Why Did Samsara Plunge 10.69% Despite Earnings Beat?

On June 6, 2025, Samsara's stock experienced a significant drop of 10.69% in pre-market trading.

Samsara Inc. reported impressive financial results for the first quarter of fiscal year 2026, with earnings and revenue surpassing expectations. The company achieved a non-GAAP EPS of $0.11, exceeding estimates by $0.05. Revenue for the quarter reached $366.9 million, marking a 30.7% year-over-year increase. This strong performance was driven by a 31% year-over-year growth in annual recurring revenue (ARR), which surpassed $1.5 billion.

Despite the positive financial results, Samsara's stock price declined. This drop can be attributed to investor concerns about the company's future growth prospects and the potential impact of foreign exchange headwinds. Additionally, the company's guidance for the second quarter of fiscal year 2026, which projects revenue growth of 24%, may not have met investor expectations.

Analysts remain optimistic about Samsara's future, with an average price target of $48.60, suggesting a potential upside of 2.85% from the current stock price. The company's strong financial performance and positive outlook from analysts indicate that Samsara is well-positioned for continued growth in the coming quarters.