- ARR Growth: Annual Recurring Revenue (ARR) reached $1.75 billion, growing 29% YoY, with 219 $100k+ ARR customers added, a quarterly record.
- Financial Performance: Q3 revenue hit $416 million (29% YoY growth), non-GAAP operating margin hit a record 19%, and free cash flow margin rose to 13% (up 4% YoY).
- Product Expansion: New AI-powered features drove 20% of net new ACV in Q3, up from 8% in Q2, with Asset Tags ARR surging over 400%.
- Customer Momentum: 17 $1 million+ ARR customers added, tying a quarterly record, and 37% accident reduction in fleets using dual AI dash cameras.
- International Growth: Hosted Go Beyond events in London and Mexico City, announced UK partnership with Allianz, and guided FY26 revenue growth of 28% YoY to $1.595B–$1.597B.
Customer Growth and Expansion
The company added 219 customers with $100,000-plus in Annual Recurring Revenue (ARR), a quarterly record, and 17 $1 million-plus ARR customers, tying a quarterly record. Large enterprises are quickly digitizing their operations, and Samsara has become their platform of choice due to its unified data system, broad multi-application platform, and AI-driven insights. The company's international presence is also expanding, with events in London and Mexico City, and a new partnership with Allianz in the UK.
Product Innovation and AI-Driven Insights
Samsara recently launched new AI-powered coaching features, including Automated Coaching, Group Coaching, and Workflow Automations, to help customers scale their coaching programs. The company's AI-driven insights are providing significant results, including a 37% reduction in accidents after six months and a 73% reduction after 30 months for fleets using dual-facing AI dash cameras and driver coaching.
Guidance and Outlook
Guidance for Q4 includes revenue between $421 million and $423 million, representing 22% year-over-year growth, and non-GAAP operating margin of 16%. For full-year FY '26, revenue is expected to be between $1.595 billion and $1.597 billion, representing 28% year-over-year growth. Analysts estimate next year's revenue growth at 28.7%.
Valuation and Metrics
With a P/S Ratio of 16.94 and EV/EBITDA of -2375.18, the market is pricing in significant growth expectations. The company's ROE is -3.59%, and ROIC is -6.22%. The current valuation multiples suggest that the market is expecting strong growth, which is in line with the company's guidance and historical performance. As the company continues to expand its customer base, invest in product innovation, and drive AI-driven insights, it remains to be seen whether it can sustain its growth momentum and meet market expectations.