Why did IOT consistently beat EPS forecasts in 2025?

Samsara Inc. (IOT) consistently beat EPS forecasts in 2025 due to several key factors:

1. Strong Revenue Growth: Samsara's revenue grew significantly, with a 35.7% increase in the third quarter of 2025 compared to the previous year. This robust growth in revenue contributed to the company's ability to beat EPS forecasts.
2. Efficient Cost Management: Despite the increase in revenue, Samsara managed to keep its cost under control, which helped in maintaining profitability and beating EPS expectations. For instance, the company's gross profit margin was reported at 75.66%.
3. Strategic Investments: Samsara's continued investment in research and development (R&D) introduced new products and features addressing evolving customer needs and market trends. These investments not only strengthened Samsara's product portfolio but also supported its growth trajectory.
4. Market Expansion: The company's focus on expanding its market reach and solidifying its position in large enterprise markets paid off. This strategic approach allowed Samsara to capture new opportunities and increase its customer base, which in turn boosted its financial performance.
5. Operational Improvements: Samsara's operational improvements, such as the increase in annual recurring revenue (ARR), reflected its efficiency in generating revenue from existing customers. This consistent growth in ARR indicates strong customer loyalty and the ability to extract value from existing relationships.

In conclusion, Samsara's ability to beat EPS forecasts in 2025 can be attributed to its strong revenue growth, efficient cost management, strategic investments, market expansion, and operational improvements. These factors collectively contributed to the company's robust financial performance and ability to exceed market expectations.