Samsara 2026 Q1 Earnings Losses Narrow Significantly

Samsara (IOT) reported its fiscal 2026 Q1 earnings on June 10th, 2025. The company exceeded expectations with a substantial 30.7% increase in total revenue, reaching $366.88 million. This growth was primarily driven by their subscription services, which accounted for $359.60 million of the total revenue. The guidance for Q2 2026 forecasts revenue between $371 million and $373 million, showing confidence in sustained growth. Overall, Samsara's performance indicates a solid trajectory with an optimistic outlook despite market challenges.

Revenue
Samsara reported a robust 30.7% increase in total revenue for 2026 Q1, amounting to $366.88 million. The subscription services segment was the primary driver, contributing $359.60 million, while other revenue sources added $7.28 million, underscoring the strength of their subscription-based business model.

Earnings/Net Income
Samsara achieved a notable improvement in earnings, reducing its net loss to $22.12 million in Q1 2026, compared to a $56.29 million loss in the same quarter of the previous year. This represents a 60.7% reduction in net losses, with EPS improving from a loss of $0.10 to $0.04 per share, highlighting positive financial progress.

Price Action
The stock price of Samsara rose by 3.25% on the latest trading day but experienced an 8.57% decline over the past week and a 3.41% decrease month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Samsara shares when there's a revenue miss and holding them for 30 days has yielded a return of 23.68%, though this falls short of the benchmark return of 29.28%, resulting in an excess return of -5.60%. This approach displayed a CAGR of 6.33%, with a maximum drawdown of -73.99%. Despite these figures, the strategy's Sharpe ratio stands at 0.09, indicating lower risk-adjusted returns, and a volatility measure of 66.92%, reflecting considerable price fluctuations. While the approach offers potential, it also underscores the inherent risks and high volatility associated with Samsara's stock.

CEO Commentary
Samsara's CEO highlighted the company's impressive performance in Q1 2026, with an annual recurring revenue (ARR) growth of 31%, reaching $1.54 billion. The CEO emphasized the addition of 154 new customers generating over $100,000 in ARR, a 35% increase from the previous year. This growth demonstrates the effectiveness of their multi-product strategy, with 95% of these customers utilizing multiple offerings. Despite challenges like extended sales cycles and tariff impacts, the CEO expressed optimism about the future, citing strong customer partnerships and AI-driven innovations as key growth drivers. The leadership remains confident in maintaining momentum and expanding internationally, particularly in Europe.

Guidance
For Q2 2026, Samsara anticipates total revenue between $371 million and $373 million, marking a 24% year-over-year increase. The full fiscal year guidance projects revenue between $1.547 billion and $1.555 billion, with an EPS forecast in the range of $0.39 to $0.41, reflecting sustained confidence in the company's growth trajectory amidst market challenges.

Additional News
In recent weeks, Samsara has been the focus of significant market discussions. On June 6, 2025, shares of Samsara fell 5.1% due to mixed fiscal results, with billings falling short of expectations and a slower sales forecast. Despite this, optimistic EPS guidance helped mitigate concerns. Earlier, on February 26, 2025, analyst ratings initiated Samsara at 'Market Perform', reflecting a neutral stance amid volatile market conditions. Furthermore, Samsara's innovative strides in AI-driven solutions continue to draw attention, highlighting its strategic focus on enhancing operational efficiencies for customers.