Executive Summary
Samsara posted a strong start to fiscal year 2026, underscored by durable top-line growth and efficiency gains. Ended Q1 with annual recurring revenue (ARR) of $1.54 billion, up 31% year-over-year (YoY, CC up 32%), and revenue of $367 million, also up 31% YoY (32% CC). The company highlighted broad-based demand from large enterprise customers, a high rate of multi-product adoption, and a record pipeline, signaling durable growth. Margin dynamics improved meaningfully on a non-GAAP basis, with gross margin at a quarterly record of 79% and non-GAAP operating margin at 14%, alongside a 12% adjusted free cash flow margin. Management emphasized AI-enabled safety, maintenance automation, and an expanded OEM ecosystem as key levers for continued expansion. Guidance reflects continued growth with a focus on durability and efficiency, though macro headwinds such as tariff-related investment timing remain a near-term risk. This report synthesizes the quarter’s financials with management commentary to provide an investment view on Samsara’s growth trajectory, profitability, balance sheet health, and competitive positioning.
Key Performance Indicators
QoQ: -80.62% | YoY:49.61%
QoQ: -97.47% | YoY:60.70%
QoQ: -95.98% | YoY:61.00%
Key Insights
Revenue: $366.884M, up 31% YoY; gross margin (GAAP) 77.33%; non-GAAP gross margin 79%; operating loss $33.255M, margin -9.06%; net income -$22.121M, EPS -$0.039. ARR: $1.54B, up 31% YoY; CC growth 32%. Customers with ARR >$100k: 2,638, up 35% YoY, with 154 new such customers in the quarter. ARR per 100k+ customer: $338k; mix of $100k+ ARR customers: 58% (vs 56% YoY). 95% of $100k+ ARR customers and 85% of core customers subscribe to 2+ products; 66% of $100k+ ARR customers and 38% of core cus...
Financial Highlights
Revenue: $366.884M, up 31% YoY; gross margin (GAAP) 77.33%; non-GAAP gross margin 79%; operating loss $33.255M, margin -9.06%; net income -$22.121M, EPS -$0.039. ARR: $1.54B, up 31% YoY; CC growth 32%. Customers with ARR >$100k: 2,638, up 35% YoY, with 154 new such customers in the quarter. ARR per 100k+ customer: $338k; mix of $100k+ ARR customers: 58% (vs 56% YoY). 95% of $100k+ ARR customers and 85% of core customers subscribe to 2+ products; 66% of $100k+ ARR customers and 38% of core customers subscribe to 3+ products. Net dollar retention (NDR): ~115%. Non-GAAP margins and cash flow: gross margin 79% (quarterly record), operating margin 14%, adjusted free cash flow margin 12%. Cash flow: operating cash flow $52.6M; capex $6.92M; free cash flow $45.69M; net change in cash $35.09M; cash at end $280.89M. Guidance: Q2 revenue $371–$373M; FY26 revenue $1.547–$1.555B; non-GAAP operating margin ~13%; non-GAAP EPS $0.39–$0.41.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
366.88M |
30.69% |
5.95% |
| Gross Profit |
283.72M |
33.76% |
6.67% |
| Operating Income |
-33.26M |
49.61% |
-80.62% |
| Net Income |
-22.12M |
60.70% |
-97.47% |
| EPS |
-0.04 |
61.00% |
-95.98% |
Management Commentary
- AI-enabled safety and maintenance: Samsara emphasizes AI-driven safety alerts, intelligent safety inbox, and proactive maintenance workflows as core value levers for reducing risk and costs. Quote: "Our platform provides comprehensive AI alerts covering a wide range of safety concerns... intelligent safety inbox and AI-powered insights give our customers a smarter way to identify risk and coach drivers based on patterns, not just incidents."
"Samsara delivered a strong Q1 of our new fiscal year, surpassing $1.5 billion in ARR. We ended Q1 with $1.54 billion in ARR, growing 31% year-over-year adjusted for constant currency."
— Sanjit Biswas
"Q1 ending ARR was $1.54 billion, growing 31% year-over-year, both as reported and in constant currency."
— Dominic Phillips
Forward Guidance
- Outlook acknowledges macro uncertainty (tariff-related spend shifts) but remains constructive on durable growth driven by enterprise customers, multi-product adoption, and an expanding international footprint. Investors should monitor: tariff policy and related capex timing, pipeline conversion into revenue, OEM ecosystem expansion (potential margin upside if OEM data connectivity reduces hardware needs), and ongoing international monetization, especially in Europe. Management stresses the trajectory remains funded by strong ARR growth, high attach rates, and scalable software margins.