Samsara beats Q1 estimates by 27% as ARR tops $2 billion

Samsara Inc. reported fiscal first-quarter earnings that topped analyst estimates across both profit and revenue, with annual recurring revenue crossing the $2 billion mark for the first time.

"The results reflect strong demand for our AI-driven automation solutions as customers face growing labor shortages," Chief Executive Officer Sanjit Biswas said.

Adjusted earnings per share came in at $0.17 for the quarter ended April 2026, surpassing the average analyst estimate of $0.13 by 27.5%. Revenue rose 31% from a year earlier to $478.8 million, exceeding the $455.2 million consensus. The company has now beaten consensus EPS estimates in each of the last four quarters.

Metric	Actual	Consensus	Beat/Miss
Revenue	$478.8M	$455.2M	+5.1%
EPS	$0.17	$0.13	+27.5%
ARR	$2.0B	—	+30% YoY

Annual recurring revenue reached $2 billion, a 30% increase from the prior year. Net new ARR expanded 30% to $100.7 million. The company's enterprise segment showed particular strength, with ARR from customers spending more than $1 million annually surging 62% — the fourth consecutive quarter of acceleration in that metric. Samsara ended the quarter with 3,363 accounts generating at least $100,000 in ARR and 190 accounts above the $1 million threshold. Newer product offerings accounted for more than 20% of net new annual contract value for the second straight quarter.

Adjusted operating margin widened to 19% from 14% a year earlier, driven by improved efficiency across sales, research and development, and general administrative functions. The company achieved GAAP earnings per share profitability for the third consecutive quarter.

For the full fiscal 2027 year, Samsara raised its adjusted EPS forecast to a range of $0.70 to $0.72, up from $0.65 to $0.69 and above the $0.68 consensus. It also increased its revenue outlook to $2.005 billion to $2.013 billion, compared with its prior projection of $1.965 billion to $1.975 billion and above the $1.971 billion Street estimate. For the current quarter, management projected revenue of $482 million to $484 million, slightly ahead of the $480 million consensus.

Shares fell about 3% in premarket trading to $34.18, paring some of the 20% gain the stock had posted since the company's March earnings report. RBC Capital raised its price target to $42 from $41 while maintaining an Outperform rating.

The guidance raise signals management expects AI-driven demand to sustain its momentum. Investors will watch the next quarterly report for further margin expansion as the company scales its connected operations platform.

This article is for informational purposes only and does not constitute investment advice.