Samsara (NYSE:IOT) reported a strong start to fiscal 2027, with executives highlighting accelerating growth among large customers, expanding adoption of emerging products and continued profitability during the company’s first-quarter earnings call.
Chief Executive Officer and Co-founder Sanjit Biswas said Samsara ended the quarter with nearly $2 billion in annual recurring revenue, up 30% year over year. The company added $101 million in net new ARR, also up 30% year over year, or 27% in constant currency. Biswas said the company achieved its third consecutive quarter of GAAP earnings-per-share profitability.
Large Customers Drive Growth
Samsara continued to see strong momentum from its largest customers. Biswas said the company now has more than $1.2 billion in ARR from customers spending $100,000 or more annually, up 37% year over year and accelerating for the third consecutive quarter. The company added 169 customers with $100,000 or more in ARR and 15 customers with $1 million or more in ARR during the quarter.
CFO Dominic Phillips said Samsara ended the quarter with 3,363 customers generating at least $100,000 in ARR and 190 customers generating at least $1 million in ARR. ARR from $1 million-plus customers increased 62% year over year, marking the fourth consecutive quarter of sequential acceleration.
Phillips said 100,000-plus ARR customers now represent 62% of total ARR, up from 58% a year ago and 56% two years ago. He also said the company signed 11 transactions with more than $1 million in net new annual contract value, its second-highest quarter ever by that measure.
Large customer wins cited on the call included Hertz, Foundation Building Materials, the State of Connecticut and one of the world’s largest pizza companies. Phillips also highlighted a deeper relationship with the world’s largest food service distributor, which replaced its incumbent telematics provider with Samsara and added Asset Gateway, Commercial Navigation and Connected Workflows.
Revenue Rises 31%, Guidance Raised
Phillips said first-quarter revenue was $479 million, up 31% year over year, or 29% in constant currency. Non-GAAP operating margin was 19%, up five percentage points year over year, and free cash flow margin was 15%, up three percentage points. He said the company surpassed the “rule of 40” for the 15th consecutive quarter.
GAAP EPS was positive $0.08. Phillips said that figure included a $30 million arbitration award from one of Samsara’s lawsuits against Motive for claims including breach of contract, fraud, unfair competition and false advertising. He added that GAAP EPS would still have been positive excluding the award.
For the second quarter, Samsara expects revenue between $482 million and $484 million, representing 23% to 24% year-over-year growth, or 22% to 23% in constant currency. The company expects non-GAAP operating margin of 18%, non-GAAP EPS of $0.15 to $0.16 and GAAP profitability.
For fiscal 2027, Samsara expects revenue between $2.005 billion and $2.013 billion, representing 24% growth, or 23% to 24% in constant currency. The company expects non-GAAP operating margin of 20%, non-GAAP EPS of $0.70 to $0.72 and GAAP profitability for the full year.
Emerging Products Gain Traction
Executives emphasized that Samsara’s growth is increasingly tied to customers expanding across its platform. Phillips said 96% of customers with at least $100,000 in ARR subscribe to two or more products, and 70% subscribe to three or more. In the quarter, nine of the top 10 net new ACV deals included two or more products, and four included four or more.
Emerging products contributed more than 20% of net new ACV for the second consecutive quarter. Phillips said seven of the top 10 net new ACV transactions included an emerging product, and 42 transactions included more than $100,000 in emerging product net new ACV.
Biswas highlighted Connected Asset Maintenance as an area of momentum, saying many customers still rely on outdated manual systems to manage maintenance. He said the product helps customers shift from time-based or mileage-based maintenance schedules to a data-driven approach using diagnostics, fault code intelligence, work orders, warranty and inventory management and technician workflows.
Samsara signed its largest Connected Asset Maintenance deal to date with Hertz, which Phillips described as a software-only deployment across Hertz’s North American vehicle fleet. In response to an analyst question, Biswas said the relationship began around Hertz’s maintenance needs, though he noted there may be other opportunities across the company’s operations.
AI and Physical Operations in Focus
Biswas framed Samsara’s opportunity around what he called a transition “from bits to atoms,” applying AI and intelligent systems to vehicles, equipment, job sites and frontline workers. He said customers in asset-heavy and labor-intensive industries are seeing demand from infrastructure build-outs, AI data centers, grid modernization and public infrastructure investments.
The company is investing in operational AI, including Waste Intelligence, Ground Intelligence and Ridership Management, which it introduced at a public sector customer event in Chicago. Biswas said Waste Intelligence is designed to support service verification, overfill detection and, in development, contamination detection. Ground Intelligence uses dashcam, multicam and telematics data to identify potholes and road defects.
On pricing, Biswas said some products, such as Waste Intelligence, are additional SKUs sold alongside existing products, while Ground Intelligence is priced on a per-mile basis as a data offering. He said Samsara is also testing agents and expects that, over time, a consumption-based model may be used for some agentic capabilities.
Q&A Highlights: Margins, Supply Chain and Macro Trends
Analysts asked about gross margins, component supply and the company’s ability to sustain growth. Phillips said Samsara is spending more on AI and cloud to support new products and features but expects to offset some of those costs through other cost-of-goods optimizations and operating expense reallocations. He said gross margins are expected to remain “roughly flat” for fiscal 2027, while operating margin is expected to improve.
On memory and component supply, Phillips said DRAM and NAND markets are tighter and prices are increasing, but Samsara has not had a significant issue securing supply. He said visibility is not as strong as in the past, but the company believes it can find the supply needed to meet customer demand for the rest of the fiscal year.
Asked about macro conditions, Biswas said Samsara’s customers are “busier than ever,” particularly in areas such as construction, data centers, infrastructure modernization and the public sector. He acknowledged higher fuel costs for some customers but said they are using Samsara’s telematics products to optimize areas such as idling and routes.
Phillips said the company sees multiple growth drivers, including large-customer momentum, emerging products and international expansion. International markets accounted for 18% of net new ACV in the quarter, tied for a quarterly record, with Europe contributing a record amount of net new ACV mix.
About Samsara (NYSE:IOT)
Samsara develops an industrial Internet of Things (IoT) platform designed to help organizations monitor, manage, and optimize physical operations. The company combines connected hardware — including telematics devices, GPS trackers, dash cameras, and environmental sensors — with cloud-based software to provide real-time visibility into vehicles, mobile equipment, and fixed assets. Its software offers tools for fleet management, driver and worker safety, asset tracking, compliance (including electronic logging), maintenance scheduling, and operational analytics.
The Samsara platform emphasizes integration of live data streams with analytics and workflow features to drive efficiency and safety across industries that rely on dispersed equipment and mobile workforces.
