Samsara delivered another quarter of 30% growth as demand for connected-operations technology remained strong across transportation and other physical industries. The results point to continued enterprise spending on fleet management, safety, artificial intelligence and operational efficiency, even as businesses remain selective about technology investments and costs.

Revenue and Recurring Revenue Continue to Expand

Samsara reported fiscal second-quarter revenue of $508.4 million for the quarter ended August 1, up 30% from $391.5 million a year earlier. Revenue also exceeded the company’s previous guidance of $482 million to $484 million, while annual recurring revenue reached $2.125 billion, also increasing 30% year over year.

Net new ARR totaled $134.1 million, up 28% from the prior-year period. The company’s largest customers remained a significant growth driver, with 3,605 customers generating more than $100,000 in ARR, an increase of 242 during the quarter. These customers represented $1.3 billion of ARR, or 63% of the companywide total, compared with 59% a year earlier.

Transportation and Mexico Strengthen Growth

Transportation remained an important source of new business as fleet operators continued adopting technology aimed at improving safety, efficiency and asset utilization. Samsara also reported accelerating growth in Mexico, where year-over-year net new annual contract value increased for the second consecutive quarter.

Security-related products are becoming an important use case in the Mexican market, including tools such as panic buttons and vehicle immobilizers. The company pointed to large transportation operators as evidence that its platform is gaining traction among increasingly complex fleets.

The expansion is significant because Samsara estimates that a large portion of commercial vehicles in North America remain unconnected, leaving a substantial potential market for fleet-management and connected-operations technology. At the same time, the company is expanding beyond core tracking services into AI, maintenance, safety and other applications, increasing the potential revenue generated from individual customers.

Profitability Improves as AI Adoption Accelerates

Samsara posted GAAP operating income of $4.9 million, compared with an operating loss of $26.6 million in the year-earlier quarter. GAAP earnings were 3 cents per share, marking the company’s fourth consecutive quarter of GAAP profitability.

Non-GAAP operating income increased to $106 million from $59.7 million, while the non-GAAP operating margin expanded to 21% from 15%. Free cash flow reached $64.7 million, compared with $44.2 million a year earlier.

The company also highlighted increasing adoption of its newer AI capabilities, with some AI features seeing adoption increase more than fourfold over the previous two months. For investors, the combination of recurring-revenue growth and improving profitability will be important as Samsara continues investing in AI and connected devices.

Samsara now expects fiscal 2027 revenue of $2.043 billion to $2.047 billion, representing approximately 26% growth, with a non-GAAP operating margin of 21% and adjusted diluted earnings of 76 to 78 cents per share. Management expects the company to remain GAAP profitable in both the third quarter and the full fiscal year. The key variables to monitor will be enterprise customer additions, Mexico and transportation growth, AI monetization, hardware supply costs and the company’s ability to maintain strong growth while expanding cash generation.