The Internet of Things specialist exceeded analysts’ estimates and management’s guidance.
Samsara (IOT -3.92%), a leader in Internet of Things (IoT) solutions, released its fiscal fourth-quarter 2025 results on March 6. Its non-GAAP EPS of $0.11 outperformed analysts’ estimates of $0.07 and management’s guidance range of $0.07 to $0.08. Revenue was strong at $346.3 million, exceeding Wall Street’s expectations of $335 million, which were in line with guidance.
| Metric | Fiscal Q4 2025 | Fiscal Q4 2025 Analysts’ Estimate | Fiscal Q4 2024 | % Change |
|---|---|---|---|---|
| EPS (non-GAAP) | $0.11 | $0.07 | $0.04 | 175% |
| Revenue | $346.3 million | $335 million | $276.3 million | 25.3% |
| Annual recurring revenue | $1.458 billion | N/A | $1.102 billion | 32.3% |
| Non-GAAP operating margin | 16% | N/A | 5% | 1,100 basis points |
Source: Analysts’ estimates provided by FactSet.
Understanding Samsara’s Business
Samsara specializes in IoT solutions, providing a platform for businesses to harness data from physical operations. Its Connected Operations Cloud processes massive data sets, offering actionable insights to enhance efficiency, safety, and sustainability. The company is focused on expanding its customer base and increasing its annual recurring revenue by onboarding larger clients. Key factors driving its success include its continuous product innovation and extensive ecosystem integration with over 270 third-party systems.
Recently, Samsara has concentrated on leveraging its data platform to offer AI-driven solutions, further reinforcing its value proposition. By focusing on enhancing customer engagement through additional applications and simplifying the integration process with third-party systems, Samsara is sustaining its competitive edge.
Performance Highlights
During its fiscal Q4, which ended Feb. 1, Samsara reported notable improvements in its financial metrics. Non-GAAP EPS was $0.11 compared to $0.04 in the prior-year period. Revenue rose 25.3% to $346.3 million, and the non-GAAP operating margin significantly improved to 16% from just 5% a year earlier.
From a product perspective, Samsara continued advancing its Connected Operations Cloud, which processes more than 10 trillion data points annually. These advancements enable businesses to leverage real-time data for operational insights, increasing their productivity and sustainability. The number of Samsara customers generating over $100,000 in annual recurring revenue for the company grew by 36% year over year to 2,506.
Management pointed out that its integrated ecosystem, while comprehensive, requires meticulous management due to the complexities it introduces. Still, product innovations and AI capabilities are key differentiators that enhance customer outcomes significantly.
Looking Ahead
For its current quarter, Samsara projects revenue between $350 million and $352 million, a non-GAAP operating margin of 7%, and EPS of $0.05 to $0.06. For fiscal 2026, it expects revenue growth of 22% to 23%, a slower pace than its 33% growth rate from fiscal 2025.
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