Shares of Samsara Inc. (IOT) plummeted 12.17% in a 24-hour period following the release of its first-quarter fiscal year 2026 financial results. Despite reporting better-than-expected earnings and revenue, the company's forward guidance appears to have fallen short of investor expectations, triggering a significant sell-off.
Samsara reported adjusted earnings per share of $0.11, surpassing the analyst estimate of $0.06, while revenue came in at $366.9 million, beating expectations of $351.4 million. The company's Q1 adjusted gross margin was strong at 79%, with an adjusted operating margin of 14%. However, Samsara's outlook for the second quarter and full fiscal year 2026 seems to have disappointed investors, despite being raised from previous estimates.
For Q2, Samsara expects revenue between $371-373 million and adjusted EPS of $0.06-0.07. The full-year guidance projects revenue of $1.547-$1.555 billion and adjusted EPS of $0.39-$0.41. While these figures represent growth, they indicate a deceleration to 24% year-over-year growth in Q2, down from 31% in Q1. This moderation in growth trajectory, coupled with high investor expectations following the stock's recent outperformance, likely contributed to the sharp decline in share price.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.