By Kit Norton and Nate Wolf

Samsara stock edged higher Friday after the software company gave a surprising outlook that overshadowed its solid financials.

Shares were up 0.2% at $35.29 -- breaking a three-day losing streak. It's up less than 1% this year.

For its fiscal 2027 first quarter, which ended May 2, the company posted adjusted earnings of 17 cents a share -- up from 11 cents a year ago. Wall Street expected 13 cents. Revenue grew 31% to $478.8 million, handily beating the analyst call for $455.2 million.

The company's annual recurring revenue grew 30% to $1.99 billion, slightly beating analyst expectations of $1.97 billion. It was Samsara's fifth straight quarter with revenue growth above 28%.

"For us, it's about consistency," CEO Sanjit Biswas told Barron's. "The operations footprint is so big that, you know, there's just a huge market ahead of us."

Samsara makes technology that connects physical operations like construction and freight.

In its fiscal second quarter, the company expects earnings of 15 cents to 16 cents on revenue in the range of $482 million to $484 million. That guidance essentially matches Wall Street's forecast of 15 cents and $480 million, according to FactSet.

Samsara also raised its full-fiscal year outlook, predicting profit of 70 cents to 72 cents and revenue of $2.005 billion to $2.013 billion. That's up from the company's previous guidance of 65 cents to 69 cents on sales of $1.965 billion to $1.975 billion. Analysts expect 68 cents and $1.97 billion.

Samsara is less vulnerable to artificial intelligence than more traditional enterprise-software companies, which often operate on seat-based models that can be replaced over time by AI tools.

Customers in heavy industry tend to be limited by labor supply, Biswas said, giving Samsara an opportunity to help them automate tasks that weren't before.

"These customers are really busier than I've ever seen them before," Biswas added, noting that many customers are involved in data-center construction or infrastructure modernization. "That theme, it doesn't seem like a one-quarter theme."

Write to Kit Norton at kit.norton@barrons.com and Nate Wolf at nate.wolf@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 05, 2026 13:11 ET (17:11 GMT)

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