Samsara 2026 Q3 Earnings 120.5% Net Income Surge Reverses 5-Year Loss

Samsara (IOT) reported Q3 2026 earnings on Dec 9, 2025, with results exceeding expectations. The company delivered a 29.2% YoY revenue increase to $415.98 million and turned a $37.81 million net loss into a $7.77 million profit. While Q4 guidance remained within expected ranges, the stock’s post-earnings rally was tempered by concerns over elongating sales cycles for large deals.

Revenue

Samsara’s total revenue rose 29.2% to $415.98 million in Q3 2026, driven by robust subscription growth. Subscription revenue, the company’s core business, surged to $408.12 million, while other revenue contributed $7.85 million. This performance underscored the company’s shift toward recurring revenue streams, which now account for nearly 98% of total revenue.

Earnings/Net Income

The company returned to profitability with net income of $7.77 million, a 120.5% improvement from a $37.81 million loss in Q3 2025. Earnings per share (EPS) turned positive at $0.01, reversing a $0.07 loss in the prior-year period. This marked a significant turnaround after five consecutive quarters of losses, though operational challenges persist.

Price Action

Samsara’s stock edged down 1.75% on the day of the report but surged 15.30% during the week, reflecting mixed investor sentiment. Month-to-date gains reached 14.93%, driven by optimism over the earnings beat and non-GAAP profitability.

Post-Earnings Price Action Review

The strategy of buying IOT after earnings beat and holding for 30 days underperformed the benchmark, with a 36.81% return versus 45.59% for the benchmark, yielding an excess return of -8.78%. While the Sharpe ratio of 0.13 suggested reasonable risk-adjusted returns, the absence of drawdowns during the backtest period highlighted its volatility.

CEO Commentary

CEO and President John Bicket emphasized Samsara’s progress in scaling its Connected Operations Cloud, noting, “Our ability to deliver profitability while maintaining strong revenue growth is a testament to our operational discipline.” He highlighted challenges in large deal cycles but reiterated confidence in long-term demand for IoT solutions.

Guidance

Samsara provided Q4 2026 revenue guidance of $425–435 million and EPS of $0.12–0.13, aligning with current market expectations. The company reaffirmed its FY 2026 guidance of $1.65–1.70 billion in revenue and $0.50 EPS, reflecting sustained momentum in customer expansion.

Additional News

1. CFO Selling Shares: CFO Dominic Phillips sold 18,348 shares ($845.7K) via a prearranged 10b5-1 plan, signaling no immediate change in leadership but raising questions about insider confidence.

2. Sales Cycle Concerns: The earnings call highlighted extended sales cycles for large deals, prompting a 3% post-earnings stock drop despite strong revenue and profit beats.

3. Institutional Buy-In: Jump Financial and Temasek Holdings increased stakes in Q2, with Jump adding 3,339.5% to 264,600 shares ($10.53M) and Temasek acquiring 74,171 shares ($2.95M), reflecting institutional confidence in Samsara’s strategic direction.