By Nate Wolf

Shares of Samsara were rising sharply Friday after the "internet of things" company beat earnings and revenue expectations for its fiscal second quarter and notched several major customer wins.

The company, which provides technology to connect physical operations like construction and transportation, posted adjusted earnings of 12 cents a share, surpassing analysts' estimates of 7 cents. Revenue totaled $391.5 million, up 30% from the prior year and above Wall Street's call for $372.2 million. Annual recurring revenue, or ARR, came in at $1.6 billion, also up 30% from last year.

Samsara shares were up 14% to $40.91 on Friday.

The stock closed down 18% for the year Thursday, in part due to delayed sales cycles as tariffs altered customer priorities. But each of the large impacted transactions closed in the second quarter and Samsara didn't experience further tariff-related issues, CEO Sanjit Biswas told Barron's. With tariffs in place, customers are trying to find efficiencies and extend the life of big-ticket assets.

"Fundamentally, our products are helping these companies be more efficient," Biswas added.

Securing major deals from large enterprise customers is a focus for the company, Biswas said. Samsara added a single-quarter record of 17 customers with $1 million or more in ARR. It also announced significant deals with companies like Alaska Airlines and SRM Concrete, though it declined to reveal exact order sizes.

"The strategy is to really understand large, complex operations," Biswas told Barron's, adding that Samsara emphasizes bringing a comprehensive suite of products to customers.

Samsara now expects revenue growth of 26% for the fiscal year, up from a previous forecast of 24%, with adjusted earnings of 45 cents to 47 cents a share, compared with a previous range of 39 cents to 41 cents.

The stock also got a boost from Craig-Hallum Capital Group, which upgraded Samsara to Buy from Hold and lifted its price target to $48 from $42, citing its long-term growth opportunity and the end of the spring tariff pause.

"All-in, we continue to see value in IOT's growth story as they outpace competitors in nearly all business segments," wrote Craig-Hallum's Anthony Stoss in a research note Friday. "We believe partnership integrations and AI utilization will drive continued customer growth moving forward."

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

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September 05, 2025 13:01 ET (17:01 GMT)

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