IOTBy Calypso Research6 min read

Samsara (IOT) Q3 2025 Earnings Analysis

Samsara Charts a 29% Growth Course

Key Takeaways

Samsara (IOT) reported Q3 2025 earnings with revenue of $416M, representing a +29.2% year-over-year change. The stock moved +11.1% on earnings day.

The bull case: Samsara’s continued traction in large enterprises, emerging products, and international markets positions the company to sustain durable growth at scale.

The bear case: Uncertainty around deal timing with large enterprises and competition from legacy telematics providers could weigh on growth predictability.

Financial Highlights

  • Revenue: $416M (+29.2% YoY)
  • Gross Profit: $319M (76.7% margin, +0.3% YoY)
  • Operating Income: $-2M (-0.4% margin, +13.2% YoY)
  • Net Income: $8M
  • TTM Revenue: $1.5B

Stock Performance

  • Earnings Day Move: +11.1%
  • Year-to-Date: -27.1%
  • 1-Year Return: -51.2%
  • vs. S&P 500 (since earnings): -9.0%
  • vs. Nasdaq (since earnings): -11.4%

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What Management Said

Here are the key debates and direct quotes from Samsara's Q3 2025 earnings call:

Large Customer Momentum and Go-to-Market Success

Sentiment: Positive

"We've been investing in the sort of scale and security and infrastructure needed to serve large customers for a number of years, both on the R&D and the go-to-market side." — Sanjit Biswas
"Q3 was really driven by things like the record number of large customers that we added, both $100,000 and $1 million plus, we tied the quarterly record again for $1 million-plus net new ACV transactions." — Dominic Phillips

Continued Growth in Emerging Products Adoption

Sentiment: Positive

"We launched a number of new products at the customer conference earlier this year, and I think it took a few months for customers to trial them out, see how they worked." — Sanjit Biswas
"Emerging products contributed 20% of our net new ACV in Q3, up from 8% last quarter, and we saw uptake across a number of different products, not just one." — Dominic Phillips

International Expansion and Growth Opportunity

Sentiment: Positive

"First, the international market is very large. There are more assets and frontline workers in Europe, Canada, and Mexico than in the U.S." — Sanjit Biswas
"Europe contributed its highest ever quarterly net new ACV mix, and year-over-year net new ACV growth in Europe accelerated for the second consecutive quarter." — Dominic Phillips

Public Sector Traction and Opportunity

Sentiment: Positive

"Most of the work in the public sector is actually done on the state and local level, and we’re seeing great momentum with wins like the City of Los Angeles, Chicago, and the State of New York." — Sanjit Biswas
"Public sector net new ACV grew approximately 100% year-over-year, its highest growth rate in almost 3 years and crossed more than $100 million in ending ARR." — Dominic Phillips

AI-Powered Innovations and Customer ROI

Sentiment: Positive

"AI is an incredible unlock for customer value, allowing us to scale the impact of our product using AI-powered coaching and workflow automations." — Sanjit Biswas
"AI is accelerating our innovation, enabling us to release new products and meaningful features at a faster pace, driving higher customer engagement and usage." — Dominic Phillips

Bull Case

Samsara’s continued traction in large enterprises, emerging products, and international markets positions the company to sustain durable growth at scale.

Bear Case

Uncertainty around deal timing with large enterprises and competition from legacy telematics providers could weigh on growth predictability.

Looking Ahead

With revenue growing +29.2% year-over-year, the key question is whether Samsara can sustain this growth trajectory, particularly around large Customer Momentum and Go-to-Market Success. With operating margins at -0.4%, margin trends will remain a focal point. The market's positive reaction on earnings day suggests confidence in management's direction, and the next earnings report will be a key catalyst for the stock.

Frequently Asked Questions

What was Samsara's revenue in Q3 2025?

Samsara reported Q3 2025 revenue of $416M, representing a +29.2% year-over-year change.

Did Samsara beat earnings expectations in Q3 2025?

The stock rose +11.1% on earnings day, suggesting the results met or exceeded market expectations. The current bull case centers on: Samsara’s continued traction in large enterprises, emerging products, and international markets positions the company to sustain durable growth at scale.

What is the bull case for IOT stock?

The bull case for IOT centers on: Samsara’s continued traction in large enterprises, emerging products, and international markets positions the company to sustain durable growth at scale.

What is the bear case for IOT stock?

The bear case for IOT centers on: Uncertainty around deal timing with large enterprises and competition from legacy telematics providers could weigh on growth predictability.

How has IOT stock performed since its Q3 2025 earnings?

IOT moved +11.1% on the day of its Q3 2025 earnings report, underperforming the S&P 500 by +9.0% since earnings. Year-to-date, the stock has returned -27.1%.

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