Samsara, Inc. Reports Strong Q1 Earnings and Growth

Samsara, Inc. Class A ((IOT)) has held its Q1 earnings call. Read on for the main highlights of the call.

Samsara, Inc. recently held its earnings call, revealing a generally positive sentiment with strong financial growth and significant increases in annual recurring revenue (ARR). The company has expanded its large customer partnerships and continues to innovate with AI-powered solutions. While challenges such as elongated sales cycles and tariff impacts were noted, the positive aspects of the company’s performance were more prominent.

Strong ARR Growth

Samsara reported a robust first quarter for fiscal 2026, surpassing $1.5 billion in ARR and ending the quarter with $1.54 billion. This represents a 31% year-over-year growth, adjusted for constant currency, highlighting the company’s strong financial trajectory.

Increase in Large Customers

The company has successfully increased its customer base, adding 154 new customers with more than $100,000 in ARR, marking a 35% year-over-year increase. This growth underscores Samsara’s ability to attract and retain large-scale clients.

Notable Customer Partnerships

Samsara has formed partnerships with several large organizations, including 7-Eleven, Dallas-Fort Worth Airport, and one of the largest counties in the U.S. These collaborations demonstrate Samsara’s capability to work with industry leaders and expand its influence.

AI-Powered Safety Solutions

The company’s AI-powered safety solutions have made a significant impact, achieving a 75% reduction in safety events and a 71% reduction in mobile usage for a major retail propane company. This highlights Samsara’s commitment to innovation and safety.

Expansion of OEM Partnerships

Samsara has expanded its ecosystem through new OEM partnerships with Hyundai Translead, Stellantis, and Rivian. These partnerships enhance trailer visibility, vehicle connections, and electric fleet management, further solidifying Samsara’s market position.

International Growth

International markets contributed 18% of net new ACV, tying for the highest quarterly contribution ever. Europe, in particular, reached its highest quarterly net new ACV mix, demonstrating Samsara’s successful global expansion strategy.

Record Gross Margin

Samsara achieved a quarterly record non-GAAP gross margin of 79%, showcasing the company’s efficient operational management and profitability.

Elongated Sales Cycles

The company experienced elongated sales cycles, particularly after Liberation Day in April, as some customers prioritized spending on tariff-impacted goods. This challenge has been noted as an area for improvement.

Impact of Tariffs

Tariffs have affected customer purchasing strategies for vehicles, equipment, and other assets, presenting a challenge for Samsara as it navigates these external economic factors.

Forward-Looking Guidance

Looking ahead, Samsara forecasts a full-year revenue of $1.547 billion to $1.555 billion, with a non-GAAP operating margin of approximately 13% and earnings per share (EPS) between $0.39 and $0.41. The company remains optimistic about its growth prospects, driven by its multi-product strategy and international market contributions.

In summary, Samsara’s earnings call highlighted strong financial growth and strategic expansions, despite some challenges. The company’s positive sentiment, driven by significant ARR increases and innovative solutions, suggests a promising outlook for the future.