TLDR
- Samsara delivered first-quarter fiscal 2027 earnings per share of $0.17, surpassing analyst expectations of $0.13, while revenue reached $478.8 million versus the anticipated $455.2 million.
- The company’s annual recurring revenue reached the $2 billion milestone, climbing 30% compared to the previous year, while ARR from seven-figure customers skyrocketed 62%.
- Management elevated fiscal 2027 full-year revenue projections to a range of $2.005–$2.013 billion, exceeding both previous forecasts and Wall Street’s expectations.
- Shares declined approximately 3% during premarket hours to $34.18, following the previous day’s closing price of $35.21.
- RBC Capital increased its target price to $42 from $41 while keeping an Outperform rating, though the modest adjustment failed to prevent investor profit-taking.
Samsara (IOT) delivered impressive quarterly results Thursday, yet shareholders opted to cash in their gains regardless. Shares retreated to $34.18 during Friday’s premarket session, marking a roughly 3% decline from the previous close of $35.21.
The connected operations platform provider announced adjusted earnings of $0.17 per share for its fiscal 2027 first quarter, significantly exceeding Wall Street’s $0.13 projection. Top-line performance reached $478.8 million, representing a 31% year-over-year increase and comfortably beating the $455.2 million consensus estimate.
The firm’s annual recurring revenue surpassed the $2 billion threshold for the first time, marking a 30% year-over-year expansion. Net new ARR increased 30% to $100.7 million, while revenue from enterprise customers exceeding $1 million annually soared 62% — marking the fourth consecutive quarter of acceleration in this segment.
Adjusted operating margin reached 19%, up from 14% in the comparable year-ago period. Management attributed the margin enhancement to operational efficiencies across its sales organization, research and development functions, and administrative operations.
Chief Executive Officer Sanjit Biswas emphasized the achievement of GAAP earnings profitability for three straight quarters. He identified increasing workforce challenges at customer locations as a primary catalyst driving adoption of Samsara’s artificial intelligence-powered automation solutions.
AI Data Center Buildout Is Lifting Demand
Samsara also highlighted the accelerating construction of AI data centers as a significant growth catalyst. Management noted that infrastructure spending — encompassing power generation facilities, cooling systems, and electrical grid enhancements — is increasingly flowing into the physical operations sectors the company targets, generating sustained demand.
The quarter concluded with 3,363 customers producing over $100,000 in annual recurring revenue and 190 clients at the million-dollar-plus threshold. The company secured 11 new contracts exceeding $1 million in net new annual contract value, representing its second-strongest quarterly performance on record.
Newer product offerings accounted for over 20% of net new annual contract value for the second quarter running.
Guidance Nudged Up, But Not Enough for the Bulls
For the complete fiscal 2027 year, Samsara increased its adjusted earnings per share outlook to $0.70–$0.72 from the previous range of $0.65–$0.69, topping the $0.68 analyst consensus. Revenue projections were elevated to $2.005–$2.013 billion, surpassing both its earlier forecast of $1.965–$1.975 billion and Wall Street’s $1.971 billion estimate.
Second-quarter revenue guidance projected $482–$484 million compared to analyst expectations of $480 million — a modest upside that failed to generate enthusiasm.
This limited beat appears to be driving the sell-off. IOT shares had already rallied approximately 20% following the prior quarter’s results in March, establishing a higher threshold for sustained post-earnings momentum.
RBC Capital elevated its price objective to $42 from $41 while maintaining its Outperform rating, a positive yet measured response.
The stock remains well below its 52-week peak of $47.47, though it continues trading above its 52-week low of $23.38.
