What Happened?
Shares of internet of Things company Samsara (NYSE: IOT) fell 5.1% in the afternoon session after the company reported mixed first quarter 2025 (fiscal 2026) results with billings falling below expectations. The weakness was also evident in its slower sales forecast, which indicates a noticeable decline from the better growth rate it just delivered.
On the other hand, Samsara provided optimistic EPS guidance for the next quarter, which beat analysts' expectations. In addition, its EBITDA outperformed Wall Street's estimates by a wide margin. Overall, we think this was a mixed yet weaker quarter.
The shares closed the day at $45.10, down 4.8% from previous close.
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What The Market Is Telling Us
Samsara’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 17.2% on the news that the company reported a "beat and raise" quarter. Samsara beat analysts' revenue, adjusted operating income, and EPS expectations this quarter.
Notably, the top line grew by 37% year on year, benefiting from expansion from existing customers and new business wins.
Looking ahead, it raised its full-year guidance for revenue, adjusted operating income, and EPS. Overall, this was a splendid quarter.
Samsara is up 1.8% since the beginning of the year, but at $44.78 per share, it is still trading 26.5% below its 52-week high of $60.96 from February 2025. Investors who bought $1,000 worth of Samsara’s shares at the IPO in December 2021 would now be looking at an investment worth $1,813.
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