Samsara Stock Soars on Earnings. Investments Made Years Ago Are Paying Off, CEO Says.

The Internet of Things stock jumped into positive territory for 2025. (Courtesy Samsara)

Key Points

• Samsara reported adjusted earnings of 15 cents per share and revenue of $416 million, exceeding analyst forecasts.
• Annual recurring revenue (ARR) increased by 29% from the prior year, with 219 new customers having over $100,000 in ARR.
• Samsara’s stock slipped in after-hours trading but rose by double digits on Friday.

Shares of Samsara took off on Friday. The company’s CEO says the investments the Internet of Things company made years ago are paying off with a wave of new customers.

Samsara, whose technology helps connect physical operations like construction and shipping, posted adjusted earnings of 15 cents a share for its fiscal third quarter, ended Nov. 1. Analysts had forecast a profit of 12 cents a share, per FactSet.

Revenue totaled $416 million, up 29% from the year-ago period and above Wall Street’s call for $399.3 million. Annual recurring revenue, or ARR, also grew 29% from last year, the company said.

Samsara stock jumped 14% to $46.54 on Friday. The gain brought shares into the black in 2025.

Samsara now expects adjusted per-share earnings of 50 cents to 51 cents on 28% revenue growth in 2026. The company had previously forecast earnings of 45 cents to 47 cents a share on 26% growth.

Friday’s performance boosts a stock that has struggled to recover from a sharp selloff earlier this year. Shares tumbled 44% between Feb. 18, when the stock hit its record high, and March 10, a few days after the company’s 2025 fourth-quarter earnings missed expectations.

A solid earnings report in September, buoyed by a record number of customers with at least $1 million in ARR, helped pare some of the stock’s losses. Samsara matched that record this past quarter, adding another 17 such customers. It also added a record 219 customers with ARR over $100,000.

The large enterprise wins are down to investments Samsara made in areas like product features and its sales team two years ago, CEO Sanjit Biswas told Barron’s in an interview Friday.

“Building for the long term is the kind of core idea for us,” Biswas said.

Samsara signed clients like the State of New York, engineering company UES, and one of North America’s largest school bus operators in the third quarter. Many of its large customers could contribute $10 million ARR each in the future, Biswas said. The vast majority of them adopt multiple Samsara products in their initial contracts.

Enterprise software stocks have struggled in 2025, with investors wary of artificial intelligence tools eating into the market for per-seat software platforms. Samsara stock, too, has lagged behind the broader market. Biswas thinks the company’s customer mix insulates it from these risks. The AI boom hasn’t reduced the importance of physical operations, he said.

“I do get the sense there’s quite a bit of anxiety around knowledge work, and seats, and how many licenses of a certain enterprise software will people buy,” Biswas told Barron’s. “We’re tied to, like, how many bulldozers are out there running around.”

Write to Nate Wolf at nate.wolf@barrons.com