Samsara Inc.

Q1 revenue was $479 million, up 31% year over year, or 29% in constant currency. Q1 net new ARR was $101 million, up 30% year over year, or 27% in constant currency; ending ARR was approximately $2 billion, up 30% year over year. ARR from $100,000+ customers was $1.2 billion, up 37% year over year, and ARR from $1 million+ customers was up 62% year over year. Non-GAAP operating margin was 19%, up 5 percentage points year over year; free cash flow margin was 15%, up 3 points; GAAP EPS was $0.08, including a $30 million arbitration award and positive even excluding it. For Q2 FY27, management guided to revenue of $482 million to $484 million, non-GAAP operating margin of 18%, non-GAAP EPS of $0.15 to $0.16, and GAAP profitability. For full-year FY27, guidance is revenue of $2.005 billion to $2.013 billion, non-GAAP operating margin of 20%, non-GAAP EPS of $0.70 to $0.72, and GAAP profitability.

Sanjit Biswas framed the quarter as evidence that Samsara is benefiting from a durable transition to digitized physical operations, calling out infrastructure buildout, operational AI and broader platform adoption as major growth drivers. He emphasized that customers are early in adopting connected maintenance, waste intelligence, ground intelligence and agentic tools, but said feedback and beta results are strong. His tone was confident and expansive, with repeated emphasis on a large, long-duration opportunity tied to real-world operations rather than near-term cyclicality.

Dominic Phillips highlighted accelerating growth at scale and improving leverage, pointing to 31% revenue growth, 19% non-GAAP operating margin, 15% free cash flow margin and third straight quarter of GAAP profitability. He said gross margin was pressured by higher AI and cloud spending, but expects gross margins to be roughly flat for FY27 as costs are offset by other COGS optimizations and OpEx reallocation. He also noted software-only deals are gross-margin accretive because they avoid hardware amortization, and said headcount growth will remain concentrated in go-to-market while other functions stay roughly flat or smaller.

Analysts pressed on how early connected asset maintenance is, and management said the shift from time/mileage-based maintenance to data-driven maintenance is still early but resonating with sophisticated fleets. Questions on gross margin and memory costs drew a response that AI/cloud spend is higher, but gross margin should be roughly flat for FY27 and operating margin should expand. Management also addressed supply constraints, saying DRAM/NAND pricing is tighter and visibility is shorter, but they expect to meet demand and see a potential share-gain opportunity.