IOT NYSE Russell 1000 Earnings call
Samsara (IOT) · Q2 2026 results and valuation
Share price: $42.24 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 3 Sep 2026 and 4 Jun 2026
Net income down 63.5% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−63.5%
Net income vs Q1 2026
Outlook given
Net income 16.2M vs 44.5M
Revenue +6.2%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Similar to last call.
3 · What stood out
Samsara's annual recurring revenue crossed $2.1 billion in Q2, growing 30% year-over-year due to $134 million in net new ARR.
Valuation
Is Samsara undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $18.33 a share — the stock trades 130% above it. Today's price assumes 31.9% growth a year.
Current price
$42.24
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+31.9% for 10 yrs
Fair value / share
$18.33
Buy below
$13.75
Price vs fair value
Overvalued 130%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
The company reported strong product market fit while expanding into new technologies like connected asset maintenance and AI agents to address platform complexity.
Source quote
“So I think it's really strong product market fit. And they do have a lot of complexity in our platform is designed for that. As we continue to innovate, bring new technologies to market, new ideas like connected asset maintenance and AI agents and 360 cameras and so on.”
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Key theme
The company expects improved profitability as free cash flow margins stabilize in a more normal supply chain environment following elevated costs and strong customer demand.
Source quote
“to create a buffer given the strong customer demand we're seeing and elevated supply chain cost in the second half... We believe operating margin is the best indicator of improved profitability and is the best forward indicator of where free cash flow margin will be in a more normal supply chain environment as we've seen in the past.”
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Guidance
The company expects free cash flow margin to be approximately 100 basis points lower than FY '26 because more IoT devices are required to support growth.
Source quote
“We now expect free cash flow margin to be approximately 100 basis points lower than FY '26, primarily due to more IoT devices required to support our stronger...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“We believe operating margin is the best indicator of improved profitability and is the best forward indicator of where free cash flow margin will be in a more normal supply...”
“242 $100,000-plus ARR customers added a quarterly record, resulting in 38% year-over-year ARR growth, the fourth consecutive quarter of sequential acceleration at a larger scale.”
“And I think that product innovation in conjunction with the focus that we have on the go-to-market side has really allowed this to be a strong driver of our growth.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-08-01)
| Metric | Q2 2026period end 2026-08-01 | Q1 2026period end 2026-05-02 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 508.4M | 478.8M | +6.2% | 391.5M | +29.9% |
| Gross profit | 392.6M | 361.1M | +8.7% | 301.0M | +30.4% |
| Operating income | 4.9M | 7.2M | −32.2% | -26.6M | Turned profit |
| Net income | 16.2M | 44.5M | −63.5% | -16.8M | Turned profit |
| EPS | 0.03 | 0.08 | −62.5% | -0.03 | Turned profit |
| P/E today 282.6 | 248.5 | 304.9 | −56.4 | 12-mo loss | — |
Topics
Most discussed now
- It's also enabling new use cases like the Tracking Label, which Samsara also announced at Beyond.
- This strong multiproduct adoption helped us achieve Samsara's target dollar-based net retention rate of approximately 115% for core…
- As Samsara's customer base grows, its data asset scales with it.
- The long-term unit economics of these investments are still really good even at temporarily elevated prices.
- Similarly, these agents can help with things like warranty claims.
Faded since Q1 2026
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- Fading They're less advanced than the kind of IT shops that may be writing a lot of code and kind of...
- Dropped Jason, just maybe background for the others on the call, the Supreme Court basically ruled that freight brokers can be...
- Fading In Q1, 9 of the top 10 net new ACV deals included 2 or more products and 4 included 4...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Change to shareholder rights; Articles or bylaws amended · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K