Samsara Inc. (Samsara (IOT)) reported first-quarter results that beat Wall Street estimates and raised its full-year outlook, but the stock still dipped in premarket trading Friday. Sometimes the market just wants more, even when a company delivers a solid beat.

The connected operations platform company posted adjusted earnings of 17 cents per share, topping the analyst consensus of 13 cents. Revenue climbed 31% year over year to $478.8 million, well above the $455.2 million estimate. On a constant-currency basis, revenue grew 29%.

Adjusted operating margin expanded to 19% from 14% a year earlier, thanks to improved efficiency across sales and marketing, R&D, and general expenses. That's not just growth—it's profitable growth.

CEO and Co-founder Sanjit Biswas said Samsara delivered a strong first quarter, with annual recurring revenue nearing $2 billion and the company remaining profitable on a GAAP earnings-per-share basis for a third straight quarter. He noted that growing labor constraints across customers' operations are driving demand for the company's AI-powered tools, which automate tasks, improve productivity, and help physical industries run more efficiently.

“The AI data center boom is creating massive demand across the physical economy,” Biswas said. “Our customers are facing labor shortages and need to do more with less. Our platform helps them automate, optimize, and scale.”

Enterprise Customer Growth Accelerates

Annual recurring revenue reached approximately $2 billion, up 30% from a year earlier. Net new ARR totaled $100.7 million, also rising 30% (27% on a constant-currency basis).

The real story is in the large customers. ARR from customers spending more than $100,000 annually increased 37% to $1.2 billion, marking the third consecutive quarter of accelerating growth. ARR from customers generating more than $1 million annually surged 62%, extending a four-quarter acceleration trend. That's a sign that Samsara's platform is becoming indispensable for big operators.

Emerging products contributed more than 20% of net new annual contract value for the second straight quarter. Samsara signed 11 new deals worth more than $1 million in net new annual contract value—its second-strongest quarter on record.

The company ended the quarter with 3,363 customers generating more than $100,000 in ARR and 190 customers generating more than $1 million in ARR.

Guidance Raised

Samsara raised its fiscal 2027 adjusted earnings outlook to 70 cents to 72 cents per share from a prior range of 65 cents to 69 cents. The updated forecast exceeds analyst expectations of 68 cents.

The company also increased its fiscal 2027 revenue guidance to $2.005 billion to $2.013 billion, above the Street estimate of $1.971 billion and its previous forecast of $1.965 billion to $1.975 billion.

For the second quarter, Samsara expects adjusted earnings of 15 cents to 16 cents per share on revenue of $482 million to $484 million, both largely in line with or above analyst expectations.

IOT Price Action: Samsara shares were down 2.93% at $34.18 during premarket trading on Friday.