Samsara 2026 Q3 Earnings Net Income Turns Positive with 120.5% Surge

Samsara (IOT) reported its fiscal 2026 Q3 earnings on Dec 9, 2025, delivering a strong performance that exceeded expectations. The company posted revenue of $415.98 million, a 29.2% year-over-year increase, and returned to profitability with EPS of $0.01, reversing a $0.07 loss in the prior-year period. Guidance for FY 2026 was set at $0.50 EPS, while Q4 2026 guidance ranged between $0.12-$0.13. Analysts noted the results as a positive step, though concerns lingered over longer sales cycles for large deals.

Revenue

Samsara’s revenue growth was driven by robust subscription services, which accounted for the majority of its $415.98 million total revenue. Subscription revenue alone reached $408.12 million, reflecting strong demand for its IoT and AI-driven solutions. Additional revenue of $7.85 million further supplemented the top-line performance, underscoring diversified income streams.

Earnings/Net Income

The company achieved a remarkable turnaround, posting net income of $7.77 million in Q3 2026, a 120.5% improvement from a $37.81 million loss in Q3 2025. Earnings per share rose to $0.01, a 114.3% positive swing from the prior-year loss. This marked Samsara’s first profitable quarter in five years, signaling a pivotal shift in its financial trajectory.

Post-Earnings Price Action Review

The strategy of buying IOT when earnings beat and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 36.81% return, compared to a 45.59% return for the benchmark, resulting in an excess return of -8.78%. While the Sharpe ratio was 0.13, indicating a reasonable risk-adjusted return, the maximum drawdown was 0.00%, suggesting the strategy had no downside risk during the backtest period.

Samsara’s stock price edged down 1.75% during the latest trading day but surged 15.30% over the past week and 14.93% month-to-date. Analysts remain divided, with some citing improved fundamentals and others cautioning about sales cycle uncertainties.

Additional News

Within three weeks of the earnings report, Samsara announced a partnership with Swissport North America, which credited the company’s technology for a 60% reduction in operational incidents. Meanwhile, CFO Dominic Phillips sold 18,348 shares worth $845,700, executed under a prearranged trading plan. Institutional investors also showed renewed interest, with Jump Financial LLC increasing its stake by 3,339.5% in Q2.