TLDR
- Q1 2026 revenue rose 31% to $366.9 million, beating forecasts.
- Adjusted EPS came in at $0.11 vs. $0.06 estimate.
- ARR grew 31% year-over-year to $1.54 billion.
- Shares fell over 13% in extended trading to $41.
- Management flagged elongated sales cycles post-tariff changes.
Samsara Inc. (NYSE: IOT) reported strong fiscal Q1 2026 earnings after market close on June 5, with revenue of $366.9 million and adjusted EPS of $0.11.
Both metrics beat analyst expectations of $351 million in revenue and $0.06 EPS. Despite the solid results, Samsara’s stock dropped over 13% in extended trading and traded at $45.61 midday on June 6, reflecting investor concerns over sales cycle delays and cautious guidance.
Revenue and ARR Continue to Climb
The San Francisco-based company posted 31% year-over-year revenue growth for the quarter ending May 3, 2025. On a constant currency basis, growth was 32%. Subscription-based annual recurring revenue (ARR) reached $1.54 billion, up 31% from the prior year and slightly above consensus expectations.
Samsara now serves 2,638 customers, generating more than $100,000 in ARR, a 35% increase year-over-year. The company’s IoT platform helps businesses monitor fleets and industrial assets using sensors, AI, and cloud software.
Thoughts on Samsara Earnings Report $IOT:
🟢 Positive
•Revenue reached $366.9M, up +30.7% YoY, beating estimates by 4.4%
•Non-GAAP Gross Margin improved to 78.5%, up +1.6 percentage points (PPs) YoY
•Non-GAAP Operating Margin rose to 13.9%, up +11.7 PPs YoY
•Free Cash Flow… pic.twitter.com/DUhHuXj7bz— Sergey (@SergeyCYW) June 6, 2025
Strong Profitability But Market Reacts to Outlook
Samsara’s adjusted EPS of $0.11 reflected a 266% jump from the $0.03 reported a year ago. This strong margin performance indicates continued operational efficiency. However, investors seemed concerned about the management’s commentary during the earnings call.
The company said it encountered elongated sales cycles in the quarter, which were attributed to customer focus on tariff-impacted goods following what RBC Capital called “Liberation Day” under the Trump administration. Though revenue guidance for the July quarter was modestly above expectations—$372 million versus the $369 million consensus—this wasn’t enough to offset macro concerns.
Long-Term Picture Remains Positive
Despite the post-earnings pullback, Samsara’s longer-term performance remains strong. Year-to-date, the stock is up 4.39%, and it has climbed nearly 31% over the past year. Over a three-year horizon, the return is an impressive 319.6%, far outpacing the S&P 500’s 45.5% gain during the same period.
Founded in 2015, Samsara continues to benefit from increasing demand for smart asset tracking and safety-enhancing technology across logistics and industrial sectors. The company’s AI-powered platform improves operational efficiency, especially in times of economic uncertainty.
Investors will now be watching closely to determine if this recent decline is a short-term reaction or a signal of more challenging quarters ahead. For now, Samsara’s strong fundamentals remain intact, even as macro dynamics introduce some uncertainty.
Investor Sentiment and Future Outlook
While the steep drop in Samsara’s share price signals short-term market anxiety, analysts may view the pullback as an opportunity, given the company’s robust fundamentals and consistent growth. The slight miss on sales cadence appears to be macro-driven rather than reflective of structural weaknesses in the business model. With a strong balance sheet, expanding customer base, and continued innovation in IoT solutions, Samsara is positioned to sustain long-term momentum once short-term headwinds subside.
