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Samsara Inc. (IOT)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 revenue was $366.9M (+31% YoY; +32% constant currency) and non-GAAP diluted EPS was $0.11, both beating Wall Street consensus; ARR reached $1.535B (+31% YoY) with 2,638 customers over $100K ARR (+35% YoY) . Compared to consensus, revenue beat by ~$15.4M and EPS by ~$0.05*.
  • Non-GAAP gross margin hit a quarterly record 79% and non-GAAP operating margin expanded to 14% (from 2% a year ago), with adjusted FCF margin at 12% .
  • Guidance was raised materially: FY26 revenue to $1.547–$1.555B (from $1.523–$1.533B), non-GAAP op margin to ~13% (from 11%), and non-GAAP diluted EPS to $0.39–$0.41 (from $0.32–$0.34) .
  • Management cited elongated sales cycles post “Liberation Day” due to tariffs but noted record Q1 pipeline, stable win rates, and deals closing in May; OEM partnerships (Hyundai Translead, Stellantis, Rivian) broaden data integrations and future gross margin potential .

What Went Well and What Went Wrong

What Went Well

  • Large-customer momentum: 2,638 customers >$100K ARR (+35% YoY); ARR mix from >$100K customers rose to 58% and ARR per >$100K customer increased to $338K .
  • Record profitability metrics: Non-GAAP gross margin 79% (record), non-GAAP operating margin 14% (+12 pts YoY), adjusted FCF margin 12% (+6 pts YoY) .
  • AI-driven safety and maintenance gains: CEO emphasized AI alerts and coaching; example propane customer achieved 75% reduction in safety events and 71% reduction in mobile usage during pilot before expansion . “Our AI-powered platform delivers a clear and fast ROI…” .

What Went Wrong

  • Sales cycle elongation tied to tariffs: CFO said higher-than-expected tariffs led customers to prioritize tariff-impacted assets, creating timing risk and a multi-million-dollar impact within Q1; broad-based across verticals .
  • Near-term gross margin leverage limited: CFO does not expect near-term leverage despite OEM integrations; potential is more medium/long term as software-only SKUs scale .
  • Macro uncertainty: Management flagged timing risk to deals and prioritized conservative guidance philosophy, despite record pipeline .

Financial Results

Consolidated Performance vs prior periods

MetricQ3 FY25 (older)Q4 FY25Q1 FY26 (newest)
Revenue ($USD Millions)$322.0 $346.3 $366.9
GAAP Diluted EPS ($)$(0.07) $(0.02) $(0.04)
Non-GAAP Diluted EPS ($)$0.07 $0.11 $0.11
GAAP Gross Margin (%)76% 77% 77%
Non-GAAP Operating Margin (%)11% 16% 14%
Adjusted Free Cash Flow Margin (%)10% 14% 12%

Q1 FY26 Actuals vs Estimates

MetricActualConsensus EstimateSurprise
Revenue ($USD)$366,884,000 $351,440,710*+$15,443,290 (+4.4%)*
Non-GAAP Diluted EPS ($)$0.11 $0.0574*+$0.0526 (+91.7%)*

Values retrieved from S&P Global*

Operating KPIs and Mix

KPIQ3 FY25 (older)Q4 FY25Q1 FY26 (newest)
ARR ($USD Billions)$1.349 $1.458 $1.535
Customers >$100K ARR (count)2,303 2,506 2,638
Non-GAAP Gross Margin (%)78% 78% 79%
Net Cash from Ops ($USD Millions)$36.0 $53.9 $52.6
Adjusted Free Cash Flow ($USD Millions)$31.2 $48.5 $45.7
Dollar-Based Net Retention (approx.)~115% ~115% ~115%

Guidance Changes

MetricPeriodPrevious Guidance (Q4 FY25)Current Guidance (Q1 FY26)Change
Total Revenue ($USD Billions)FY26$1.523–$1.533 $1.547–$1.555 Raised
YoY Revenue Growth (%)FY2622%–23% 24% (24%–25% CC) Raised
Non-GAAP Operating Margin (%)FY26~11% ~13% Raised
Non-GAAP Diluted EPS ($)FY26$0.32–$0.34 $0.39–$0.41 Raised
Total Revenue ($USD Millions)Q2 FY26N/A$371–$373 New
Non-GAAP Operating Margin (%)Q2 FY26N/A9% New
Non-GAAP Diluted EPS ($)Q2 FY26N/A$0.06–$0.07 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25, Q4 FY25)Current Period (Q1 FY26)Trend
AI/Technology InitiativesAnnounced Samsara Intelligence; 10T+ data points per year; AI seen as transformative for safety/efficiency Emphasis on AI-powered safety inbox, maintenance insights; strong pilot outcomes; driver recognition features Accelerating
OEM/IntegrationsProduct innovations, partner momentum; expanding app ecosystem New OEM integrations: Hyundai Translead, Stellantis, Rivian; cloud-to-cloud data; future GM accretion potential Expanding
Macro/TariffsCautious guide philosophy; large opportunities despite uncertainty Tariff-driven sales cycle elongation; multi-million Q1 impact; record pipeline; deals closed in May Mixed (near-term headwind)
Vertical StrengthConstruction, food & beverage, public sector strong in Q4 Construction highest net new ACV mix again; public sector and transportation acceleration; field services standardization Broadening
InternationalU.K./Mexico acceleration in Q4; investment continues 18% of net new ACV from international (tied highest); Europe strength; product-market fit maturing Improving
Non-vehicle ProductsRising mix in Q4; asset tags momentum Equipment monitoring accelerates for 4th straight quarter; asset tags strong use cases Growing
ProfitabilityRecord GM/OM/FCF margins in Q4 Record non-GAAP GM (79%); OM 14%; FCF margin 12% Sustained at higher level

Management Commentary

  • “We delivered a strong first quarter... Q1 revenue of $366.9 million, growing 32% year-over-year in constant currency... Our AI-powered platform delivers a clear and fast ROI” — Sanjit Biswas, CEO .
  • “After a strong start, we experienced elongated sales cycles... customers prioritized spending on tariff-impacted goods... record pipeline in Q1; win rates remain healthy” — Dominic Phillips, CFO .
  • “We’re partnering with Hyundai Translead... Stellantis... Rivian... to create seamless cloud-to-cloud connections... reduce friction” — Sanjit Biswas, CEO .

Q&A Highlights

  • Deal timing and tariffs: CFO quantified a multi-million dollar impact, with deals closing in May; broad-based across verticals .
  • OEM impact on margins: Near-term limited; medium/long-term gross margin accretive as integrations scale and software-only SKUs expand .
  • Vertical momentum: Construction, transportation, public sector strength driven by safety/efficiency ROI; field services attach growing .
  • Product attach and NRR: Non-vehicle applications usage higher than ARR mix; DBNRR target ~115% maintained .
  • Sales capacity and pipeline: Sales productivity solid; adding capacity; record pipeline generation quarter in Q1 .

Estimates Context

  • Q1 FY26 beats: Revenue $366.9M vs $351.4M estimate (+4.4%); non-GAAP diluted EPS $0.11 vs $0.057 estimate (+91.7%)* .
  • Implication: Street may need to raise FY26 revenue and EPS estimates given raised full-year guidance and Q1 outperformance .
  • Values retrieved from S&P Global*

Key Takeaways for Investors

  • Strong beat-and-raise quarter: Q1 revenue/EPS beats and a material FY26 guidance raise (revenue, margins, EPS) signal durable growth and improving profitability .
  • Near-term tariff headwinds caused timing shifts but demand indicators (record pipeline, healthy win rates) remain intact; watch macro headlines for deal timing risk .
  • OEM integrations and software-only SKUs are strategic levers for long-term gross margin expansion; near-term impact limited .
  • Large enterprise focus is paying off with higher ARR mix from >$100K customers and multi-product expansions; DBNRR ~115% sustained .
  • AI moat strengthening across safety and maintenance; new driver Recognition feature and equipment monitoring momentum broaden use cases and attach .
  • International (Europe) traction improving; contributes diversification and incremental growth .
  • Upcoming Investor Day (June 24, 2025) could be a catalyst for product roadmap clarity and longer-term targets .