Samsara (IOT) Q1 2027: Strong Growth and Profitability — Positive Outlook

Samsara Inc. (NYSE: IOT) reported impressive financial results for the first quarter of fiscal year 2027, showcasing significant growth across key metrics. The company achieved a revenue of $478.8 million, reflecting a robust 31% year-over-year growth compared to $366.9 million in Q1 FY2026. This growth is particularly noteworthy as it indicates a strong demand for Samsara's Connected Operations® Platform amidst increasing operational challenges faced by customers.

Key Financial Metrics

• Total Revenue: $478.8 million (up from $366.9 million) — +31% YoY
• Annual Recurring Revenue (ARR): $1.991 billion (up from $1.535 billion) — +30% YoY
• Net New ARR: $100.7 million (up from $77.5 million) — +30% YoY
• GAAP Earnings Per Share (EPS): $0.08 (up from -$0.04)
• GAAP Income from Operations: $7.2 million (up from -$33.3 million)

This quarter marks the third consecutive quarter of GAAP profitability for Samsara, which is a significant milestone for the company and a positive signal for shareholders. The transition from a loss to profitability, alongside substantial revenue growth, suggests that Samsara is effectively scaling its operations and managing costs.

Analyst View

This quarter is undoubtedly a positive one for shareholders. The substantial revenue growth of $111.9 million or 31% year-over-year, combined with the achievement of GAAP profitability, indicates that Samsara is not only expanding its customer base but also enhancing its operational efficiency. The company's ability to generate $100.7 million in net new ARR further underscores its strong market position and the increasing adoption of its solutions.

Additional Highlights

• GAAP Gross Profit: $361.1 million, with a gross margin of 75% (down from 77% YoY).
• Non-GAAP Net Income per Share: $0.17 (up from $0.11).
• Net Cash Provided by Operating Activities: $81.4 million (up from $52.6 million).
• Adjusted Free Cash Flow: $73.2 million (up from $45.7 million).

While the gross margin saw a slight decline of 2 percentage points, the overall financial performance remains strong, with significant improvements in profitability and cash flow. The increase in net cash provided by operating activities by $28.8 million or 55% year-over-year is particularly encouraging, as it reflects the company's ability to generate cash from its operations.

Guidance and Future Outlook

Looking ahead, Samsara provided guidance for Q2 FY2027, expecting total revenue between $482 million and $484 million, which translates to a year-over-year growth of 23% to 24%. The company anticipates maintaining its GAAP profitability and expects non-GAAP net income per share to be between $0.15 and $0.16.

Investors should keep an eye on the upcoming Investor Day scheduled for June 24, 2026, where Samsara will provide further insights into its growth trajectory and operational strategies. This event, held in conjunction with the Samsara Beyond customer conference, is expected to shed light on the company's future initiatives and market opportunities, particularly in the realm of Operational AI and automation.

Conclusion

In summary, Samsara's Q1 FY2027 results reflect a strong performance characterized by significant revenue growth, improved profitability, and robust cash flow generation. The company's strategic focus on addressing customer needs in a challenging operational environment positions it well for continued success. As such, this quarter is a clear win for shareholders, and the outlook remains positive as the company navigates its growth path in the coming quarters.

Here are the extracted tables from the press release:

SAMSARA INC. - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except share and per share data)

Note: All amounts are in thousands.

Three Months Ended	May 2, 2026	May 3, 2025
Revenue	$478,844	$366,884
Cost of revenue	117,701	83,169
Gross profit	361,143	283,715
Operating expenses:
Research and development	97,567	83,242
Sales and marketing	203,603	165,400
General and administrative	52,778	68,328
Total operating expenses	353,948	316,970
Income (loss) from operations	7,195	-33,255
Interest income and other income, net	41,732	12,723
Income (loss) before provision for income taxes	48,927	-20,532
Provision for income taxes	4,419	1,589
Net income (loss)	$44,508	$-22,121
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	69	960
Unrealized gains (losses) on investments, net of tax	-3,097	559
Total other comprehensive income (loss):	-3,028	1,519
Comprehensive income (loss)	$41,480	$-20,602
Basic and diluted net income (loss) per share:
Net income (loss) per share, basic and diluted	$0.08	$-0.04
Weighted-average shares used in computing net income (loss) per share, basic	581,835,917	567,740,728
Weighted-average shares used in computing net income (loss) per share, diluted	587,674,441	567,740,728

SAMSARA INC. - CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

Note: All amounts are in thousands.

	As of May 2, 2026	As of January 31, 2026
Assets
Current assets:
Cash and cash equivalents	$218,986	$318,789
Short-term investments	585,333	515,003
Accounts receivable, net	284,979	321,442
Inventories	52,228	48,194
Connected device costs, current	147,898	142,904
Deferred commissions, current	88,771	85,463
Prepaid expenses and other current assets	100,103	75,323
Total current assets	1,478,298	1,507,118
Long-term investments	477,072	403,123
Property and equipment, net	84,418	81,607
Operating lease right-of-use assets	57,265	60,303
Connected device costs, non-current	310,497	297,245
Deferred commissions, non-current	184,675	176,415
Other assets	21,845	14,863
Total assets	$2,614,070	$2,540,674
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$24,335	$47,680
Accrued expenses and other current liabilities	112,224	102,073
Accrued compensation and benefits	59,577	75,403
Deferred revenue, current	703,943	679,316
Operating lease liabilities, current	12,053	12,566
Total current liabilities	912,132	917,038
Deferred revenue, non-current	123,834	129,726
Operating lease liabilities, non-current	56,967	60,202
Other liabilities	13,547	13,261
Total liabilities	$1,106,480	$1,120,227
Stockholders’ equity:
Preferred stock	—	—
Class A common stock	13	13
Class B common stock	23	23
Class C common stock	—	—
Additional paid-in capital	3,080,839	3,035,176
Accumulated other comprehensive income	1,329	4,357
Accumulated deficit	-1,574,614	-1,619,122
Total stockholders’ equity	$1,507,590	$1,420,447
Total liabilities and stockholders’ equity	$2,614,070	$2,540,674

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