Samsara's Q2 Earnings Surpass Expectations, Revenues Rise Y/Y

Core Insights - Samsara Inc. reported second-quarter fiscal 2026 earnings of 12 cents per share, exceeding the Zacks Consensus Estimate of 7 cents by 71.4%, and up from 5 cents per share a year ago [1][9] - The company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 153.8% [1] Financial Performance - Revenues for the quarter reached $391.5 million, surpassing the Zacks Consensus Estimate by 5.15%, and increased from $300.2 million year-over-year [2][9] - Annual recurring revenue (ARR) stood at $1.64 billion, reflecting a 30% year-over-year growth, with net new ARR growing 19% year-over-year to $105 million [3][9] - Non-GAAP gross profit was $305.7 million, up from $230.8 million in the prior year, with a non-GAAP gross margin of 78%, expanding 100 basis points [6] - Non-GAAP operating income increased to $59.7 million from $17.6 million a year earlier, with a non-GAAP operating margin of 15%, expanding 900 basis points [6] Customer Growth - The company added 133 new customers with $100K+ ARR, bringing the total to 2,771, and 17 new customers with $1 million+ ARR, totaling 147 [4][9] - Customers contributing over $1 million in ARR now account for more than 20% of total ARR [4][9] Geographic Performance - 15% of net new annual contract value (ACV) came from outside the United States, with Europe showing sequential growth acceleration [5] - The construction sector contributed the highest net new ACV mix for the eighth consecutive quarter [5] Cash Flow and Balance Sheet - As of August 2, 2025, Samsara's cash, cash equivalents, and short-term investments totaled $702 million, up from $698 million in the previous quarter [7] - The company maintained a debt-free balance sheet with no long-term debt and generated $50.2 million in net cash from operating activities [7] Future Guidance - For the third quarter of fiscal 2026, Samsara expects revenues between $398 million and $400 million, indicating a 24% year-over-year growth [8] - The company projects a non-GAAP operating margin of 15% and diluted EPS between 11 cents and 12 cents [8] - For the full fiscal year 2026, total revenues are expected to be between $1.574 billion and $1.578 billion, implying a 26% year-over-year growth [11]