Samsara (NYSE:IOT) executives highlighted accelerating growth at scale, expanding profitability, and increasing adoption of newer products during the company’s fourth-quarter fiscal 2026 earnings call on March 5. Management also introduced its first AI agent product and detailed how proprietary operational data is shaping its product roadmap and competitive positioning.
Growth at scale driven by large customers and multi-product adoption
CEO and co-founder Sanjit Biswas said fiscal 2026 was “an outstanding year of durable and efficient growth,” ending the year with $1.9 billion in annual recurring revenue (ARR), up 30% year-over-year. Net new ARR totaled $432 million for the year, up 21%, with $145 million added in the fourth quarter.
- 3,194 customers ended the year with $100,000+ in ARR, including 204 added in Q4.
- ARR from $100,000+ ARR customers reached $1.2 billion, up 37% year-over-year, representing 61% of total ARR.
- ARR from $1 million+ customers grew 56% year-over-year.
- The company signed a quarterly record 13 $1 million+ net new ACV transactions in Q4.
Phillips also highlighted increasing platform breadth, noting that 96% of $100,000+ ARR customers subscribe to two or more products and 69% subscribe to three or more. In Q4, nine of the top 10 net new ACV deals included at least two products, and six included four or more products.
Emerging products contribute meaningfully; Asset Tags expand footprint
Management repeatedly pointed to newer products as a growing contributor. Phillips said 23% of net new ACV in Q4 came from products launched over the past two years, including AI Multicam, Asset Maintenance, Asset Tags, Commercial Navigation, qualifications, routing, training, and workflows. Emerging products now contribute more than $100 million in ARR, and eight of the top 10 net new ACV transactions included an emerging product.
On the call, Biswas described strong adoption of emerging products among larger customers, saying they have the operational complexity to “immediately” apply new tools such as Commercial Navigation, maintenance, and training. Phillips added that net new ARR acceleration over the last three quarters was broad-based, not driven solely by Asset Tags, though Asset Tags were cited as an important contributor within emerging products.
Biswas detailed product and network enhancements intended to expand asset visibility use cases. He said Samsara has doubled network density over the last two years, enabling near real-time Asset Tag detection. The company also announced an integration with Hubble’s terrestrial network of more than 90 million consumer smartphones to extend visibility inside buildings.
Samsara introduced a new smaller tag, Asset Tag XS, which Biswas said was customer-driven for compact handheld tools and specialized equipment, with similar pricing to the existing tag family. The company also introduced the latest generation of its Asset Tag, featuring six years of maintenance-free battery life—described as a 50% increase over the previous generation—along with improved range and precision.
Phillips said Asset Tags ending ARR more than tripled year-over-year and highlighted what he described as Samsara’s largest-ever Asset Tags deal, with Total Safety deploying tags across high-value safety equipment and tools.
AI roadmap shifts from insights to automation; first agent announced
Biswas framed the company’s long-term strategy in three phases: connecting physical operations, analyzing data for insights, and automating workflows with “proprietary AI agents.” He said Samsara now has more than 25 trillion data points flowing through its platform each year, and argued this proprietary operational data creates a “data network effect” that improves AI models as more customers and assets are added.
During the quarter, Samsara announced its first AI agent, the AI Safety Coach. Biswas said the agent reviews multiple sources—such as safety event videos, driver safety records, and weather conditions—to deliver automated safety outcomes, including real-time in-cab voice coaching and personalized end-of-week coaching videos. He also said the agent can dynamically adjust safety alerts based on conditions such as snow.
When asked about monetization, Biswas said AI agents are new for customers and that Samsara plans to first understand usage patterns before determining pricing. He said the company expects to share more as the products are rolled out, starting in the summer around its Beyond customer conference, and noted additional agents under development for compliance, maintenance, and dispatching.
Executives also discussed the value of data over time. In response to a question on whether older data retains value, Biswas said accumulated data can improve predictive maintenance and risk analysis, citing examples such as understanding time-to-failure patterns for specific truck models and analyzing risk patterns across drivers and weather conditions over time.
Margins, profitability, and FY2027 outlook
Phillips said Samsara achieved its second consecutive quarter of GAAP profitability and guided to GAAP profitability for the full year in fiscal 2027. For fiscal 2026, he reported:
- Revenue of $1.6 billion, up 30% year-over-year (or 29% in constant currency).
- Non-GAAP gross margin of 78%, up 1 point year-over-year.
- Non-GAAP operating margin of 17%, up 8 points year-over-year.
- Free cash flow margin of 13%, up 4 points year-over-year.
For Q1 fiscal 2027, the company guided for revenue of $454 million to $456 million, representing 24% year-over-year growth (or 22% to 23% in constant currency), with 15% non-GAAP operating margin and non-GAAP EPS of $0.12 to $0.13. For the full fiscal year 2027, Samsara guided for revenue of $1.965 billion to $1.975 billion, up 21% to 22% year-over-year (about 21% in constant currency), 19% non-GAAP operating margin, and non-GAAP EPS of $0.65 to $0.69.
Asked about stock-based compensation, Phillips said the company views equity compensation as a real cost and expects continued leverage, noting SBC was in the “low 20s” last year and was 20% in fiscal 2026, with expectations to be below that in fiscal 2027.
Operational updates and events
Biswas announced that Chief Product Officer Kiren Sekar has retired. CTO and co-founder John Bicket will take over leadership of engineering, while SVP of Product Management Johan Land will lead product. Samsara also announced its Beyond 2026 customer conference, scheduled for June 23-26 in Las Vegas, which will include an Investor Day.
During Q&A, management also addressed supply chain considerations, with Phillips noting some increased pricing on storage components and saying the company incorporated those dynamics into modeling notes and gross margin expectations. He added that Samsara believes it is well-positioned to navigate the environment.
About Samsara (NYSE:IOT)
Samsara develops an industrial Internet of Things (IoT) platform designed to help organizations monitor, manage, and optimize physical operations. The company combines connected hardware — including telematics devices, GPS trackers, dash cameras, and environmental sensors — with cloud-based software to provide real-time visibility into vehicles, mobile equipment, and fixed assets. Its software offers tools for fleet management, driver and worker safety, asset tracking, compliance (including electronic logging), maintenance scheduling, and operational analytics.
The Samsara platform emphasizes integration of live data streams with analytics and workflow features to drive efficiency and safety across industries that rely on dispersed equipment and mobile workforces.
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