Powerfleet, Inc. reported total revenue of $111.7 million for its second quarter of fiscal 2026, a 45 % year‑over‑year increase from $77.0 million in Q2 FY25 and a 7.3 % sequential rise from $104.5 million in Q1 FY26. Services revenue, the company’s high‑margin SaaS segment, grew 57 % YoY to $89.3 million, accounting for 83 % of total revenue and underscoring the shift toward recurring, subscription‑based income. Gross profit climbed to $62.6 million, an 11 % sequential gain, and the gross margin expanded to 56 % from 54 % in the prior year, a lift driven by the higher mix of services and improved pricing power, offset only by a $4.6 million non‑cash amortization charge that tempered margin growth.
The earnings per share figure was not disclosed in the release, leaving a gap in the profitability picture. However, the company’s strong revenue momentum and margin expansion suggest that earnings would likely have met or exceeded analyst expectations, a conclusion supported by the guidance upgrade.
Powerfleet raised its fiscal‑year 2026 revenue guidance to $435 million–$445 million, an increase of $5 million to $10 million over the previous $430 million–$440 million range. The adjustment signals management’s confidence that demand for its AI‑powered IoT platform and SaaS services will continue to accelerate, and it reflects the company’s belief that the recent acquisitions—Fleet Complete and MiX Telematics—are already contributing to top‑line growth.
CEO Steve Towe described the quarter as “defining,” noting that “Q2 was a defining quarter for Powerfleet, marked by record revenue and strong performance across key financial and operational metrics.” He added that the company is “expanding momentum in our AI‑powered SaaS solutions and solid growth across our core global markets,” highlighting the strategic focus on high‑margin recurring revenue.
Investors reacted positively to the results, with market sentiment buoyed by the raised guidance and robust revenue growth. Analysts emphasized the company’s successful transition to a SaaS model and the continued impact of its recent acquisitions, viewing the guidance increase as a clear sign of confidence in sustained demand.
Powerfleet’s trajectory is further reinforced by recent accolades, including the Frost & Sullivan 2025 North America Product Leadership Award for its Unity platform, and by its ongoing investment in AI and connected‑vehicle solutions. The company’s strategic acquisitions have broadened its market reach, while the shift toward subscription services positions it for higher margins and recurring revenue streams in a competitive IoT landscape.
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