Strong ARR Scale and Growth
Ending Q1 ARR approximately $2.0B, up 30% year-over-year; net new ARR of $101M in Q1, up 30% YoY (27% in constant currency); LTM net new ARR $455M, up 27% YoY (25% CC) and accelerating for the fourth consecutive quarter.
Samsara
· IOT
June 4th, 2026
Summary
- Earnings Call Date:
- 2026-06-04
- Change Since:
- -11.28%
- Next Earnings Date:
- 2026-08-27
Earnings Call Sentiment
PositiveThe call portrayed a strong operational and financial quarter with durable ARR and revenue growth, expanding enterprise account base, robust multiproduct adoption, meaningful contribution from emerging products, and consecutive GAAP profitability — all supporting an upgraded full-year outlook. Counterbalancing risks include near-term gross margin pressure from AI/cloud investments, supply-chain and component cost uncertainty, early-stage monetization risk for operational AI, and potential volatility from large deal timing. Overall, positives substantially outweigh the highlighted challenges.
Company Guidance
Management gave derisked guidance (FX as of May 2) for Q2 and FY‑2027: Q2 revenue $482–$484M (growth of 23–24% YoY, or 22–23% in constant currency), non‑GAAP operating margin of 18%, non‑GAAP EPS $0.15–$0.16, and expected GAAP profitability for the quarter; full‑year FY‑27 revenue $2.005–$2.013B (≈24% YoY, or 23–24% in constant currency), non‑GAAP operating margin of 20%, non‑GAAP EPS $0.70–$0.72, and expected GAAP profitability for the year.
Revenue Acceleration
Q1 revenue $479M, up 31% year-over-year (29% in constant currency), with sequential acceleration at a larger scale.
Large Customer Momentum
ARR from $100k-plus customers exceeded $1.2B, up 37% YoY; company ended Q1 with 3,363 $100k-plus ARR customers (net add of 169) and added 15 customers with $1M-plus ARR in the quarter; $1M-plus cohort ARR grew 62% YoY, showing multi-quarter acceleration.
Multiproduct Adoption and Retention
96% of $100k-plus customers subscribe to 2+ products and 70% to 3+; strong multiproduct sales with 9 of top 10 net new ACV deals including 2+ products; target core dollar-based net retention ~115%.
Emerging Products Contribution
Emerging products contributed >20% of net new ACV for the second consecutive quarter; 7 of top 10 net new ACV deals included an emerging product; 42 transactions included >$100k of emerging product net new ACV; signed largest connected asset maintenance deal (Hertz).
Profitability and Operating Leverage
Achieved third consecutive quarter of GAAP EPS profitability (GAAP EPS $0.08, included $30M arbitration award; EPS would still be positive excluding it); non-GAAP operating margin 19% (up 5 percentage points YoY); free cash flow margin 15% (up 3 points YoY) and 15th consecutive quarter surpassing Rule of 40.
Raised Guidance and Durable Outlook
Raised full-year FY'27 revenue guidance to $2.005B–$2.013B (24% YoY; 23–24% CC) and non-GAAP operating margin to 20%; Q2 guide $482M–$484M (23–24% YoY) with expectation of GAAP profitability for Q2 and full year.
International and Vertical Traction
18% of net new ACV from non-U.S. geographies (tied record) with record Europe contribution and Canada at highest net new ACV mix in 8 quarters; wholesale & retail trade and construction were top vertical contributors.
Notable New Logos and Customer Wins
Signed large customers including Hertz (software-only connected asset maintenance), Foundation Building Materials, State of Connecticut, a major pizza company, and expanded a global food distributor from telematics to a 5‑product relationship.
Mike Chang
Good afternoon, and welcome to Samsara's First Quarter Fiscal 2027 Earnings Call. I'm Mike Chang, Samsara's Senior Vice President of Finance. Joining me today are Samsara Chief Executive Officer and Co-Founder, Sanjay Biswas, and our Chief Financial Officer, Dominic Phillips. . In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation and SEC filings on our investor relations website at investors.samsara.com. The matters we'll discuss today include forward-looking statements. Actual results may differ materially from those contained in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings. Any forward-looking statements that we make on this call are based on assumptions as of today, June 04, 2026, and we undertake no obligation to update these statements as a result of new information or future events unless required by law.
During today's call, we'll discuss our first quarter fiscal 2027 financial results. We'd like to point out that the company reports non-GAAP results in addition to and not as a substitute for or superior to financial measures calculated in accordance with GAAP. We also report both actual and constant currency growth rates for certain metrics. On the call, we'll only provide constant currency commentary when there's a difference. Reconciliations of GAAP to non-GAAP financial measures and additional information on constant currency are provided in our press release and investor presentation. We'll make o...
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