Samsara's Q4 Results Show Strong EPS and Revenue Growth

Samsara (NYSE:IOT) reports impressive Q4 results, exceeding EPS and revenue forecasts. The company's EPS soared by 175% and revenue grew by 25.3%, indicating a solid financial performance that may positively impact its stock prices in the market.

Date: 07-03-2025

AI Rating: 8

Financial Metrics
Samsara reported a non-GAAP earnings per share (EPS) of $0.11, which is a significant outperformance compared to analysts' estimates of $0.07 and management’s guidance range of $0.07 to $0.08. This indicates a substantial positive trend in profitability, with a growth rate of 175% from the prior year, where EPS was $0.04.

Revenue Growth
The company's revenue for fiscal Q4 was $346.3 million, exceeding the Wall Street expectations of $335 million. This also marks a 25.3% increase from $276.3 million in Q4 of the prior year, showcasing the company's ability to grow its top line effectively.

Profit Margins
Samsara achieved a non-GAAP operating margin of 16% for the quarter, a remarkable improvement from just 5% in the previous year. This 1,100 basis points increase indicates enhanced operational efficiency and profitability on an operational level.

Annual Recurring Revenue
The annual recurring revenue (ARR) of $1.458 billion, representing a 32.3% increase from last year's $1.102 billion, emphasizes the company's strong position in retaining and growing its customer base.

Outlook
Looking ahead, Samsara projects revenues for the current quarter between $350 million and $352 million, reflecting a moderate outlook compared to its previous growth rates. The guidance expects a less aggressive growth pace, projecting a 22% to 23% rise in revenue for fiscal 2026, which is a slowdown from the impressive 33% growth rate in fiscal 2025. This cautious outlook might influence investor sentiment as it suggests a potential softening of growth momentum in the upcoming fiscal period.

Stocks: IOT