Samsara Inc. reported third‑quarter fiscal 2026 revenue of $416 million, a 29% year‑over‑year increase from $322 million in Q3 FY2025. The company’s adjusted diluted earnings per share rose to $0.15, beating the consensus estimate of $0.12 by $0.03, or 25%. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin subscription contracts, which offset the impact of a modest rise in operating expenses related to AI‑powered product development.
Non‑GAAP operating margin expanded to 19% from 11% in the same quarter a year earlier, reflecting both the higher mix of subscription revenue and improved operational leverage as the platform scales. GAAP operating margin stood at 0%, a turnaround from the negative margin reported in Q3 FY2025, largely due to the elimination of one‑time restructuring charges and the recognition of stock‑based compensation adjustments. The company also announced that it has achieved GAAP profitability for the first time, a milestone that signals stronger cash‑flow generation and a more sustainable cost structure.
Guidance for the fourth quarter of fiscal 2026 remains unchanged, with revenue expected to fall between $421 million and $423 million and non‑GAAP operating margin projected at 16%. Management reiterated its confidence in continued demand for its Connected Operations Platform, citing a record 219 new customers with annual recurring revenue over $100,000 and 17 new customers with ARR above $1 million. The full‑year revenue outlook was raised to $1.595 billion–$1.597 billion, up from the prior guidance of $1.595 billion, reflecting the company’s belief that the AI‑driven product suite will continue to accelerate adoption across transportation, construction, logistics, and government sectors.
CEO Sanjit Biswas highlighted the company’s “durable and efficient growth” and emphasized the role of AI in driving smarter, safer, and more sustainable operations. He noted that Samsara’s partnership with large physical‑operations organizations is a key driver of the recent customer growth, and that the company’s AI initiatives—such as AI Multicam and Connected Workflows—are beginning to generate incremental annual contract value. Biswas also underscored the company’s focus on operational efficiency, stating that the path to sustained profitability is being paved by disciplined cost control and strategic investments in high‑return verticals.
Investors reacted with mixed sentiment. While the earnings beat and GAAP profitability milestone were welcomed, the guidance for the final quarter was viewed as largely in line with expectations, tempering enthusiasm. Analysts pointed to the strong margin expansion and the raised full‑year outlook as positive signals, but noted that the company’s valuation remains high relative to peers, which may moderate the market’s response.
The results underscore Samsara’s ability to scale its platform while maintaining profitability, and the company’s continued focus on AI integration positions it to capture further market share in the connected‑operations space. The earnings beat, margin improvement, and raised guidance collectively suggest that Samsara’s management is confident in sustaining growth momentum and achieving long‑term profitability.
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