Samsara reported a string of companywide gains in fiscal 2026 — adding 133 new customers paying more than $100,000 in annual recurring revenue in the second quarter, ending that quarter with 2,771 such accounts and lifting ARR from those large customers 37% year over year to $1.2 billion while expanding its non‑GAAP operating margin to 17% for the year.
The scale of the shift is clear in the company’s customer mix: 147 customers now contribute more than $1 million in ARR, roughly 96% of customers with more than $100,000 in ARR use at least two products, and 69% use three or more, underscoring a deepening product footprint across large fleets and industrial deployments.
Operationally, the fourth quarter illustrated how that product breadth translates into new business. Nine of the company’s top 10 net new ACV deals included two or more products, and six of those top 10 deals included four or more products. Offerings launched over the last two years accounted for 23% of net new ACV in the quarter, a sign that newer modules are contributing meaningfully to sales.
Revenue for the period reached $1.62 billion and the company recorded a loss of $9.12 million, even as margins improved: fourth‑quarter non‑GAAP operating margin rose to 21% from 16% a year earlier. For the full year, non‑GAAP operating margin expanded to 17% from 9% in fiscal 2025, a swing that management attributed to tighter expense discipline and higher average revenue per customer as multi‑product deployments scale.
Context matters: samsara’s growth aligns with rising adoption of its Connected AI Platform and a suite of IoT trackers, telematics and video monitoring devices. Large customers — vehicle OEMs and fleet management firms among them — are increasingly buying bundles, which raises monetization without driving proportional increases in acquisition costs. That dynamic helps explain why newer product launches now account for nearly a quarter of net new ACV in the most recent quarter.
The clearer picture of product-led growth and margin progress, however, sits next to a mixed market reception. The stock has delivered a 19.5% three‑month share price return but an 8.2% year‑to‑date decline; total shareholder return fell 31.5% over one year even as it rose 63.4% over three years. Samsara trades at about a US$18.2 billion valuation against a narrative fair value of $65 from one analyst model, while the last close reported was $31.15.
That disparity frames the central tension: the company is turning product adoption into higher ARR and better margins, yet investors still weigh near‑term profitability and the path to sustained earnings. Management is projecting fiscal 2027 revenue growth of 21% to 22% and a 19% non‑GAAP operating margin; the Zacks Consensus Estimate for fiscal 2027 earnings stands at $0.69 per share and has not moved in the past 60 days.
The most consequential question now is whether Samsara can translate its multi‑product penetration and improved unit economics into consistent profitability that narrows the gap between its market value and longer‑term fair‑value assessments. If the company hits its fiscal 2027 targets — sustained topline growth in the low‑twenties percentage range and a near‑20% non‑GAAP margin — the valuation discrepancy should begin to close; if it does not, the market appears likely to keep assigning a discount despite clear product and margin momentum.
