Samsara delivered a quarter that exceeded Wall Street’s expectations, with revenue growth fueled by continued expansion among large enterprise customers and increasing multiproduct adoption. Management highlighted that momentum was particularly strong in segments such as construction, public sector, and international markets, where the company saw accelerating growth. CEO Sanjit Biswas attributed this to Samsara’s ability to unify data and deliver actionable insights for complex operations, noting, “Large enterprises are quickly digitizing their operations, and they’re demanding a partner that delivers scale and performance.”
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Samsara (IOT) Q3 CY2025 Highlights:
- Revenue: $416 million vs analyst estimates of $399.4 million (29.2% year-on-year growth, 4.1% beat)
- Adjusted EPS: $0.15 vs analyst estimates of $0.12 (26.4% beat)
- Adjusted Operating Income: $79.79 million vs analyst estimates of $59.41 million (19.2% margin, 34.3% beat)
- Revenue Guidance for Q4 CY2025 is $422 million at the midpoint, roughly in line with what analysts were expecting
- Management raised its full-year Adjusted EPS guidance to $0.51 at the midpoint, a 9.8% increase
- Operating Margin: -0.4%, up from -14.7% in the same quarter last year
- Customers: 2,990 customers paying more than $100,000 annually
- Annual Recurring Revenue: $1.75 billion vs analyst estimates of $1.73 billion (29.4% year-on-year growth, 1.1% beat)
- Billings: $430.2 million at quarter end, up 26.9% year on year
- Market Capitalization: $25.98 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Samsara’s Q3 Earnings Call
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Michael Turrin (Wells Fargo) asked about the drivers of large customer momentum. CEO Sanjit Biswas pointed to investments in product scalability and customized go-to-market strategies for complex organizations, emphasizing the importance of data management and tailored solutions.
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Aleksandr Zukin (Wolfe Research) questioned the surge in new product adoption. Biswas noted balanced uptake across several products, not just one, while CFO Dominic Phillips explained that phased rollouts and wider multiproduct deals helped drive the increase.
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Keith Weiss (Morgan Stanley) probed the expansion opportunity within existing customers. Phillips said most net new contract value comes from expansions and multiproduct adoption, but declined to provide a simple rule of thumb for potential customer value uplift.
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Matthew Bullock (BofA) asked about the rollout pace of large deals like First Student. Phillips explained that deployment varies by customer, with large contracts typically implemented in phases over several quarters, depending on customer readiness.
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Derrick Wood (TD Cowen) inquired about the impact of new tariffs on customer demand. Biswas responded that tariffs were not significantly changing customer behavior, but there was growing interest in extending asset lifespans through better maintenance—a trend supported by Samsara’s Connected Maintenance product.
Catalysts in Upcoming Quarters
As we look to the next few quarters, our team will monitor (1) the pace of multiproduct adoption and upsell within Samsara’s expanding enterprise customer base, (2) progress in international market penetration, especially in Europe and Latin America, and (3) the contribution of new and emerging AI-powered products to both revenue growth and customer retention. Additionally, the timing and size of large enterprise contracts will be a key indicator of consistency in top-line growth.
Samsara currently trades at $44.25, up from $40.73 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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