Samsara (IOT) Q3 2026 earnings summary

Executive summary

• Achieved $1.75 billion in ARR, up 29% year-over-year, and first quarter of GAAP profitability with net income of $7.8 million compared to a net loss of $37.8 million in the prior year quarter.

• Q3 revenue reached $416 million, up 29% year-over-year, with strong free cash flow margin of 13% and free cash flow of $56 million for the quarter.

• Record growth in large customers: 2,990 with $100K+ ARR (up 219 in Q3), and 164 with $1M+ ARR (up 17 in Q3), both tying or setting quarterly records.

• Over 95% of $100K+ ARR customers use two or more products, with notable wins in public sector, industrial, and media organizations.

• Large customer momentum driven by scalable, secure infrastructure, tailored go-to-market strategies, and strong multi-product adoption.

Financial highlights

• Non-GAAP gross margin was 78%, non-GAAP operating margin hit a record 19%, and free cash flow margin was 13%.

• Net new ARR was $105 million, up 24% year-over-year, marking the highest growth rate in seven quarters.

• Dollar-based net retention rate was approximately 115%.

• Non-GAAP S&M margin improved to 40%, R&D margin to 13%, and G&A margin to 10% in Q3 FY26.

• Cash, cash equivalents, and investments totaled $1,147.2 million as of November 1, 2025.

Outlook and guidance

• Q4 revenue expected between $421M and $423M, representing 22% year-over-year growth; FY26 revenue expected between $1.595B and $1.597B, up 28% year-over-year.

• Non-GAAP operating margin for Q4 and FY26 projected at 16%; non-GAAP EPS for Q4 between $0.12 and $0.13, and for FY26 between $0.50 and $0.51.

• Initial FY27 revenue guide expected to be higher than current consensus due to Q3 outperformance.

• Management expects continued investment in sales, marketing, and R&D to drive growth and innovation.

• Existing liquidity is projected to be sufficient for at least the next 12 months.