IOT · Samsara Inc.

Samsara's first quarter fiscal 2027 results reflected strong momentum as revenue grew 31% year-over-year to $478.8 million, driven by continued adoption of its Connected Operations Platform. The company achieved GAAP profitability for the third consecutive quarter, with net income of $44.5 million and diluted EPS of $0.08, compared to a net loss of $22.1 million in the prior-year period. Non-GAAP net income was $98.0 million ($0.17 per diluted share), up from $62.2 million ($0.11). Gross margin declined slightly to 75% GAAP (76% non-GAAP) from 77% GAAP (79% non-GAAP) a year ago, reflecting investment in hardware and services. Operating leverage improved significantly, with GAAP operating income of $7.2 million (2% margin) versus a loss of $33.3 million (-9% margin) in Q1 FY2026; non-GAAP operating margin expanded to 19% from 14%. Cash generation remained robust, with operating cash flow of $81.4 million (17% margin) and adjusted free cash flow of $73.2 million (15% margin). Key operational metrics highlighted the company's scale: ending annual recurring revenue (ARR) reached $1.991 billion, up 30% year-over-year, and net new ARR was $100.7 million, also up 30%. Management credited strong customer demand and the shift toward Operational AI and AI Agents as growth catalysts. Guidance for the second quarter calls for revenue of $482–$484 million (23–24% growth) and non-GAAP operating margin of 18%. For the full fiscal year 2027, Samsara expects revenue of $2.005–$2.013 billion, up 24%, with non-GAAP operating margin of 20% and non-GAAP diluted EPS of $0.70–$0.72. The company also noted it expects GAAP net income per share to be profitable even when excluding a $30 million arbitration award received in February 2026 from a litigation with Motive Technologies. The strong results and optimistic outlook underscore Samsara's position in the connected operations market, but investors should monitor margin trends and the pace of new customer acquisition.