=chunk) - Samsara's mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy[7](index=7&type=chunk) [Important Disclosures](index=2&type=section&id=Important%20Disclosures) This section details forward-looking statements, non-GAAP financial measures, and definitions for key operating metrics and financial terms [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines the nature of forward-looking statements within the press release, emphasizing that they are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, and the company does not undertake to update them - Forward-looking statements relate to future operating results, financial performance, market opportunity, industry trends, macroeconomic conditions, customer adoption, product development, and competitive position[8](index=8&type=chunk) - These statements are subject to risks and uncertainties, including customer retention, ability to attract new customers, future financial performance, global economic and geopolitical events, supply chain challenges, foreign currency fluctuations, and technological changes[11](index=11&type=chunk) - The company does not undertake any obligation to publicly update or revise any forward-looking statement, except as required by law[12](index=12&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Samsara utilizes non-GAAP financial measures to provide investors with additional insights into its operating results, aligning with management's perspective, while also acknowledging the inherent limitations of these measures compared to GAAP - Non-GAAP financial measures are presented to assist investors in evaluating Samsara's operating results through management's eyes and provide an additional tool for business evaluation[15](index=15&type=chunk) - These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for GAAP financial information, as other companies may calculate them differently[14](index=14&type=chunk) - Expenses excluded from non-GAAP performance measures include stock-based compensation expense-related charges (amortization of deferred stock-based compensation and employer taxes on employee equity transactions), lease modification, impairment, and related charges, and legal settlements[16](index=16&type=chunk)[17](index=17&type=chunk) [Operating Metrics and Non-GAAP Financial Measures Definitions](index=4&type=section&id=Operating%20Metrics%20and%20Non-GAAP%20Financial%20Measures%20Definitions) This section provides clear definitions for key operating metrics and non-GAAP financial measures used by Samsara, including ARR, constant currency adjustments, customer criteria, and various non-GAAP profit and cash flow metrics - Annual Recurring Revenue (ARR) is defined as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date[18](index=18&type=chunk) - Constant currency methodology assesses underlying business performance by excluding foreign currency rate fluctuations, converting current period results using comparative period exchange rates[19](index=19&type=chunk) - A 'customer' is an entity or affiliated group with ARR greater than **$1,000** at the end of a reporting period[20](index=20&type=chunk) - Non-GAAP Gross Profit, Operating Income (Loss), and Net Income (Loss) exclude stock-based compensation expense-related charges, lease modification/impairment charges, and legal settlements to provide a clearer view of ongoing operational performance[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - Free Cash Flow is net cash from operating activities minus purchases of property and equipment, while Adjusted Free Cash Flow further excludes non-recurring capital expenditures and legal settlements, both used to evaluate liquidity and funding ability[24](index=24&type=chunk)[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Samsara's condensed consolidated financial statements, highlighting growth and improved operational efficiency [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Samsara's balance sheet as of August 2, 2025, shows an increase in total assets and stockholders' equity compared to February 1, 2025, reflecting growth in cash, investments, and deferred revenue Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | As of August 2, 2025 | As of February 1, 2025 | | :--------------------------------- | :------------------- | :--------------------- | | Total current assets | $1,185,950 | $1,145,154 | | Total assets | $2,207,099 | $2,024,302 | | Total current liabilities | $791,586 | $761,346 | | Total liabilities | $992,326 | $955,106 | | Total stockholders' equity | $1,214,773 | $1,069,196 | - Cash and cash equivalents increased from **$227,576 thousand to $258,472 thousand**, and long-term investments grew from **$282,652 thousand to $386,266 thousand**[28](index=28&type=chunk) - Deferred revenue (current and non-current) increased from **$685,770 thousand to $740,512 thousand**, indicating strong future revenue recognition[28](index=28&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Samsara's income statement for Q2 FY2026 shows substantial revenue growth and improved operating loss and net loss compared to the prior year, reflecting increased gross profit and controlled operating expenses relative to revenue growth Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Revenue | $391,480 | $300,202 | $758,364 | $580,928 | | Gross profit | $300,979 | $226,837 | $584,694 | $438,938 | | Loss from operations | $(26,619) | $(58,194) | $(59,874) | $(124,191) | | Net loss | $(16,800) | $(49,610) | $(38,921) | $(105,899) | | Net loss per share, basic and diluted | $(0.03) | $(0.09) | $(0.07) | $(0.19) | - Revenue grew **30% year-over-year** for the three months ended August 2, 2025, reaching **$391,480 thousand**[31](index=31&type=chunk) - Loss from operations significantly narrowed from **$(58,194) thousand in Q2 FY2025 to $(26,619) thousand in Q2 FY2026**[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Samsara's cash flow statement indicates a substantial increase in net cash provided by operating activities for both the three and six months ended August 2, 2025, demonstrating improved operational efficiency and cash generation Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $50,161 | $18,117 | $102,773 | $41,787 | | Net cash used in investing activities | $(68,156) | $(36,289) | $(86,445) | $(33,238) | | Net cash provided by financing activities | $18,399 | $15,667 | $18,043 | $15,979 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $623 | $(2,965) | $35,715 | $23,965 | - Net cash provided by operating activities more than doubled year-over-year for the three months ended August 2, 2025, reaching **$50,161 thousand**[34](index=34&type=chunk) - Cash, cash equivalents, and restricted cash at the end of the period increased to **$281,509 thousand** from $178,703 thousand a year prior[34](index=34&type=chunk) [Reconciliation Between GAAP and Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20Between%20GAAP%20and%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP and non-GAAP financial measures for key metrics, detailing the impact of various adjustments [Revenue and Revenue Growth Reconciliation](index=9&type=section&id=Revenue%20and%20Revenue%20Growth%20Reconciliation) Samsara's revenue and revenue growth reconciliation highlights the impact of constant currency adjustments, showing a slightly higher growth rate when foreign exchange fluctuations are excluded Revenue and Revenue Growth Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP revenue | $391,480 | $300,202 | $758,364 | $580,928 | | Constant currency adjustment | $316 | — | $3,882 | — | | Revenue adjusted for constant currency | $391,796 | $300,202 | $762,246 | $580,928 | | GAAP revenue growth | 30% | 37% | 31% | 37% | | Revenue growth in constant currency | 31% | 37% | 31% | 37% | - For Q2 FY2026, GAAP revenue growth was **30%**, while revenue growth in constant currency was **31%**, indicating a minor positive impact from foreign currency rates[37](index=37&type=chunk) [Gross Profit and Gross Margin Reconciliation](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Reconciliation) The reconciliation shows that non-GAAP gross profit and margin are consistently higher than GAAP figures due to the exclusion of stock-based compensation expense-related charges, reflecting the company's core operational profitability Gross Profit and Gross Margin Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP gross profit | $300,979 | $226,837 | $584,694 | $438,938 | | Stock-based compensation expense-related charges | $4,713 | $3,939 | $9,074 | $7,705 | | Non-GAAP gross profit | $305,692 | $230,776 | $593,768 | $446,643 | | GAAP gross margin | 77% | 76% | 77% | 76% | | Non-GAAP gross margin | 78% | 77% | 78% | 77% | - Non-GAAP gross margin for Q2 FY2026 was **78%**, one percentage point higher than the GAAP gross margin of **77%**[37](index=37&type=chunk) [Operating Income (Loss) and Operating Margin Reconciliation](index=9&type=section&id=Operating%20Income%20(Loss)%20and%20Operating%20Margin%20Reconciliation) The reconciliation demonstrates a significant improvement in operating profitability on a non-GAAP basis, moving from a substantial GAAP operating loss to a positive non-GAAP operating income, primarily by excluding stock-based compensation Operating Income (Loss) and Operating Margin Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP loss from operations | $(26,619) | $(58,194) | $(59,874) | $(124,191) | | Stock-based compensation expense-related charges | $86,317 | $75,746 | $170,643 | $147,902 | | Non-GAAP operating income | $59,698 | $17,552 | $110,769 | $23,711 | | GAAP operating margin | (7%) | (19%) | (8%) | (21%) | | Non-GAAP operating margin | 15% | 6% | 15% | 4% | - Non-GAAP operating income for Q2 FY2026 was **$59,698 thousand**, a substantial increase from $17,552 thousand in Q2 FY2025, resulting in a non-GAAP operating margin of **15%** (up 9 percentage points YoY)[37](index=37&type=chunk) [Net Income (Loss) and Net Income (Loss) per Share Reconciliation](index=9&type=section&id=Net%20Income%20(Loss)%20and%20Net%20Income%20(Loss)%20per%20Share%20Reconciliation) The reconciliation highlights the significant impact of non-GAAP adjustments, particularly stock-based compensation, in transforming a GAAP net loss into a positive non-GAAP net income and diluted EPS, reflecting underlying operational profitability Net Income (Loss) Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP net loss | $(16,800) | $(49,610) | $(38,921) | $(105,899) | | Stock-based compensation expense-related charges | $86,317 | $75,746 | $170,643 | $147,902 | | Non-GAAP net income | $69,517 | $26,136 | $131,722 | $42,003 | Net Income (Loss) per Share Reconciliation | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | GAAP net loss per share, diluted | $(0.03) | $(0.09) | $(0.07) | $(0.19) | | Total impact on net loss per share, diluted, from non-GAAP adjustments | $0.15 | $0.14 | $0.30 | $0.26 | | Non-GAAP net income per share, diluted | $0.12 | $0.05 | $0.23 | $0.07 | - Non-GAAP net income per share, diluted, increased to **$0.12 in Q2 FY2026** from $0.05 in Q2 FY2025[40](index=40&type=chunk) [Free Cash Flow and Adjusted Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) Samsara's free cash flow and adjusted free cash flow significantly improved year-over-year, demonstrating enhanced liquidity and ability to fund future operations and strategic initiatives Free Cash Flow and Adjusted Free Cash Flow Reconciliation (in thousands) | Metric | Three Months Ended August 2, 2025 | Three Months Ended August 3, 2024 | Six Months Ended August 2, 2025 | Six Months Ended August 3, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $50,161 | $18,117 | $102,773 | $41,787 | | Purchases of property and equipment | $(5,969) | $(4,992) | $(12,889) | $(10,054) | | Free cash flow | $44,192 | $13,125 | $89,884 | $31,733 | | Adjusted free cash flow | $44,192 | $13,125 | $89,884 | $31,733 | | Net cash provided by operating activities margin | 13% | 6% | 14% | 7% | | Free cash flow margin | 11% | 4% | 12% | 5% | | Adjusted free cash flow margin | 11% | 4% | 12% | 5% | - Free cash flow for Q2 FY2026 was **$44,192 thousand**, a substantial increase from $13,125 thousand in Q2 FY2025, with free cash flow margin improving from **4% to 11%**[43](index=43&type=chunk) - Stock-based compensation expense-related charges totaled **$86,317 thousand** for the three months ended August 2, 2025, including amortization of capitalized software and employer taxes on employee equity transactions[43](index=43&type=chunk)

Key Takeaways Samsara projects Q2 EPS of $0.06-$0.07, with consensus at $0.07, up 40% year over year.Revenues are expected at $371M-$373M, in line with consensus, up about 24% from last year.AI-driven adoption, OEM deals, and ARR expansion are likely to support Samsara's performance.Samsara Inc. (IOT) is scheduled to report second-quarter fiscal 2026 results on Sept. 4.For the second quarter of fiscal 2026, management expects non-GAAP earnings per share between 6 cents and 7 cents. The consensus mark is peg ...

Core Insights - The article emphasizes the transformative potential of AGI (Artificial General Intelligence) over the next 20 years, likening its impact to that of the internet on society [2] - It discusses the current state of AI development, indicating that many companies are still in the preparatory phase, focusing on data readiness and organizational transformation [3][4] Group 1: AI Development and Company Insights - A subset of startups, often founded by former Palantir employees, is achieving profitability without heavy financing, highlighting a different approach to AI development [3] - Distyl.ai exemplifies the complexity of AI integration into business processes, requiring a systemic overhaul rather than mere tool replacement [4][5] - The article identifies three key dimensions for data preparation: Data Infrastructure, Knowledge Distillation, and Simulation, which are essential for effective AI deployment [5][6] Group 2: Market Performance and Trends - AGIX has shown strong performance, with a weekly increase of 1.99%, outperforming major indices like S&P 500 and QQQ [11][15] - The technology sector experienced net selling, with a notable focus on industrial and communication services, while AI-related stocks like Snowflake and MongoDB saw significant gains [12][14] - The article notes that the current investment environment is favoring companies that can effectively leverage AI capabilities, indicating a shift in market dynamics [15][16] Group 3: AI Infrastructure and Future Directions - Real-time data processing is becoming crucial, with companies like Confluent enhancing their offerings to support AI agents in monitoring and decision-making [7][8] - The integration of AI into enterprise systems requires a robust data governance framework, as highlighted by the collaboration between Snowflake and Confluent [8][9] - The article stresses the importance of decision transparency and traceability in AI applications, which are critical for enterprise-level adoption [9][10]

Company Performance - Samsara Inc. ended the recent trading session at $34.40, showing a -1.12% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.43% [1] - Over the past month, shares of Samsara Inc. have decreased by 10.77%, while the Computer and Technology sector gained 2.56% and the S&P 500 gained 2.65% [1] Upcoming Earnings - Samsara Inc. is set to disclose its earnings on September 4, 2025, with a forecasted EPS of $0.07, indicating a 40% increase from the same quarter last year [2] - The consensus estimate projects revenue of $372.32 million, reflecting a 24.02% rise from the equivalent quarter last year [2] Fiscal Year Projections - For the entire fiscal year, the Zacks Consensus Estimates project earnings of $0.41 per share and revenue of $1.55 billion, representing increases of +57.69% and +24.23% from the prior year, respectively [3] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for Samsara Inc. are important for investors, as positive revisions indicate optimism about the business outlook [3] - Empirical research shows that revisions in estimates correlate with impending stock price performance [4] Zacks Rank and Valuation - Samsara Inc. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining steady over the past month [5] - The company has a Forward P/E ratio of 85.11, which is a premium compared to the average Forward P/E of 30.83 for its industry [5] Industry Overview - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 71, placing it in the top 29% of all 250+ industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Insights - HERE Technologies has partnered with Samsara Inc. to integrate HERE's mapping and geolocation services into Samsara's Connected Operations® Platform, enhancing operational safety, efficiency, and sustainability [1][5]. Group 1: Partnership Overview - The collaboration aims to improve fleet operations by providing precise routing, smarter dispatch, and real-time visibility, ultimately reducing downtime and enhancing performance across various vehicle types [2][3]. - The partnership allows HERE to expand its mission of empowering vehicles with dynamic mapping and routing capabilities, while Samsara enhances its platform with advanced geospatial intelligence [3][4]. Group 2: Company Background - HERE Technologies has been a leader in mapping and location technology for 40 years, recognized for its comprehensive location platform that supports various industries, including autonomous driving and logistics [4]. - Samsara, a pioneer in the Connected Operations® Platform, serves tens of thousands of customers across North America and Europe, focusing on improving safety, efficiency, and sustainability in physical operations [5].

Company Performance - Samsara Inc. closed at $33.90, reflecting a +1.1% change from the previous day, outperforming the S&P 500's daily loss of 0.01% [1] - Over the last month, the company's shares have decreased by 14.55%, while the Computer and Technology sector gained 4.93% and the S&P 500 gained 3.47% [1] Upcoming Earnings - The company is set to release its earnings report on September 4, 2025, with an expected EPS of $0.07, indicating a 40% growth year-over-year [2] - Revenue is forecasted to be $372.32 million, representing a 24.02% increase compared to the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates predict full-year earnings of $0.41 per share and revenue of $1.55 billion, reflecting year-over-year changes of +57.69% and +24.23%, respectively [3] Analyst Estimates - Recent modifications to analyst estimates indicate positive sentiment towards the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings for investors [5] Zacks Rank and Valuation - Samsara Inc. currently holds a Zacks Rank of 3 (Hold), with the consensus EPS projection remaining unchanged over the past 30 days [6] - The company is trading at a Forward P/E ratio of 82.03, significantly higher than the industry average of 29.37 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [7] - Strong industry performance is indicated by the Zacks Industry Rank, where top-rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Samsara Inc. (IOT) experienced a decline of 1.06% in its stock price, closing at $39.24, which underperformed compared to the S&P 500's daily loss of 0.3% [1] - Over the past month, the company's shares decreased by 0.3%, while the Computer and Technology sector gained 4.85% and the S&P 500 increased by 3.64% [1] Earnings Forecast - Analysts predict that Samsara Inc. will report an EPS of $0.07, reflecting a 40% growth compared to the same quarter last year [2] - The consensus estimate for revenue is $372.32 million, which represents a 24.02% increase from the prior-year quarter [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $0.41 per share and revenue of $1.55 billion, indicating increases of 57.69% and 24.23% respectively from the previous year [3] - Recent changes in analyst estimates suggest a favorable outlook on the company's business health and profitability [3] Valuation Metrics - Samsara Inc. has a Forward P/E ratio of 97.03, significantly higher than the industry average of 29.27, indicating that the company is trading at a premium [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [6] Analyst Ratings - The Zacks Rank system, which evaluates estimate revisions, currently rates Samsara Inc. as 2 (Buy) [5] - The Zacks Rank has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5]

Core Viewpoint - Samsara is a rapidly growing IoT company focused on providing sensor and cloud-based software management for industrial operations, achieving significant annual recurring revenue (ARR) growth in just 10 years [1]. Business and Product Matrix - Samsara's offerings consist of hardware devices (cameras, sensors, gateways) and a software platform called Connected Operations Cloud, which integrates data from IoT devices and third-party resources [3]. - The software applications include video-based safety, vehicle telematics, employee applications, equipment monitoring, and on-site visualization, utilizing AI technology for enhanced safety and performance [4]. Financial Performance - For Q1 FY26, Samsara reported an ARR of $1.54 billion, a 31% year-over-year increase, with total revenue of $367 million, also up 31% [5]. - The company has a strong customer base, with 58% of ARR coming from customers contributing over $100K, up from 56% a year ago [8]. Customer Growth and Engagement - The company added 154 customers contributing over $100K in ARR, totaling 2,638, a 35% year-over-year increase [7]. - 66% of customers are using three or more products, indicating increased product adoption [7]. Profitability and Financial Health - Samsara's gross margin reached 79%, exceeding its long-term target of 74-76%, while the net loss rate improved from -188% in FY20 to -6% in Q1 FY26 [11]. - The company maintains a healthy balance sheet with $698 million in cash and short-term investments and a current ratio of 1.53 [11]. Competitive Advantages - Samsara's platform offers an ROI exceeding 800% and a 6% reduction in operational costs, with customers reporting an average of 815% ROI [13]. - The company has accumulated extensive operational data, covering over 99% of major U.S. roads, with API calls reaching 120 billion, facilitating innovation [14]. Product Development and Partnerships - In the "Beyond 2025" initiative, Samsara launched over 12 new AI products, significantly increasing its product offerings [15]. - The company has formed strategic partnerships with OEMs and technology firms to enhance product capabilities and customer service [17]. Market Potential - The connected operations market is projected to reach $137 billion, with Samsara's penetration in existing customer vehicles at approximately one-third, indicating significant growth potential [18]. Guidance - For Q2 FY26, Samsara expects revenue between $371 million and $373 million, representing a 24% year-over-year growth [21]. Stock and Valuation - The company's stock is 48% held by institutions, with recent insider selling observed. Samsara's price-to-sales ratio is currently at 16.9x, down from a peak of 29x earlier in the year, suggesting a favorable valuation [23].

Core Viewpoint - Samsara Inc. (IOT) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Recent Performance of Samsara Inc. - For the fiscal year ending January 2026, Samsara Inc. is expected to earn $0.41 per share, unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Samsara Inc. has increased by 27.1%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Samsara Inc.'s upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].