Samsara’s stock (NYSE: IOT) heads into today’s earnings print underperforming broader markets, down 20% over the past 12 months, despite a 9.6% bounce YTD. The company reports Q1 FY2027 earnings after today’s closing bell, with expectations pointing to 18% earnings growth and accelerating revenue as the Connected Operations Platform provider enters a new fiscal year riding strong operating leverage momentum from fiscal 2026.
The San Francisco-based fleet management and IoT leader has maintained impressive margin expansion over recent quarters, but investors will be watching closely to see whether Q1 results support the company’s fiscal 2027 guidance for 19% non-GAAP operating margin and 21-22% revenue growth.
The street is looking for EPS of US$0.13, representing 18% growth from the US$0.11 posted in the year-ago quarter. Revenue is expected have grown at a faster rate, with consensus of $455.17 million, a 24% year on year growth rate. For the full fiscal 2027, analysts project earnings of US$0.69 per share on revenue of US$1.97 billion, representing annual growth of 23% and 22% respectively.
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What to watch
The most important metric in this print will be Q1 non-GAAP operating margin and whether Samsara can sustain the trajectory established in fiscal 2026. The company delivered a 17% non-GAAP operating margin for the full fiscal 2026, a sharp improvement from 9% the prior year, and Q4 fiscal 2026 reached 21%.
Management has guided fiscal 2027 operating margin to 19%, but investors will be looking for evidence that Q1 can hold or exceed that level, particularly given the strong leverage demonstrated in Q4.
Large enterprise customer adoption remains a critical revenue driver. In Q2 fiscal 2026, Samsara added 133 new customers contributing more than US$100,000 in annual recurring revenue (ARR), bringing the total to 2,771. ARR from customers in the US$100,000-plus cohort grew 37% year on year to US$1.2 billion.
Growth in this segment matters because larger customers typically adopt multiple Samsara products, improving platform monetisation without proportionally increasing customer acquisition costs.
Another area of focus will be recent product launches and competitive positioning. Samsara swept G2’s Summer 2026 rankings with 23 No. 1 positions across fleet management, asset tracking, fleet maintenance, and related categories, marking seven consecutive quarters at the top. The company also launched three new AI-driven public sector solutions in May 2026: Ground Intelligence for road condition monitoring, Waste Intelligence for service verification, and Ridership Management for school districts and transit agencies.
Adoption rates and early customer feedback on these public sector tools could provide insight into Samsara’s ability to expand beyond traditional fleet management into adjacent government infrastructure markets.
Markets are expecting volatility to be high, with options markets pricing in a move for IOT shares around 13%.
