Samsara, Inc. (IOT) experienced a sharp after-hours plunge of 5.68% following the release of its first-quarter financial results for fiscal year 2027. The move occurred in extended trading after the market close.
The company reported strong Q1 performance, with adjusted earnings per share of $0.17, surpassing the IBES estimate of $0.13. Revenue for the quarter was $478.8 million, also beating the estimate of $455.2 million. The adjusted operating margin for Q1 was 19%.
However, investor sentiment turned negative as the company provided its outlook for the second quarter. Samsara guided for an adjusted operating margin of 18% for Q2, which represents a sequential decline from the 19% achieved in the first quarter. While the company's revenue guidance for Q2 and the full fiscal year came in above analyst estimates, the projected contraction in operating margins appears to have triggered the sell-off in the after-hours session.