Samsara, Inc. (NYSE: IOT) saw its stock price surge 10.49% in a 24-hour period following the release of its impressive second-quarter fiscal year 2026 financial results. The connected operations cloud provider significantly outperformed market expectations, demonstrating robust growth and an expanding customer base.

The company reported adjusted earnings per share of $0.12, handily beating the analyst consensus estimate of $0.07. Revenue for the quarter reached $391.5 million, surpassing the expected $372.2 million and marking a 30.4% year-over-year increase. Samsara's gross profit stood at $301 million, with an adjusted gross margin of 78% and an adjusted operating margin of 15%.

Samsara's strong performance was underpinned by substantial customer growth and platform expansion. The company reported a 30% year-over-year increase in Annual Recurring Revenue (ARR), reaching $1.6 billion. Notably, Samsara added a record 17 customers each contributing over $1 million in ARR during the quarter, bringing the total number of customers with ARR over $100,000 to 2,771. CEO Sanjit Biswas attributed this growth to increased demand driven by the rise of the AI-driven economy.

Looking ahead, Samsara provided an optimistic outlook for the third quarter and the full fiscal year. The company raised its full-year revenue guidance to between $1.57 billion and $1.58 billion, up from the previous forecast of $1.55 billion to $1.56 billion. Additionally, Samsara increased its adjusted earnings per share guidance for the full year to $0.45 to $0.47, up from the prior estimate of $0.39 to $0.41.

The market responded enthusiastically to Samsara's results and improved outlook, driving the stock price higher. This significant movement reflects investors' growing confidence in Samsara's potential in the connected operations market and its ability to capitalize on the increasing demand for AI-driven solutions in physical operations.