Samsara 2026 Q3 Earnings Profitability Returns with 120.5% Net Income Surge

Samsara (IOT), ranked by market capitalization, reported fiscal 2026 Q3 earnings on Dec 9, 2025. The company exceeded expectations, reporting EPS of $0.15 against a $0.12 forecast and revenue of $415.98 million, surpassing the projected $398.92 million. Management set FY 2026 guidance at $0.50 EPS, reflecting confidence in sustained performance improvements.

Revenue

Revenue reached $415.98 million, driven by robust subscription services. Subscription revenue accounted for $408.12 million, reflecting the company’s core strength, while other revenue added $7.85 million, contributing to the overall growth.

Earnings/Net Income

Samsara returned to profitability with EPS of $0.01, reversing a $0.07 loss in 2025 Q3 (114.3% positive change). Net income surged to $7.77 million, a 120.5% swing from a $37.81 million loss. The EPS turnaround from a $0.07 loss to $0.01 profit marks a significant milestone in Samsara’s financial recovery.

Post-Earnings Price Action Review

The stock edged down 1.75% on the latest trading day but surged 15.30% weekly and 14.93% month-to-date. A strategy of buying IOT on earnings beats and holding for 30 days yielded 36.81% returns, underperforming the 45.59% benchmark. While the Sharpe ratio of 0.13 indicated reasonable risk-adjusted returns, the maximum drawdown of 0.00% highlighted no downside risk during the backtest period.

Additional News

CFO Dominic Phillips sold 18,348 shares ($845.7K) via a prearranged plan, reducing his direct holdings to 683,425 shares. Institutional investors, including Jump Financial LLC, increased stakes by 3,339.5% in Q2, owning 264,600 shares valued at $10.53 million. Analysts upgraded Samsara to “Buy” or “Outperform,” with a $50.50 average price target, citing strong non-GAAP profitability and 29.4% annual recurring revenue growth.

CEO Commentary

While no transcript was provided, the CEO likely emphasized the 29.2% revenue growth and strategic investments in IoT and cloud solutions. Leadership remains cautious amid unpredictable sales cycles for large deals, which could introduce variability in future results.

Guidance

The company set FY 2026 EPS guidance at $0.50 and Q4 2026 at $0.12–$0.13. Analysts project -0.3 EPS for the current fiscal year, reflecting ongoing challenges in achieving consistent profitability.

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