Summary
Samsara reported first quarter fiscal 2027 revenue of $478.8 million, up 30.5% from the prior-year quarter. GAAP gross profit was $361.1 million, up 27.3%. GAAP operating income was $7.2 million, a swing to profit from an operating loss in the prior-year quarter. GAAP net income was $44.5 million, also a swing to profit. Diluted GAAP earnings per share was $0.08, a swing to profit from a loss in the prior-year quarter. Gross margin was 75.4%, down 1.9 percentage points. Operating margin was 1.5%, up 10.6 percentage points. Non-GAAP gross margin was 76%, compared with 79% in the prior-year quarter. Non-GAAP operating margin was 19%, compared with 14%. The net income result included a legal gain from an arbitration award, which the filing says was recognized in the quarter. The company also reported non-GAAP operating income of $91.0 million and non-GAAP net income of $98.0 million. Non-GAAP diluted earnings per share was $0.17.
Annual recurring revenue ended the quarter at $1.991 billion, up 30% year over year. Net new ARR was $100.7 million, up 30% and up 27% in constant currency. Customers with more than $100,000 in ARR reached 3,363, compared with 2,638 a year earlier. Deferred revenue was $827.8 million, up 17.2%. Remaining performance obligations were $3.99 billion, up 44.7%. Those metrics point to a business still adding large customers and building a larger backlog. The company said its Connected Operations Platform and AI Agents are aimed at physical industries facing worker capacity constraints.
Cash generation improved. Operating cash flow was $81.4 million, up 54.7% from the prior-year quarter. Capital expenditures were $8.2 million, up 19.0%. Adjusted free cash flow was $73.2 million, up from $45.7 million. Adjusted free cash flow margin was 15%, compared with 12%. Operating cash flow and free cash flow are different measures, and the company reports both. The filing attributes the gross margin decline to higher cloud and cellular costs, connected device costs, and employee-related costs. The company continues to invest in AI tooling, headcount, and demand generation.
Guidance for the second quarter of fiscal 2027 calls for year-over-year revenue growth of 23% to 24%, or 22% to 23% in constant currency. The company expects non-GAAP operating margin of 18% to 20% and non-GAAP diluted earnings per share of $0.15 to $0.16. For the full fiscal year 2027, guidance is revenue growth of 24%, constant currency growth of 23% to 24%, non-GAAP operating margin of 18% to 20%, and non-GAAP diluted earnings per share of $0.70 to $0.72. Samsara expects GAAP profitability for the full year, even excluding the arbitration award. The outlook assumes a $3 million positive constant currency impact for the second quarter and an $11 million positive impact for the full year.
Risks include macroeconomic trends, inflation, foreign currency fluctuations, interest rates, supply chain disruptions, higher memory and computing costs, tariffs, geopolitical tension, customer spending delays, competition, security breaches, and longer sales cycles. The company also faces execution risk as it invests in AI and scales its platform. Samsara will host an Investor Day on June 24, 2026.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2027 | Q4 FY2026 | QoQ | Q1 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $478.8M | $444.3M | +7.8% | $366.9M | +30.5% |
| Gross profit | $361.1M | $338.4M | +6.7% | $283.7M | +27.3% |
| Gross margin | 75.4% | 76.2% | -0.7 pp | 77.3% | -1.9 pp |
| Research & development | $97.6M | $89.5M | +9.0% | $83.2M | +17.2% |
| Sales & marketing | $203.6M | $175.9M | +15.7% | $165.4M | +23.1% |
| General & administrative | $52.8M | $63.9M | -17.5% | $68.3M | -22.8% |
| Total operating expenses | $353.9M | $329.4M | +7.5% | $317.0M | +11.7% |
| Operating income (loss) | $7.2M | $9.0M | -20.2% | -$33.3M | +121.6% |
| Operating margin | 1.5% | 2.0% | -0.5 pp | -9.1% | +10.6 pp |
| Net income (loss) | $44.5M | $22.0M | +102.0% | -$22.1M | +301.2% |
| Net margin | 9.3% | 5.0% | +4.3 pp | -6.0% | +15.3 pp |
| Diluted EPS | $0.08 | $0.04 | +$0.04 | -$0.04 | +$0.12 |
Risks
The company completed its conversion from Delaware to Nevada on June 1, 2026, and updated risk factors state that Nevada law and charter provisions, including a two-thirds Class B approval requirement and board-only vacancy filling, may deter or delay a change of control and limit stockholders' ability to replace directors.
MD&A highlights unfavorable economic conditions, including inflationary pressure, tariffs, supply chain disruptions, fluctuating hardware component and cloud costs, and delayed technology spending, which could affect customer spending and results.
Gross margin decreased to 75% for the quarter ended May 2, 2026 from 77% in the prior-year quarter, mainly due to increased cloud and cellular costs, and cost of revenue rose 42% year over year.
R&D expense increased 17% year over year, including a $4.6 million increase in cloud and cellular costs driven by investments in AI tooling and related development infrastructure, which may pressure operating margins if these investments do not yield returns.
Bylaws designate Nevada state courts as the exclusive forum for most internal corporate disputes and federal district courts for federal securities claims, which may discourage lawsuits and increase costs if a court finds the provisions unenforceable.
The company does not intend to pay dividends for the foreseeable future and may be restricted by future debt or Nevada law, so stockholders must rely on stock price appreciation for gains.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Free Cash Flow Margin
ARR adjusted for constant currency
ARR
Net New ARR
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q1 FY2027 (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 1, 2026.