Samsara Inc. IOT reported better-than-expected first-quarter fiscal 2027 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Samsara’s first-quarter non-GAAP earnings of 17 cents per share exceeded the Zacks Consensus Estimate of 13 cents and increased from 11 cents reported in the year-ago quarter. The figure also surpassed expectations by 30.8%.
Samsara’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 41.42%.
Samsara’s first-quarter revenues of $478.8 million topped the consensus mark of $452 million and increased 31% year over year. On a constant-currency basis, revenues grew 29%.
Samsara Inc. Price, Consensus and EPS Surprise
Samsara Inc. price-consensus-eps-surprise-chart | Samsara Inc. Quote
Samsara’s Q1 Results in Details
Samsara reported non-GAAP gross profit of $366.3 million compared with $288.1 million in the year-ago quarter. Non-GAAP gross margin contracted 300 basis points year over year to 76%.
The non-GAAP operating income totaled $91 million, up from $51.1 million reported in the year-ago quarter. The non-GAAP operating margin expanded 500 basis points to 19%.
General & administrative (G&A) expenses on a non-GAAP basis decreased to $30.9 million from $43.5 million in the year-ago quarter. G&A expenses accounted for 6.4% of quarterly revenues, down from 11.9% in the year-ago quarter.
Research & development (R&D) expenditures on a non-GAAP basis increased to $65.5 million from $53.7 million in the year-ago quarter. R&D expenses accounted for 13.7% of first-quarter revenues, down from 14.6% in the year-ago quarter.
Non-GAAP sales & marketing costs of $179 million were up from $139.8 million. These expenses accounted for 37.4% of first-quarter revenues, down from 38.1% in the year-ago quarter.
Annual recurring revenues (ARR) were $1.99 billion, increasing 30% year over year. Net new ARR during the quarter was $100.7 million, reflecting strong customer demand and continued platform adoption.
Samsara’s Balance Sheet & Other Details
As of May 2, 2026, Samsara had cash and cash equivalents of $219 million compared with $318.8 million as of Jan. 31, 2026.
The company generated operating cash flow of $81.4 million and adjusted free cash flow of $73.2 million during the quarter. Adjusted free cash flow margin expanded to 15% from 12% a year ago.
Samsara’s Offers Q2 & FY27 Guidance
For the second quarter of fiscal 2027, Samsara expects revenues between $482 million and $484 million. The midpoint of the guidance range suggests year-over-year growth of approximately 24%. The Zacks Consensus Estimate for revenues is pegged at $478.8 million, suggesting a year-over-year jump of 22.3%.
The company expects non-GAAP earnings per share (EPS) between 15 cents and 16 cents for the second quarter. The Zacks Consensus Estimate for earnings is pegged at 15 cents, calling for a year-over-year rise of 25%.
For fiscal 2027, Samsara projects revenues between $2.005 billion and $2.013 billion, indicating approximately 24% year-over-year growth. The Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $1.97 billion, indicating a year-over-year increase of 21.8%.
Management expects fiscal 2027 non-GAAP EPS in the range of 70 cents to 72 cents and anticipates a non-GAAP operating margin of 20%. The Zacks Consensus Estimate for earnings is pegged at 69 cents, indicating a year-over-year rise of 23.2%.
IOT’s Zacks Rank & Stocks to Consider
Currently, Samsara carries a Zacks Rank #3 (Hold).
Micron Technology MU, Sandisk Corporation SNDK and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU and SNDK each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 249% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Sandisk Corporation shares have returned 641.3% in the year-to-date period. The company is expected to report fourth-quarter fiscal 2026 results on Aug.13.
Amphenol shares have gained 8.7% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.
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Amphenol Corporation (APH): Free Stock Analysis Report
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Samsara Inc. (IOT): Free Stock Analysis Report
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