Samsara delivered another quarter of 30% growth at scale as demand for connected operations technology expanded across transportation, construction, logistics, manufacturing and other asset-intensive industries. The results show that the company’s combination of Internet of Things infrastructure, recurring software revenue and artificial intelligence is gaining traction as businesses seek greater efficiency across the physical economy.

Revenue and ARR Maintain a 30% Growth Rate

Samsara generated $508.4 million in second-quarter revenue, up 30% from $391.5 million a year earlier and ahead of the approximately $483 million market estimate. Revenue increased 29% on a constant-currency basis, indicating that the growth was largely driven by underlying business expansion rather than foreign-exchange movements.

The company’s most important recurring-revenue measure also remained strong. Ending ARR reached $2.125 billion, increasing 30% year over year for the third consecutive quarter. Net new ARR was $134.1 million, up 28%, while customers generating more than $1 million in ARR collectively produced more than $500 million of ARR, an increase of more than 50% for the third consecutive quarter.

Enterprise expansion is becoming increasingly important to the growth profile. Samsara added a quarterly record of 242 customers with more than $100,000 in ARR and 20 customers with more than $1 million in ARR. That trend indicates that the platform is moving deeper into large organizations rather than relying solely on broad customer acquisition.

AI Is Becoming a Larger Part of the Connected Operations Platform

Samsara’s latest growth cycle is increasingly linked to Operational AI, which applies artificial intelligence to physical-world operations rather than purely digital workflows. The company connects vehicles, equipment, cameras, sensors and frontline workers, generating operational data that can be analyzed to improve safety, efficiency, maintenance and resource utilization.

Management said customer adoption of some of its newest AI features increased by more than four times over the past two months. The company has been expanding AI capabilities across areas including driver safety, asset monitoring, workflow automation and operational intelligence. Its newer agentic products are designed to automate tasks that previously required manual intervention.

The strategic opportunity extends beyond software functionality. Samsara’s platform captures data from physical assets and operations, creating a proprietary information layer that can support increasingly sophisticated AI applications. The company said its customers generated more than 25 trillion data points annually across more than 100 billion miles driven, providing a substantial base for the development of operational AI.

Profitability Improves as the Business Scales

Growth was accompanied by meaningful operating leverage. Non-GAAP operating income increased to $106 million, producing a 21% operating margin compared with 15% a year earlier. Adjusted earnings per share reached $0.20, up from $0.12 and ahead of the approximately $0.16 consensus estimate.

Samsara also generated $73.5 million of operating cash flow and $64.7 million of free cash flow during the quarter, representing a 13% free-cash-flow margin. Non-GAAP gross margin remained approximately 78%, indicating that the company is maintaining a high-margin software economics profile despite continued investment in hardware, AI and international expansion.

For FY27, Samsara now expects revenue of $2.043 billion to $2.047 billion, compared with its previous forecast of $2.005 billion to $2.013 billion. Adjusted EPS is expected at $0.76 to $0.78, while non-GAAP operating margin is projected at approximately 21%. Third-quarter revenue is forecast at $514 million to $516 million, with adjusted EPS of $0.18 to $0.19.

The market reaction underscored the strength of the results. Samsara shares closed at $38.75, up 5.3% in regular trading on September 3, while the stock rose roughly 12% in after-hours trading following the earnings release. The response reflects both the earnings beat and the higher outlook, although the broader U.S. technology market also advanced sharply that day.

Going forward, the central question is whether Samsara can sustain 30% ARR growth while expanding its AI monetization and operating margins. Investors will be watching large-enterprise adoption, net new ARR, AI-feature utilization, free cash flow and the pace at which newer products contribute to customer expansion. The company’s ability to translate its growing physical-world data advantage into recurring AI-driven revenue could determine whether its current growth rate remains durable as the connected-operations market matures.