Samsara’s Q4 Revenue Growth Slowdown, Weak Q1 Guidance Send Stock Sharply Lower After-Hours: Retail Mood Turns Buoyant

The top- and bottom-line results exceeded the high end of the guidance issued in early December, but the topline growth decelerated notably from the previous quarter’s 36% growth.

Samsara, Inc. (IOT), a connected operations platform provider, posted a fourth-quarter beat on Thursday, although revenue growth slowed sharply. The current quarter guidance came in below expectations, sending the stock lower in the after-hours session.

The San Francisco, California-based company reported adjusted earnings per share (EPS) of $0.11 for the fourth quarter of the fiscal year 2025, up from the year-ago quarter’s $0.04 and bettering the Finchat-compiled consensus estimate of $0.07.

Revenue jumped 25% year over year (YoY) to $346.3 million versus the $335.33-million consensus estimate.

Both metrics exceeded the high-end of the guidance issued in early December but the topline growth decelerated notably from the previous quarter’s 36% growth.

Annual recurring revenue (ARR), a key operational metric, jumped 33% to $1.46 billion. The growth marked a slight slowdown from the third quarter’s 35%.

The non-GAAP gross and operating margins expanded YoY to 77% and 16%, respectively, from 75% and 5%.

CEO Sanjit Biswas said, “Fiscal year 2025 was another year of durable and efficient growth.”

He noted that the company grew its $100,000+ ARR customer count 36% YoY to 2,506.

Samara expects first quarter adjusted EPS of $0.05 to $0.06 and revenue of $350 million to $352 million. Analysts, on average, estimate $0.05 and $351.31 million, respectively.

The company initiated its fiscal year 2026 guidance of $0.32 to $0.34 in adjusted EPS, above the estimated $0.28, and $1.523 billion to $1.533 billion in revenue, aligning with the consensus of $1.528 billion

On Stocktwits, retail sentiment toward Samsara stock reversed to ‘extremely bullish’ (83/100) from the ‘bearish’ mood that prevailed a day ago. The message volume surged to ‘extremely high’ levels as trader chatter grew amid the earnings release.

A bullish watcher said the stock has a strong support at the $40 level despite dropping below the mark in the after-hours session.

Samsara stock ended the after-hours session down 5.56% at $39.55. The stock is down over 4% year-to-date.

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