Summary
Samsara opened fiscal 2026 with revenue of $366.9 million in the first quarter, up 30.7% from the prior-year quarter. The top line was helped by a larger customer base and more spending by existing customers on subscription offerings. Annual recurring revenue ended the quarter at $1.535 billion, up 31% year over year. On a constant currency basis, revenue rose 32%, to $370.4 million, and ARR rose 31%. The company reported 2,638 customers with ARR over $100,000, up 35% from the prior-year period. That larger-customer push matters because Samsara continues to steer sales toward enterprises with complex physical operations.
Margins and profitability improved. GAAP gross profit was $283.7 million, up 33.8%, and GAAP gross margin reached 77.3%, up 1.8 percentage points from 75.6%. The GAAP operating loss narrowed to $33.3 million from $66.0 million. GAAP operating margin improved to negative 9.1% from negative 23.5%. The GAAP net loss narrowed to $22.1 million from $56.3 million. GAAP diluted net loss per share was $0.04, compared with a loss of $0.10 in the prior-year quarter. On a non-GAAP basis, gross profit was $288.1 million, and gross margin was 79%, up from 77%. Non-GAAP operating income was $51.1 million, compared with $6.2 million a year earlier, and non-GAAP operating margin was 14%, up from 2%. Non-GAAP net income was $62.2 million, or $0.11 per diluted share, compared with $15.9 million, or $0.03 per diluted share. Those non-GAAP figures exclude stock-based compensation expense-related charges, which remain a large gap between GAAP and non-GAAP results.
Cash generation was a clear bright spot. Net cash provided by operating activities was $52.6 million, up 122.3% from $23.7 million in the prior-year quarter. Capital expenditures were $6.9 million, up 36.7% from $5.1 million. Adjusted free cash flow was $45.7 million, compared with $18.6 million a year earlier, and adjusted free cash flow margin was 12%, up from 7%. Operating cash flow margin was 14%, up from 8%. The balance sheet also showed momentum in future revenue. Deferred revenue was $706.1 million, up 20.1% from $588.0 million. Remaining performance obligations were $2.76 billion, up 28.4% from $2.15 billion. Both metrics grew from the prior-year period.
Management's guidance covers the second quarter and the full fiscal year. For the second quarter of fiscal 2026, Samsara guides non-GAAP operating margin of 9% and non-GAAP diluted net income per share of $0.06 to $0.07. For the full fiscal year 2026, the company expects non-GAAP operating margin of 13% and non-GAAP diluted net income per share of $0.39 to $0.41. The revenue outlook accounts for an expected constant currency headwind of about $1 million in the second quarter and about $2 million for the full year. Management flags an uncertain macro environment, customer adoption and retention risk, competition, foreign currency fluctuations, supply chain challenges, inflation and interest rates, and geopolitical tensions as factors that could affect results. The company also changed its customer definition to group affiliated entities under a shared parent, a shift that affects how it counts large customers. Samsara plans an Investor Day on June 24, 2025, alongside its Samsara Beyond customer conference, where it intends to give more detail on its trajectory.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $366.9M | $346.3M | +5.9% | $280.7M | +30.7% |
| Gross profit | $283.7M | $266.0M | +6.7% | $212.1M | +33.8% |
| Gross margin | 77.3% | 76.8% | +0.5 pp | 75.5% | +1.8 pp |
| Research & development | $83.2M | $73.3M | +13.6% | $73.0M | +14.1% |
| Sales & marketing | $165.4M | $152.7M | +8.4% | $147.4M | +12.2% |
| General & administrative | $68.3M | $57.2M | +19.5% | $57.7M | +18.4% |
| Total operating expenses | $317.0M | $284.4M | +11.5% | $278.1M | +14.0% |
| Operating income (loss) | -$33.3M | -$18.4M | -80.6% | -$66.0M | +49.6% |
| Operating margin | -9.1% | -5.3% | -3.7 pp | -23.5% | +14.5 pp |
| Net income (loss) | -$22.1M | -$11.2M | -97.5% | -$56.3M | +60.7% |
| Net margin | -6.0% | -3.2% | -2.8 pp | -20.1% | +14.0 pp |
| Diluted EPS | -$0.04 | -$0.02 | -$0.02 | -$0.10 | +$0.06 |
Risks
Samsara depends on a limited number of joint design manufacturers, and in some cases a single manufacturer, for its IoT devices and critical components. Component shortages, long lead times, and disruptions at suppliers with operations in China and Taiwan could delay device shipments and harm the company's ability to onboard new customers and recognize subscription revenue.
Evolving trade policies, including tariffs and other trade barriers imposed or threatened by the United States and other countries, are expected to increase production costs, disrupt supply chain logistics, and affect the company's ability to transport, store, and deliver IoT devices. The filing states these developments could negatively impact revenue growth and operating margins.
Samsara sells to physical operations industries such as transportation, construction, logistics, manufacturing, and retail, which are particularly exposed to economic uncertainty. Elevated inflation, volatile market conditions, and reduced IT spending have caused and may continue to cause customers to slow spending and delay purchases.
Ongoing conflicts such as Russia and Ukraine and the conflict in the Middle East, plus geopolitical tensions involving China, are cited as factors that can disrupt operations, supply chains, and macroeconomic conditions. The filing specifically warns that increased China and Taiwan tensions could affect suppliers and joint design manufacturers in Taiwan and secondary locations in Asia.
Economic uncertainty and constrained customer credit access have caused delays in and lengthening of sales cycles, and may impair customers' willingness to purchase subscriptions or ability to pay timely. The filing also notes difficulties collecting accounts receivable if customer financial conditions deteriorate.
In challenging market conditions, competitors may lower prices and attempt to lure away Samsara's customers, which could adversely affect the business. The risk is tied to pricing pressure and customer retention during economic downturns.
The OECD Pillar Two global minimum corporate tax of 15% became effective for Samsara beginning in fiscal year 2026. While the company does not currently expect a material impact, it expects to incur additional compliance costs and will continue monitoring United States and global legislative action.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Annual Recurring Revenue (ARR)
Free Cash Flow Margin
ARR adjusted for constant currency
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.