Samsara Inc., a prominent player in the Internet of Things (IoT) space, announced impressive second-quarter financial results on Thursday, surpassing market expectations. The company reported earnings of 5 cents per share, significantly exceeding the analyst consensus estimate of 1 cent. Revenue for the quarter reached $300.20 million, outperforming the anticipated $289.54 million. This strong performance reflects Samsara’s continued growth and efficiency.
“We achieved another strong quarter of durable and efficient growth at a greater scale. Q2 ended at $1.264 billion in ARR, growing 36% year-over-year, and at a quarterly record non-GAAP operating margin,” stated Sanjit Biswas, co-founder and CEO of Samsara. This robust performance also fueled the company’s optimism for the future.
Looking ahead, Samsara projects third-quarter revenue to fall between $309 million and $311 million. The company anticipates third-quarter adjusted earnings to range from 3 to 4 cents per share.
Further solidifying its positive outlook, Samsara revised its fiscal year 2025 guidance upward. The company now projects full-year revenue to land between $1.224 billion and $1.228 billion, surpassing the previous estimate of $1.213 billion. In addition, Samsara expects full-year adjusted earnings to range from 16 to 18 cents per share, exceeding the prior estimate of 13 cents per share.
The positive financial news was well-received by the market, with Samsara shares gaining 0.2% to close at $38.75 on Thursday.
Following the earnings announcement, several analysts adjusted their price targets on Samsara stock, reflecting the bullish sentiment. B of A Securities analyst Matt Bullock maintained a Buy rating and raised the price target from $45 to $47. BMO Capital analyst Daniel Jester kept a Market Perform rating while increasing the price target from $40 to $44. Piper Sandler analyst James Fish maintained a Neutral rating but also raised the price target from $36 to $40. Evercore ISI Group analyst Kirk Materne kept an In-Line rating and raised the price target from $40 to $42. RBC Capital analyst Matthew Hedberg kept an Outperform rating and boosted the price target from $47 to $49. Finally, Wells Fargo analyst Michael Turrin maintained an Overweight rating and raised the price target from $42 to $46.
Overall, Samsara’s strong performance and raised guidance have further solidified its position as a leading force in the IoT industry. With a positive outlook and analyst support, Samsara appears poised for continued growth in the coming year.
