Samsara Surges 12% as Q4 Earnings and Revenues Surpass Estimates

Samsara Inc. IOT shares gained 11.5% during Thursday’s extended trading session after the company reported better-than-expected fourth-quarter fiscal 2026 results.

Samsara’s fourth-quarter non-GAAP earnings of 18 cents per share came above management’s guidance of 12-13 cents and increased 63.6% year over year. The figure also surpassed the Zacks Consensus Estimate of 13 cents.

Samsara’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 54.5%.

Samsara’s fourth-quarter revenues of $444.3 million topped the consensus mark of $422.1 million and came above management’s $421-$423 million guidance range. The top line increased 28% on a reported basis and 27% on a constant-currency basis.

Samsara Inc. Price, Consensus and EPS Surprise

Samsara Inc. price-consensus-eps-surprise-chart | Samsara Inc. Quote

Samsara’s Q4 Results in Details

Samsara’s non-GAAP gross profit increased 27.2% year over year to $343.2 million, while the gross margin contracted 100 bps to 77%.

The non-GAAP operating income was $91.8 million, up from the year-ago quarter’s $55.9 million. The non-GAAP operating margin expanded 500 bps to 21%.

General & administrative (G&A) expenses on a non-GAAP basis increased to $40.9 million from $36.7 million in the year-ago quarter. G&A expenses accounted for 9% of quarterly revenues, down from 11% in the year-ago quarter.

Research & development (R&D) expenditures on a non-GAAP basis increased to $56.9 million from $48.1 million in the year-ago quarter. R&D expenses accounted for 13% of fourth-quarter revenues, down from 14% in the year-ago quarter.

Non-GAAP sales & marketing costs of $153.5 million were up from $129 million. The same represented 35% of fourth-quarter revenues, lower than 37% in the year-ago quarter.

Samsara’s Balance Sheet & Other Details

As of Jan. 31, 2026, IOT’s cash and cash equivalents were $318.8 million compared with $275.1 million in the previous quarter.

The company generated operating cash flow of $69.7 million and free cash flow of $62.9 million in the fourth quarter of fiscal 2026.

In fiscal 2026, Samsara generated operating and free cash flows of $236.2 million and $208.7 million, respectively.

Samsara’s Guidance for FY27

Samsara projects fiscal 2027 revenues between $1.965 billion and $1.975 billion. The Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $1.91 billion, indicating a year-over-year increase of 19.8%.

The non-GAAP operating margin is anticipated to be 19% for fiscal 2027. Non-GAAP earnings per share are expected to be in the band of 65-69 cents. The Zacks Consensus Estimate for earnings is pegged at 57 cents per share, indicating a year-over-year rise of 12.9%.

For the first quarter of fiscal 2027, Samsara expects revenues to be in the band of $454-$456 million. The Zacks Consensus Estimate for revenues is pegged at $444.8 million, suggesting a year-over-year jump of 21.2%.

Samsara expects non-GAAP earnings per share to be between 12 cents and 13 cents. The Zacks Consensus Estimate for earnings is pegged at 13 cents per share, calling for a year-over-year rise of 18.2%.

IOT’s Zacks Rank & Stocks to Consider

Currently, Samsara carries a Zacks Rank #3 (Hold).

HUYA HUYA, Micron Technology MU and Getty Images GETY are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While HUYA and Micron Technology sport a Zacks Rank #1 (Strong Buy) each, Getty Images carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Micron Technology is set to report second-quarter fiscal 2026 results on March 18. MU shares have appreciated 200.3% in the trailing six-month period.

HUYA is set to report fourth-quarter 2025 results on March 17. HUYA shares have lost 0.5% in the trailing six-month period.

Getty Images is set to report fourth-quarter 2025 results on March 16. GETY shares have lost 53.7% in the trailing six-month period.

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This article originally published on Zacks Investment Research (zacks.com).

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