Samsara Inc. IOT is scheduled to report first-quarter fiscal 2027 results on June 4, after market close.
For the first quarter of fiscal 2027, management expects non-GAAP earnings per share between 12 cents and 13 cents. The consensus mark is pegged at 13 cents per share, indicating an increase of 18% from the prior-year quarter’s reported figure. The estimate has remained unchanged over the past 60 days.
Samsara’s earnings beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, delivering an average earnings surprise of 54.6%.
For the first quarter of fiscal 2027, Samsara expects revenues between $454 million and $456 million. The Zacks Consensus Estimate is pegged at $455.5 million, suggesting growth of approximately 24% from the year-ago quarter’s reported figure.
Samsara Inc. Price and EPS Surprise
Samsara Inc. price-eps-surprise | Samsara Inc. Quote
Factors to Consider for IOT’s Q1 Results
Samsara’s fiscal first-quarter performance is expected to have benefited from the scaling of its AI-powered connected platform. Even more encouraging is the company’s traction with its largest accounts. ARR from customers contributing more than $1 million annually grew 56% year over year in the fourth quarter. The traction is likely to have continued in the first quarter of fiscal 2027.
Samsara’s fiscal first-quarter performance is expected to have benefited from strong multiproduct adoption. About 96% of customers with more than $100,000 in ARR now use at least two products, while 69% use three or more. Nine of the top 10 net new ACV deals in the fourth quarter included two or more products. This trend is likely to have continued in the to-be-reported quarter.
AI continues to be a key growth catalyst for IOT as a rising number of construction, logistics, transportation and public sector entities are adopting AI-powered solutions for safety, maintenance and workflow management to optimize the operations and fleet management. Offerings launched over the last two years accounted for 23% of net new ACV in the fourth quarter, showing that customers are responding to the company’s broader product expansion. These trends are likely to have persisted in the first quarter of fiscal 2027 as well.
As Samsara collaborates with leading OEMs of the world and uses worker training & gamification in its offerings, this is expected to have benefited the company in enhancing adoption and retention in the to-be-reported quarter. These factors are likely to have improved Samsara’s ACV in the to-be reported quarter. A key driver behind the improving profitability is Samsara’s ability to scale revenues faster than operating expenses.
However, tariff-driven uncertainty, elongated enterprise sales cycles, regional competition in Europe, and reliance on large accounts are expected to have remained headwinds for the company in the to-be-reported quarter. Samsara’s dependence on large enterprises brings longer sales cycles and volatility, while intense competition and high research & development, as well as sales & marketing spending, might have pressured profitability in the to-be-reported quarter.
Earnings Whispers for IOT Stock
Our proven model does not conclusively predict an earnings beat for Samsara this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though Samsara currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Micron Technology MU currently has an Earnings ESP of +7.42% and sports a Zacks Rank #1.
Micron Technology shares have gained 240% in the year-to-date period. Micron Technology is scheduled to release its fiscal third-quarter 2026 results on June 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
TD SYNNEX SNX has an Earnings ESP of +3.78% and flaunts a Zacks Rank #1 at present.
TD SYNNEX shares have surged 74% in the year-to-date period. TD SYNNEX is set to report second-quarter fiscal 2026 results on June 23.
Paychex PAYX presently has an Earnings ESP of +0.22% and a Zacks Rank #3.
Paychex shares have plunged 13.6% in the year-to-date period. Paychex is scheduled to release fourth-quarter fiscal 2026 results on June 24.
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Paychex, Inc. (PAYX): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
TD SYNNEX Corporation (SNX): Free Stock Analysis Report
Samsara Inc. (IOT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).