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.