Samsara Q4 FY2026 Earnings Call - Growth Accelerates at Scale as AI, Asset Tags and Large Deals Drive ARR to $1.9B

Derrick Wood, Analyst, TD Cowen2: Good afternoon, welcome to Samsara’s fourth quarter fiscal 2026 earnings call. I’m Mike Chang, Samsara’s Senior Vice President of Finance. Joining me today are Samsara Chief Executive Officer and Co-founder, Sanjit Biswas, and our Chief Financial Officer, Dominic Phillips. In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation, and SEC filings on our investor relations website at investors.samsara.com. The matters we’ll discuss today include forward-looking statements. Actual results may differ materially from those contained in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings.

Any forward-looking statements that we make on this call are based on assumptions as of today, March 5, 2026, and we undertake no obligation to update these statements as a result of new information or future events unless required by law. During today’s call, we will discuss our fourth quarter fiscal 2026 financial results. We’d like to point out that the company reports non-GAAP results in addition to and not as a substitute for or superior to financial measures calculated in accordance with GAAP. We also report both actual and constant currency growth rates for certain metrics. On the call, we only provide constant currency commentary when there is a difference. Reconciliations of GAAP to non-GAAP financial measures and additional information on constant currency are provided in our press release and investor presentation.

We’ll make opening remarks, dive into highlights for the quarter, then open the call up for Q&A. With that, I’ll hand over the call over to Sanjit.

Derrick Wood, Analyst, TD Cowen5: Thanks, Mike. Thank you everyone for joining us today. FY 2026 was an outstanding year of durable and efficient growth. We ended the year with $1.9 billion in ARR, growing 30% year-over-year. Our $432 million of net new ARR drove this performance, growing 21% year-over-year and demonstrating our ability to accelerate growth even as we operate at much larger scale. Our momentum is strongest with our largest customers. We ended the year with $1.2 billion of ARR from our 100K+ ARR customers, an increase of 37% year-over-year and our second consecutive quarter of sequential acceleration. As we look back on FY 2026, it’s clear we are uniquely positioned to help digitize the world of physical operations.

We help these industries transform through a combination of hardware devices, cloud connectivity, deep AI, and data integrations. At the heart of our competitive advantage is our proprietary data asset, information that simply isn’t found on the Internet. This includes everything from dashcam imagery captured across hundreds of millions of miles of roads daily to specific maintenance inspection workflows and service routes. We now have more than 25 trillion data points flowing through our platform every year. This data provides us with a unique moat that fuels a powerful data network effect. As we add more customers and assets, our AI models become more insightful for everyone on the platform. This creates a compounding advantage that is difficult for others to replicate. Since our founding in 2015, we’ve worked towards a vision of fully digitized operations. We see this transformation occurring in three distinct phases.

Phase one, connecting the world’s physical operations. Phase two, analyzing the data to surface actionable operational insights. Phase three, automating entire workflows with proprietary AI agents. Let’s start with phase one. Our customers are service businesses that rely on physical assets and labor and require a wide range of equipment for their operations. This includes light-duty vehicles, school buses, yellow iron construction equipment, trailers, tools, and even dumpsters. On average, our largest customers spend around 80% of their revenue on these types of assets and workers. By connecting their operations to the cloud using IoT hardware, we’re building a massive and proprietary data asset that represents the physical world.

This includes real-time data such as video, GPS locations, sensor readings, and diagnostics codes, which our customers use to gain operational benefits, including protecting frontline workers from false claims and liability with HD video evidence, delivering best-in-class customer service with live locations to provide accurate ETAs, and ensuring compliance with asset and worker monitoring. While customers can immediately achieve clear and fast ROI from connecting their operations to the cloud, this digitization is still in its early stages. This is due to the significant change management required to digitize revenue-generating assets. We believe the multi-decade effort to connect the world’s physical operations creates a durable, long-term growth opportunity for our business. Once we’ve collected all the data, our customers enter phase 2. We train purpose-built AI to surface deeper cross-functional insights that were previously unattainable.

For the first time, our customers can see the direct correlation between worker behavior and long-term vehicle health, how specific service routes impact both fuel efficiency and customer satisfaction, and how real-time coaching helps prevent accidents and keep their workers safe. By applying AI to this operational data, our customers are using actionable insights to transform their operations. This includes identifying safety risks through 40-plus AI detections like drowsiness, risky weather, and passenger left behind and correlating that risk with the worker’s broader safety record, simplifying compliance tracking by automating the verification of worker and asset qualifications, and minimizing fuel spend through coaching driving behavior and intelligently suggesting the most cost-effective gas stations along their routes. Our AI analysis can now go even deeper by expanding the scope beyond a single customer, drawing actionable insights from analyzing our network of tens of thousands of customers collectively.

For example, we can predict asset breakdowns by analyzing sensor data and comparing it against data from tens of thousands of assets of the identical make, model, and year to understand the average time to failure. Analyze weather risk by comparing National Weather Service data with actual camera footage from Samsara’s network of millions of devices, and optimize operational performance by comparing an organization’s safety records, safety scores, utilization rates, and fuel efficiency against anonymized data from industry peers to identify specific areas for improvement. These actionable insights do more than just power dashboards. They build a high-velocity, high-quality data foundation required for automation. You cannot effectively automate what you’ve not first unified and understood. Next, our customers enter phase 3. Advances in AI reasoning capabilities allow us to build AI agents that take action and automate entire workflows.

We’re shifting the paradigm from providing insights in phase two, which require a human to interpret and act, to delivering automated outcomes in phase three. These agents will supercharge our customers’ operations, giving them virtual teammates to completely transform their approach to safety, efficiency, and sustainability. As part of this, we’re excited to announce our very first AI agent, the AI Safety Coach. It comprehends risk by self-reviewing data sources such as safety event videos, worker safety records, and weather conditions. This depth of understanding allows the agent to deliver automated safety outcomes, providing real-time voice coaching in the cab and personalized end of week coaching videos for workers. It even dynamically adjusts safety alerts based on risky conditions, such as increasing following distances when it begins to snow.

Beyond safety, our roadmap includes a suite of specialized AI agents designed to act as force multipliers for back office teams. We’re developing additional AI agents to assist with compliance, maintenance, and dispatching. By automating these high-frequency complex tasks, we’re enabling our customers to scale their operations without the traditional linear increase in administrative costs. To realize the full potential of these 3 phases, technology must be adopted by the people who power the business every day. Today, the majority of physical operations are moving into phase 1 or phase 2 of their digital transformation, which requires installation of our hardware and change management with their frontline workers. From there, the transition to phase 3 can happen much faster as the core parts of their operation are digitized and prepared for AI automation. The progress we’ve made in digitizing the world’s physical operations is directly translating to our results.

We partner with many of the leading physical operations organizations, including 7 of the top 10 food service companies, 7 of the top 10 waste management companies, and 5 of the top 10 wholesale and retail companies. In Q4, we added 204 new 100K+ ARR customers and ended FY26 with 3,194 100K+ ARR customers. Our large customer momentum is laying the foundation for durable growth as these organizations adopt more products across our platform to achieve additional ROI. Large customer wins for the quarter include Southern California Edison, Groundworks, and Harris County in Texas. I’d like to share 2 examples of how we’re expanding with our customers. The first is with one of North America’s leading freight transportation companies operating a rail network of more than 30,000 route miles.

Since becoming a customer in 2021, they’ve used our video-based safety and telematics products on their freight hostlers to build a world-class safety program. This resulted in a 90% drop in safety events and a 97% drop in distracted driving. In Q4, we expanded our partnership to include AI Multicam as they are growing their safety program. They were a top 10 win for the quarter. We estimate they will save over $12 million per year through fewer and less severe accidents, lower maintenance spend, and reduced fuel consumption. Another example is with Estes, which was also a top 10 win for the quarter. Estes is the largest privately held freight transportation company in North America. They operate over 43,000 trailers and 10,500 tractors to move 70 million pounds of freight daily.

After initially partnering with Samsara for video-based safety and telematics, they expanded in Q4 to add equipment monitoring, Asset Tags, and Connected Asset Maintenance, further unifying their operations on our platform. Estes is deploying Asset Gateways across their trailer fleet to gain real-time visibility and safety insights. They’re using Asset Tags to track thousands of smaller mission-critical assets, including dollies, forklifts, and ramps that are essential to their daily dock operations. They’re also using Connected Asset Maintenance to detect issues early and reduce unplanned downtime and streamline shop operations with integrated warranty and inventory management. We’re proud of the impact we’re making together with our customers. We introduced the Asset Tag 18 months ago, and our customers are rapidly adopting them to get better visibility across their operations, from heavy-duty assets to smaller tools and equipment.

This is only made possible by our industry-leading industrial-grade Samsara Network, which continues to get bigger and better. In just the last two years, we doubled our network density and can now detect Asset Tags in near real-time, providing visibility at scale that can’t be replicated. We are further strengthening our network through an integration with Hubble’s terrestrial network of more than 90 million consumer smartphones. This builds on Samsara’s strong presence on roads, job sites, and in residential areas by extending visibility inside buildings. To continue the momentum of our Asset Tags, we are introducing the all-new Asset Tag XS, a form factor five times smaller than our original Asset Tag. It is purpose-built for more compact, high-value handheld tools and specialized equipment such as gas meters and IV pumps.

Equipment managers can now mix and match Asset Tags based on the size and shape of their assets. Finally, we also introduced the latest generation of our Asset Tag. It has six years of maintenance-free battery life, a 50% increase over the previous generation, and improved precision finding and range. We’re excited to see the growing impact that Asset Tags are having on our customers’ operations. As we close out a fantastic FY 2026, I want to thank our customers for their continued partnership and our team for their relentless focus on innovation. We’re in the early innings of a multi-decade opportunity to transform the physical world, and I’ve never been more excited about the road ahead. We also wanted to share that our Chief Product Officer, Kiren Sekar, has retired.

Our CTO and Co-founder, John Bicket, and SVP of Product Management, Johan Land, will take over leadership of our engineering and product organizations respectively. We thank Kieran for his outsized impact and customer focus, which were instrumental in growing Samsara from an early-stage idea into a multi-billion-dollar business. Lastly, we’re excited to announce that we will be hosting our customer conference, Beyond 2026, from June 23rd to 26th in Las Vegas. We’ll also be hosting an Investor Day as part of the event. Beyond is our opportunity to bring together leaders from across industries to discuss the state of physical operations and new ways to deliver value through digitization. We hope you’ll join us and are looking forward to seeing many of you there. I’ll now hand it over to Dominic to go over the financial highlights for the quarter.

Dominic Phillips, Chief Financial Officer, Samsara: Thank you, Sanjit. Q4 was another quarter of accelerating growth and improved operating leverage. The quarter was highlighted by strong performance across several key metrics, including 31% year-over-year Net New ARR growth in constant currency, the third consecutive quarter of sequential acceleration, and the highest Net New ARR growth in the past 8 quarters, leading to 30% total ARR growth, also accelerating sequentially at a larger scale. 37% year-over-year ARR growth for 100K-plus customers, the second consecutive quarter of sequential acceleration at a larger scale, and 56% year-over-year ARR growth for $1 million-plus customers, the third consecutive quarter of sequential acceleration at a larger scale. A quarterly record 13 $1 million-plus net new ACV transactions, 23% of net new ACV from emerging products launched over the past 2 years, and achieving our second consecutive quarter of GAAP profitability.

More broadly, our durable and increasingly efficient growth demonstrates the large yet still early opportunity for digital transformation across physical operations. Looking ahead, we believe we’re well-positioned to deliver durable growth and create long-term shareholder value for several key reasons. The first is that we have a unique defensible data advantage. By instrumenting physical assets with IoT hardware, we generate a large and growing proprietary data asset that cannot be easily replicated. Second, we’re leveraging this proprietary data to power a closed loop of intelligence and action. We use AI to surface operational insights and deploy AI agents to take action on those insights and automate workflows across the platform. This drives stronger customer engagement and expands the long-term value of our platform. Third, we have exposure to secular growth in physical infrastructure.

Our business model scales with physical assets rather than headcount or knowledge workers and aligns us with end markets benefiting from major initiatives such as the global AI infrastructure build-out. The stock price performance of our top 100 public customers is up more than 30% over the past year. Fourth, our products offer a differentiated value prop in mission-critical workflows, delivering fast, tangible ROI, such as accident reduction, fuel and maintenance savings, and improved asset utilization, making us essential to our customers’ operations. Lastly, we’re targeting the large, less discretionary operations budget, which represents approximately 80% of our customers’ revenue on average. Because we help them optimize this significant cost base, we have a large opportunity to drive customer impact and long-term growth. Okay, now turning to our results.

Q4 and FY 2026 ending ARR was $1.9 billion, an increase of 30% year-over-year, accelerating sequentially at a larger scale. Within that, we added $145 million of net new ARR in Q4, an increase of 33% year-over-year or 31% in constant currency, resulting in the third consecutive quarter of accelerating sequential growth and the highest net new ARR growth rate in the past eight quarters. Our overall net new ARR in FY 2026 was $432 million, an increase of 21% year-over-year, which also accelerated year-over-year at a larger scale. FY 2026 revenue was $1.6 billion, an increase of 30% year-over-year or 29% in constant currency. Several factors drove our strong top-line performance in Q4.

First, large customer momentum is leading to higher growth at scale. In terms of large deals, we signed a quarterly record 13 $1 million-plus net new ACV transactions in Q4. This reflects the success of our R&D and go-to-market investments to support these larger customer opportunities. In terms of large customers, we ended Q4 with 3,194 100K-plus ARR customers, including a quarterly increase of 204, our second-highest quarter ever. ARR from 100K-plus customers was $1.2 billion, increasing 37% year-over-year, resulting in the second consecutive quarter of sequential acceleration at a larger scale. 100K-plus customers represent 61% of total ARR, up from 58% one year ago and 56% two years ago.

Additionally, ARR from $1 million+ customers increased 56% year-over-year, representing the 3rd consecutive quarter of sequential acceleration at a larger scale. Consistently over time, our ARR mix from large customers has increased while ARR mix from smaller customers has decreased. To better reflect this trend and align with our capital allocation strategy, we’re refreshing our definition of core customers to include customers with more than $25K in ARR versus $10K previously. At the end of Q4, $25K+ customers contributed 85% of total ARR, up from 83% 1 year ago and 81% 2 years ago. We expect this trend to continue and believe this update also helps investors better understand our focus on larger customers versus other competitors in the space.

Second, our customers are increasingly using Samsara as their mission-critical system of action by subscribing to multiple applications on a single unified platform. 96% of our 100K+ ARR customers subscribe to 2 or more products, and 69% subscribe to 3 or more. In Q4, 9 of the top 10 net new ACV deals included 2 or more products. 8 of the top 10 included 3 or more products, and 6 of the top 10 included 4 or more products. In Q4, we had a large win with one of the Midwest’s largest farmer-owned co-ops. Following rapid M&A-driven growth that left data fragmented across systems, they consolidated on Samsara. This customer leverages Route Planning to digitally access daily orders, Commercial Navigation for safe, compliant, vehicle-aware turn-by-turn directions, and Connected Workflows to streamline proof of delivery and signatures.

Additionally, telematics and video-based safety provide real-time visibility to enable proactive protection of drivers and reduce risk. In a pilot, they achieved a 65% reduction in safety events, an 85% reduction in speeding events, and a 45% reduction in idling time. Strong multi-product adoption like this helped us achieve our target dollar-based net retention rate of approximately 115% for core customers, both for our prior definition of 10K+ ARR customers and our updated definition of 25K+ ARR customers. Third, we demonstrated strong execution across several frontiers. In terms of emerging products, 23% of net new ACV in Q4 came from new products launched over the past 2 years, including AI Multicam, Asset Maintenance, Asset Tags, Commercial Navigation, qualifications, Routing, training, and Workflows. Emerging products now contribute more than $100 million in ARR.

Eight of the top 10 net new ACV transactions in Q4 included an emerging product. 58 transactions in Q4 included more than $100K in emerging product net new ACV. Asset Tags ending ARR more than tripled year-over-year. In Q4, we signed our largest-ever Asset Tags deal with Total Safety, a leading provider of industrial safety services with over 250,000 assets in the U.S. Total Safety is deploying Asset Tags to track critical high-value safety equipment, such as breathing air tanks, eye wash stations, and small tools to ensure asset visibility critical to their operations. By digitizing their inventory, they are increasing equipment recovery and helping their customers eliminate the high cost of lost assets. In terms of end markets, we saw strong momentum across construction, wholesale and retail trade, and public sector.

Construction contributed the highest net new ACV mix of all industries for the 10th consecutive quarter and had its highest net new ACV growth in the last seven quarters. Wholesale and retail trade was our second-largest vertical in Q4 and contributed its highest net new ACV mix in the last three years. Public sector FY26 net new ACV growth accelerated for the third consecutive year, including Q4 wins with the State of New York and Harris County, the third-largest county in the U.S. In terms of international, 15% of net new ACV came from non-U.S. geographies. Europe ARR growth accelerated for the fourth straight quarter, led by our largest-ever European net new ACV deal with Dawsongroup, the U.K.’s largest independent asset rental, leasing, and contract hire company. Canada had its highest year-over-year net new ACV growth in the last 10 quarters.

In addition to driving strong top-line growth, we continued to deliver operating leverage across our business as we scale. In FY 2026, non-GAAP gross margin was 78%, up 1 percentage point year over year. Non-GAAP operating margin was 17%, up 8 percentage points from 1 year ago. Free cash flow margin was 13% in FY 2026, up 4 percentage points year over year. Now turning to Q1 and FY 2027 guidance based on FX rates as of January 31st. Our guidance philosophy remains the same and is de-risked for potential downside scenarios. For Q1, we expect revenue to be between $454 million and $456 million, representing 24% year-over-year growth or 22%-23% growth in constant currency. Non-GAAP operating margin to be 15% and non-GAAP EPS to be between $0.12 and $0.13.

For full year FY 2027, we expect revenue to be between $1.965 billion and $1.975 billion, representing 21%-22% year-over-year growth or 21% growth in constant currency. non-GAAP operating margin to be 19%, non-GAAP EPS to be between $0.65 and $0.69, and we also expect to be GAAP profitable for full year FY 2027. Finally, please see the additional modeling notes in our shareholder letter. To wrap up, in Q4 and in FY 2026, we delivered accelerating growth at scale while expanding operating leverage across the board. Looking ahead, we believe we’re well-positioned to sustain durable and efficient growth because we use hardware to generate a unique defensible data asset that we harness with AI to surface operational insights and automatically take action to drive more customer value.

We are aligned with the secular growth in physical operations end markets that are benefiting from major initiatives, such as the global AI infrastructure build-out, and we deliver large, tangible customer ROI with fast payback periods. We look forward to building on this momentum as we help our customers operate more safely, efficiently, and sustainably at a greater scale.

With that, I’ll hand it over to Mike to moderate Q&A.

Derrick Wood, Analyst, TD Cowen2: Thanks, Dominic. We will now open the line up for questions. When it’s your turn, please limit your questions to one main question and one follow-up question. The first question today comes from Matthew Hedberg with RBC, followed by Keith Weiss with Morgan Stanley.

Derrick Wood, Analyst, TD Cowen0: Hey, guys.

Derrick Wood, Analyst, TD Cowen2: Yes

Derrick Wood, Analyst, TD Cowen0: Can you hear me? Great. Thanks again, and great job this quarter. You know, a lot of positives to pick through here. You know, the emerging product success was certainly a standout, reaching 2 really significant milestones. I guess, you know, as you look to the future and by the way, I think you guys outlined a really, really compelling reason why data is at the core of Samsara and why that is extremely defensive and in fact, offensive in an AI environment. Can you talk about though, you know, where you’re seeing some of the best adoption rates for some of these emerging products? Is it across all your customers? Is it some of your larger customers, particular verticals? Any, any sense for just kinda how those emerging products are distributed?

Dominic Phillips, Chief Financial Officer, Samsara: Hey, Matt, this is Sanjay. I’ll take that one. I would say we are seeing very strong momentum, especially with large customers, because they have the most complex physical operations, thousands, often tens of thousands of frontline workers, and similar, probably larger number of assets. When we introduce new technologies like Commercial Navigation, maintenance, training, they’re very well-received because they know immediately how to put that technology to work. I would say if I had to choose a pattern, it would be among these larger customers where they’re set up to absorb these new products.

Derrick Wood, Analyst, TD Cowen2: Great. Okay, the next question comes from Keith Weiss with Morgan Stanley, followed by Alex Zukin with Wolfe.

Keith Weiss, Analyst, Morgan Stanley: Excellent. Thank you guys for taking the question, congratulations on a really outstanding quarter and end to your year. Well, really two questions I wanna ask, one more tactical, one more strategic. On the more tactical side of the equation, the acceleration that we’ve seen over the past couple of quarters in Net New ARR, is it too simple to say that this is sort of Asset Tags and that new solution ramping up within the product portfolio, or is there, like, a broader set of drivers that are behind that acceleration? On the more strategic side, coming out of the Morgan Stanley TMT conference, we’ve been talking a lot about proprietary data, one of the debates that emerged is how the value of data sustains over time.

I’d love to hear your guys’ view on it in terms of the relative value of the data when it’s brand new and it’s just coming off of the devices versus how much value it retains as it becomes older and older and becomes part of that, like, bigger data set that you have over time. Thank you so much.

Dominic Phillips, Chief Financial Officer, Samsara: Hey, Keith, this is Dominic. I’ll go for the first one, and then Sanjay can take the second one. I think the acceleration, the net new ARR acceleration over the last three quarters has been much broader than something just simply as Asset Tags. I think broadly as a bucket, the emerging products have definitely been big contributors, so going from 8% of the net new ACV mix in Q2 to 20% in Q3 and then 23% in Q4, Asset Tags has been important within that. Once again, we didn’t see one product within the emerging products driving, you know, more than 50% of that contribution. I think it’s been a lot of large customer momentum and success. Again, a quarterly record 13 $1 million-plus net new ACV transactions.

Our second highest quarter ever of 100K-plus adds. You know, we’re seeing good momentum internationally, and then in specific verticals, again, things like construction and wholesale and retail and public sector this quarter were all strong. Emerging products definitely playing a role, but it’s been the strength and the growth has been much more broad than that.

Derrick Wood, Analyst, TD Cowen0: Keith, on the proprietary data angle, we think there’s a lot of value in the sort of accumulation and really the data asset that builds up over time. I’ll give you one or two just kinda concrete examples. Maintenance is actually one that, our customers have really started taking to. We have a tremendous amount of information about what happens with a specific make, model, year of a truck. For example, if you have a 2020 Freightliner Cascadia, how does it wear over time? What have others seen? Where does it start to break down? Where does maintenance costs go up? That is, from the accumulation of a lot of data over time. The same philosophy applies to things like risk data.

You wanna understand how millions of drivers over different weather conditions over time, different tenures of their company, and different risk patterns behave. It’s not just the in-the-moment data. That’s of course valuable, but it’s really being able to look at it over time and across customers, that’s where it accumulates to being something really interesting.

Keith Weiss, Analyst, Morgan Stanley: Awesome. Thank you so much, guys.

Derrick Wood, Analyst, TD Cowen2: Great. The next question comes from Alex Zukin with Wolfe Research, followed by Michael Turin with Wells Fargo.

Alex Zukin, Analyst, Wolfe Research: Yeah, guys. Thanks for taking the question. I echo Mike. Congratulations on a really strong quarter. Maybe, first one for you, Sanjay, just the AI offering that you launched, the agentic offering, maybe just help us understand a little bit of how you plan to monetize that within your customer base. I think you listed a few that are on the maybe horizon. You know, maybe talk to us a little bit about your vision for introducing that type of functionality, and maybe how the pricing evolves around that. Dom, it’s your largest Net New ARR beat as a public company despite the conservatism you always embed in the guidance.

I think we’re starting with a 2 percentage point expansion, on a larger scale, implying the largest starting incremental margin guidance for a fiscal year guide. Maybe walk through kind of just the momentum that you’re seeing in existing and new customers that gives you that confidence, to embed that sales efficiency to start the guidance.

Derrick Wood, Analyst, TD Cowen5: Sure. I’ll start with the agentic question. AI agents are a sort of new concept to the world and very new in the worlds of our customers. We are getting these products out there to understand better how they’re gonna use the agents, how often they’re used, the patterns and so on, and that’ll give us the data we need to figure out the right pricing model that both is a fair share of value, but also matches how the customers use the product. We’ll have more to come there. We’ll really get these out there, starting in the summer with Beyond, and we are exciting not just about the safety agent, but also the maintenance compliance and the other sort of virtual team members we can add to our customers’ teams.

Dominic Phillips, Chief Financial Officer, Samsara: I would say that, you know, again, Q4 was fantastic, but we’ve really had 3, you know, consecutive quarters now of accelerating Net New ARR growth, a lot of great momentum obviously to end FY 2026 and then taking us into FY 2027. I think not only have we demonstrated a lot of accelerating growth, but we’ve also done so by getting more efficient again across the board. You know, we’re finding ways to operate more efficiently. We’re using a lot of AI tools internally to drive a lot more productivity. Even looking at something as simple as, like, ARR per employee, that has increased every year over the last several years. I think it’s, like, up more than 30% over the last 3 years.

We’re able to drive a lot more top-line scale while doing so much more efficiently, and it gives us confidence that we can continue to do that into FY 2027.

Derrick Wood, Analyst, TD Cowen1: Great. Thank you.

Derrick Wood, Analyst, TD Cowen2: The next question comes from Michael Turn with Wells Fargo, followed by Matt Martino with Goldman Sachs.

Derrick Wood, Analyst, TD Cowen1: Hey, thanks very much. Echo my congrats as well. The 4Q results are really impressive even for Samsara in a Q4. The first question is just you had a lot of rich detail in there, but just help us understand where the sources of upside came from and if anything at all surprised you relative to what you’re expecting. As a sort of a second part to that, just how that shades what you’re framing to us for fiscal 2027 as well, Dom.

Dominic Phillips, Chief Financial Officer, Samsara: Yeah. Again, as we just kind of talked with Alex, the third consecutive quarter of Net New ARR acceleration, strongest Net New ARR growth in eight quarters, so much Net New ARR acceleration that the overall $1.9 billion of ending ARR accelerated back up to 30%. Again, large customers, a lot of large deals. The record 13 $1 million+ transactions and then the 200K and 400K+ ads was very strong. I think tied into the emerging products, we’re just seeing much larger multi-product transactions. Nine of the top 10 deals, two+ products, eight of the top 10, three+, and six of the top 10, four+. A lot of multi-product strength driving the growth.

We’re getting contribution from these emerging frontiers, whether it’s the emerging products at 23%, international, or again, some of these verticals. Three consecutive quarters, I’d say of acceleration and a lot of growth strength and, you know, that gives us a lot of good momentum going into 2027.

Derrick Wood, Analyst, TD Cowen1: Yeah. Congrats again. Thanks very much.

Derrick Wood, Analyst, TD Cowen2: Next question comes from Matt Martino with Goldman Sachs, followed by Matthew Bullock with BofA.

Derrick Wood, Analyst, TD Cowen0: Yeah. Thanks for taking the questions, guys. Sanjit, for you, Asset Tags clearly feels like something much bigger. As you introduce the XS form factor, bring in Hubble to extend the network, how should we think about the strategic end state there? Is this mainly about driving deeper adoption within the base, or does this really start to open up an entirely broader asset visibility platform for you guys?

Derrick Wood, Analyst, TD Cowen5: Matt, I would say it’s definitely both. The world of physical operations has a ton of assets. There’s of course vehicles and trailers and construction equipment, but I mentioned a lot of the smaller handheld assets. There’s tools, there’s dollies and so on. Really our first priority here is, like I said, with phase one, we’re just simply trying to digitize and get this information into the cloud so we can start operating on it. As we do that, I think it does open up a lot of interesting use cases. Many of our customers are interested in things like asset dormancy, which pieces of equipment haven’t moved, maybe they don’t need to own them and they could rent them instead. There are definitely sophisticated ways to kinda load balance where those assets are placed.

I do think there’s this agentic opportunity. All of that will appeal to our existing customers, and I do think this will open up some new possibilities of maybe some customers that don’t have a tremendous number of vehicles but have a lot of other kinds of field assets. We highlighted Total Safety, for example. They have about 250,000 assets. That would be a good example of one.

Derrick Wood, Analyst, TD Cowen2: Great. The next question comes from Matthew Bullock with BofA, followed by Derrick Wood with TD Cowen.

Dominic Phillips, Chief Financial Officer, Samsara: Great. Thanks. Sanjit, I wanted to ask about the public sector, annual net new ACV growth accelerated for the third consecutive year here. It’s now a $100 million plus ARR business that’s pretty clearly benefiting from network effects. My question was about legislation or the policy environment. We noticed that Samsara presented to Congress twice during February. What was that about specifically, and are there any kind of legislative tailwinds that we should have on our radar as we enter fiscal 2027?

Derrick Wood, Analyst, TD Cowen5: Yeah, absolutely. We are very excited about momentum in the public sector. Just as a reminder, the public sector, they have a lot of physical operations that are required to maintain and really run all of our communities. A lot of the reason that we’re providing so much information to Congress is simply to educate. We want them to understand the benefit of these technologies, not just in the public sector, but even in the private sector. Our products have a huge impact on safety, on efficiency, and it’s part of this bigger digitization trend. There I would say the work has really been around kind of education first and foremost. In the public sector itself, I think, we are seeing some great network effects, as you highlighted.

Cities and states are not competitive with one another, so when you unlock value for one, they tend to talk about it and tell others about it.

Matthew Bullock, Analyst, Bank of America: That’s fantastic. If I could squeeze one more in for Dom, if I could. Obviously the large deal momentum was excellent in 4Q, but I wanted to ask about helping frame the contribution from large deals that were ramping from 2Q and 3Q. Just helping us understand kind of what the contribution was from prior deal momentum in 4Q, given the pretty huge net new ARR number.

Dominic Phillips, Chief Financial Officer, Samsara: Most of the Q4 performance and results were driven by new deals booked and signed in the quarter. I assume the one that you’re referring to in Q2 is the First Student transaction. That was a large deal that we signed in Q2 and as a phased rollout, and so we got some of that contribution in Q4, will continue to be rolled out over time. Most of the bookings in the ARR, the net new ARR, in Q4 were the result of new deals, whether they were expansions to existing customers or signing new customers, but that were booked in the quarter.

Matthew Bullock, Analyst, Bank of America: Got it. Thank you.

Derrick Wood, Analyst, TD Cowen2: The next question comes from Derrick Wood with TD Cowen, followed by James Fish with Piper Sandler.

Derrick Wood, Analyst, TD Cowen: Great. I’ll echo my congrats as well. I guess, Sanjit, just going back on the vertical discussion, construction, 10th sequential or 10th quarter in a row of strength outsized. How much of that is being driven by physical AI data center infrastructure build-outs, and what are some of the other drivers? Then just, I mean, given the projected 10s of gigawatts of data center capacity expected to be stood up over the next 2 years, can you just talk about the strength of your pipeline, not only in construction, but those other verticals, energy, utilities, field services that are tied to data center builds?

Derrick Wood, Analyst, TD Cowen5: Sure. Derek, construction was absolutely another, you know, strong vertical for us this quarter. I would say that a significant number of our customers are involved in this AI data center build-out, but they’re also helping build and maintain roadways and buildings and kind of all the infrastructure that powers the planet. While it has been a kind of tailwind in general in the construction industry, there are a number of different sort of areas of interest there. But on the utility side, we see electrical utilities, other trades. We work with a lot of electrical contracting companies, for example. They are all involved in this AI data center build-out. It’s really been an interesting kind of macro tailwind or effect in that industry.

At the adjacent industries, as you highlighted, utilities and field services too.

Derrick Wood, Analyst, TD Cowen: Great. If I could squeeze one for Dom. Speaking of macro, I, we have been getting questions on whether the rise in memory prices would have any impact on your margins or cash flow or supply chain dynamics. Anything to flag to think about potential impact on the model?

Dominic Phillips, Chief Financial Officer, Samsara: Yeah. We’re definitely seeing some increase in memory. For us, it’s more on the storage side, the more on the NAND side than on the memory side. I think, you know, we’ve operated through different supply chain disruptions. We have a very kind of nimble supply chain team that’s really well prepared to kind of handle and navigate the current dynamics. We kind of went through something similar in 2022, and I think most importantly, we were able to meet all customer demand while driving free cash flow leverage, and we feel like we’re in a similar position now.

We factored this into the modeling notes, into the gross margin and the 100 basis points of free cash flow leverage that we started with in the notes. I think also something that we think about it, from a competitive standpoint, we think that we’re best positioned and best capitalized to navigate through this. This could be an opportunity for us to increase more market share. Ultimately, we obviously think that the prices are gonna stabilize over time, and we don’t see any long-term structural changes to our financial profile.

Derrick Wood, Analyst, TD Cowen: Great. Thank you.

Derrick Wood, Analyst, TD Cowen2: The next question comes from James Fish with Piper Sandler, followed by Alexander Sklar with Raymond James.

James Fish, Analyst, Piper Sandler: Hey, guys. Thanks for the question here. Look, I think a lot of people here are impressed by the emerging product side of things. Dom, another core north of 20% here. It seems like this is starting to become the new norm. I guess, how are you guys thinking about it for the annual guide here, and was it fairly balanced again, or a few of the products underneath starting to lead a little bit more? And Sanja, just for you, was Tag XS a customer-driven ask, or why this version? How should we think about capability difference or pricing difference? Thanks, guys.

Dominic Phillips, Chief Financial Officer, Samsara: Yeah. From the emerging products side, it very similar to the previous quarters. It was very, you know, widespread. There wasn’t one of the kind of emerging products that drove more than 50% of the bookings. You know, we saw pretty broad-based strength and, you know, we have good momentum across all of those products going into 2027.

Derrick Wood, Analyst, TD Cowen5: Yeah. In terms of Asset Tag XS, it very much was customer driven. Customers tried the original Asset Tags. They really liked the functionality. Many of these customers, they have smaller, often handheld tools where they needed something to basically add less volume. That’s where that ask came from, and that’s why we built XS. The pricing’s similar to the original Asset Tag family. It’s really the form factor that’s different.

James Fish, Analyst, Piper Sandler: Got it. Thank you.

Derrick Wood, Analyst, TD Cowen2: The next question comes from Alexander Sklar with Raymond James, followed by Peter Levine with Evercore.

Jonathan Macary, Analyst, Raymond James: Hey, guys. Thank you. This is Jonathan Macary on for Alex. Sanjit, I’ll start with you. You guys called out success in Europe again this quarter, so I wanted to ask how you’re thinking about resourcing to that region as we head into fiscal 2027. Conceptually, how much of a priority is geo expansion over the next few years? Tangentially for Dominic, I wanted to ask on the hiring embedded in the outlook for the year, you know, continued success in Europe, but you’re also seeing product velocity that seems like it continues to pick up. Curious where you’re adding more manpower across the business and then which areas are driving the leverage embedded in the guide. Thanks, guys.

Derrick Wood, Analyst, TD Cowen5: Yeah, I’ll take the first part of that. We’re again, very pleased with the progress in Europe. Dawsongroup, Petit Forestier, Fraikin, these have all been huge lands for us, are very well-known companies in the geo. I think it’s just gonna be continued investment and effort. We plan to just be consistent there, and we’re making the product investments that are required as well in terms of the features and functionality that are required. If we take a step back, we play in some of the most important geographic markets today between North America and Western Europe. I think it’s really about the follow-through and really helping digitize these large-scale operations. We still have a long way to go, which we’re excited about.

Dominic Phillips, Chief Financial Officer, Samsara: Yeah. Then on the hiring front, I touched on this a little bit earlier, but, you know, again, we expect FY 27 is gonna be another year of productivity improvements. I use the stat that over the past 3 years, the ARR per employee is up more than 30%. We expect it’ll increase again in FY 27. Most of the hiring in FY 27 will be in our go-to-market and sales-related roles. Most of the other functions are gonna be roughly the same size, maybe some smaller, which we expect will drive leverage across all of the OpEx line items.

Derrick Wood, Analyst, TD Cowen2: Great. The next question comes from Peter Levine with Evercore, followed by Jackson with William Blair.

Derrick Wood, Analyst, TD Cowen4: Yeah. Hi, guys. This is Peter Levine on for Kirk Materne. Appreciate you taking the question. I’ll echo my congrats on a really strong quarter here. Just wanna sort of focus in on, again, on the large customer segment and, you know, really strong growth and acceleration, the 100K ARR segment and the $1 million-plus ARR segment as well. I’m curious if you could just sort of unpack some of that strength and whether it’s, you know, primarily multi-product attached with some of the emerging products like Asset Tags and AI Multicam, or if you’re just seeing, you know, a broader fleet and asset expansion sort of underneath the hood in some of those larger customers.

You know, just curious, you know, how much runway sort of remains to continue to expand ARPU within that really large ARR customer base. Thanks.

Dominic Phillips, Chief Financial Officer, Samsara: Sure. Yeah. I’d say on the large customers, it was weighted a little bit more towards existing customers doing expansions. Multi-product adoption across the board definitely drove strength. Again, almost all of those, you know, licensing the core kind of vehicle-based products, telematics, and video-based safety. As I said, things like eight out of the top 10 had three-plus products, and six of the top 10 had four or more. Licensing something outside one of these emerging products, which was also, you know, quite strong for us. And similarly, even on the new logo side, the new customer lanes, the large ones all, you know, had, you know, were multi-product transactions out of the gate.

Derrick Wood, Analyst, TD Cowen4: Great. Thanks much.

Derrick Wood, Analyst, TD Cowen2: The next question comes from Jackson with William Blair, followed by Jason Celino with KeyBank.

Jackson, Analyst, William Blair: Hey, guys. Thanks for taking my question. This is Jackson on for Dylan Becker. You know, we’ve talked about the substantial data set. We have more than 25 trillion data points on the platform. Large customers are doing more. There’s more products in earlier stages of development and adoption. You know, altogether, you know, I was curious if you could speak to how all of these things really allow you to accelerate the time to value, with customers and really support that, you know, the already considerable value proposition that you guys, offer customers?

Derrick Wood, Analyst, TD Cowen5: I think, first of all, we’re excited to be able to expand the platform. This really expands areas of value more than anything else. For example, with maintenance, that was something we weren’t doing as much in before, but it’s a tremendous area of expense for our customers who have a lot of assets. Time to value continues to be strong. Our customers realize this ROI within a year. That’s never really been an issue of, like, how do we speed that up? I’m excited about helping just kind of drive that already 8x ROI that we see with customers, even broader as we expand into kind of more adjacent areas like maintenance, training, qualifications, workflows, and so on.

Jackson, Analyst, William Blair: Got it. That’s super helpful. One more quickly, if I could. You know, there’s a lot of geopolitical turmoil going on in multiple regions. You know, how should we think about the impact to the business’s international expansion plans? Like, would you even say, you know, the heightened uncertainty may provide a tailwind or headwind to potential adoption? I’m just curious any color you would you guys would have on the current, you know, macro landscape.

Derrick Wood, Analyst, TD Cowen5: I think it’s, for us, again, as I said on an earlier question, we’re pretty focused on North America and Western Europe. There’s 35 million commercial vehicles here in North America. There’s 45 million in Western Europe. We feel that the markets we’re selling in, are, you know, ready for this kind of digital transformation. They’re adopting these technologies, we’re gonna stay focused in the geographies we’re in.

Derrick Wood, Analyst, TD Cowen2: Great. Next question comes from Jason Celino with KeyBank, followed by Nick Altmann with BTIG.

Jason Celino, Analyst, KeyBank: Great. Thank you for taking my question. Maybe, you know, my first one, I think it was mentioned that you have 40 different AI detections. I don’t know if this is a new way to frame it, but, you know, how many of these are powered by, like, AI-type models, or can they be powered by kind of the same models? When we think about the categories of some of these detections, are they more than just safety-based detections?

Derrick Wood, Analyst, TD Cowen5: Sure. These are all different forms of AI detections. Some of them involve technologies like large language models. Others are kind of more time series-based models. We’re continuously expanding the library of types of detections. Safety is, of course, an important area for these detections, but we are thinking about AI models much more generally. We look at things like weather conditions and road conditions. We’re looking at other kind of health, vehicle and asset health-related AI models. We’re continually expanding, but they build on a number of different technologies.

Jason Celino, Analyst, KeyBank: Okay, great. Maybe just a quick one for Dom. SBC philosophy, I know you’re guiding to GAAP full year profitability which is refreshing. Refresh us on how you’re thinking about SBC as a whole and its trajectory. Thank you.

Dominic Phillips, Chief Financial Officer, Samsara: Yeah. We view equity-based compensation as a real cost of the business. We’ve forecast that we’re driving leverage. I think we were in the kind of the high 20s four years ago when we went public. We got it down into the low 20s last year in FY26. You know, the 10K will come out, Or it’s in the press release, but it was 20%. We’ll be below that again in FY27 and expect it to go down, you know, even further from there. This is a big area of focus for us and, you know, pleased that we were able to get the GAAP profitability now for two consecutive quarters.

I think it’ll probably go a little bit negative in Q1 where we tend to spend a little bit more money, not on the SBC side, but on the OPEX side. We’ve got a path to getting it to positive for the, for the full year.

Jason Celino, Analyst, KeyBank: Great. Thank you.

Derrick Wood, Analyst, TD Cowen2: The next question comes from Nick with BTIG, followed by Mark with Loop Capital.

Derrick Wood, Analyst, TD Cowen3: Awesome. Thank you. You mentioned you doubled the network density, and that is enabling you guys to detect the Asset Tags in near real-time. Can you just talk about how much of an unlock those new real-time detection capabilities could be for both customers who are looking to adopt Asset Tags or even existing Asset Tags customers who are potentially looking to expand their footprint? Thank you.

Derrick Wood, Analyst, TD Cowen5: Yeah, absolutely. The network density is an interesting one because it lets us basically increase the frequency and fidelity of the data we’re getting back. This is especially helpful in a scenario like theft and loss. A lot of these assets get lost or stolen. They walk away from job sites and so on. Customers are looking to go recover those. They need to know where they are, if they’re moving and so on, so definitely helps there. We also embed this technology in other areas like our worker safety wearable. Even if someone’s not near a vehicle, we’re able to help keep them safe outside of the cab. For field services workers, for example, this is a helpful technology.

I think it just increases the number of applications we can address from, kind of basic asset tracking to doing much more fine-grain analytics on these assets because we get much more frequent data updates.

Derrick Wood, Analyst, TD Cowen3: Okay, thanks.

Derrick Wood, Analyst, TD Cowen2: The next question comes from Mark with Loop, followed by Andrew with BNP.

Dominic Phillips, Chief Financial Officer, Samsara: Thanks for taking my question, and congrats on the strong quarter here. Sanjit, typically the start of the year is when software companies will adjust their sales orgs and their go-to-market strategies. Just wondering if you’re planning any meaningful changes on the sales front in the coming year?

Derrick Wood, Analyst, TD Cowen5: No. I would say, Mark, we’re always looking at efficiencies, trying to make sure we’re approaching the market in the best way possible. We’re very happy with our structure. You know, nothing significant to report there. I don’t know, Dominic, if you want to add anything.

Dominic Phillips, Chief Financial Officer, Samsara: I think more like evolutionary changes and so, you know, having kind of, you know, more global account specialists for these, like, larger multinationals. We’re experimenting and we’ll make more investments in things like product sales specialists to cover all of these emerging products, but nothing, you know, hugely structurally different going into FY27.

Derrick Wood, Analyst, TD Cowen3: Okay, great. Thanks.

Derrick Wood, Analyst, TD Cowen2: Our next question comes from Andrew with BNP, followed by Junaid with Truist. Andrew? Okay. Well, let’s pass there. Okay, our last question today comes from Junaid with Truist.

Junaid, Analyst, Truist: Great. thank you for taking my question. given the scale of your network, now and, you know, with offerings like AI Multicam 360, you know, real-time weather intelligence, you know, how do you see these capabilities positioning the platform as fleets begin adopting higher levels of autonomy? You know, how should we think about the monetization potential of that proprietary data in an autonomous future context?

Derrick Wood, Analyst, TD Cowen5: Yeah. From our perspective, autonomy is an exciting technology. It’s been on the horizon for some time, and it’s starting to come to fruition on the consumer side at least. We kind of view operations as a whole, so autonomy is an and for us. We’re gonna start seeing autonomous vehicles and devices appear in our customers’ operations at some point. We do think that they’ll help expand the number and types of assets and the applications we address. You’re gonna see more workflows, more automation happening where people and these autonomous vehicles are working together. We don’t have plans to take this video data and sell it to the autonomous providers or anything like that. For us, we’re really just tracking it as more of a technology.

Junaid, Analyst, Truist: Thank you.

Derrick Wood, Analyst, TD Cowen2: All right, this concludes the question and answer portion. Thank you all for attending our Q4 fiscal year 2026 earnings call. Before I let you go, I have a few short announcements. We’ll be attending the Loop Capital Markets Conference on March 10th and the Wells Fargo Symposium on April 8th. We’ll also be hosting the William Blair Bus Tour on March 16th and the Goldman Sachs Bus Tour on April 13th in San Francisco. We hope to see you at one of these events. Finally, we are hosting our Investor Day, as Sanjit mentioned, this June in Las Vegas. Please send an email to [email protected] if you’re interested in attending in person. For those who prefer to attend virtually, our IR website will have a link to a live broadcast. That’s it for today’s meeting.

If you have any follow-up questions, you can email us at [email protected]. Bye, everyone.