Investing.com -- Samsara reported upbeat first-quarter fiscal 2027 results on Thursday, with revenue rising 31% and annual recurring revenue (ARR) approaching the $2 billion mark, as demand for its connected operations platform and AI-powered products remained robust.

The industrial software company posted first-quarter revenue of $478.8 million, up from $366.9 million a year earlier, while ARR climbed 30% to $1.99 billion. Net new ARR increased 30% year over year to $100.7 million.

Chief Executive Sanjit Biswas said customers are facing labor constraints and rising demand, creating what he described as a significant opportunity for operational AI and AI agents to automate workflows and improve productivity across physical industries.

Samsara posted a net income was $44.5 million, versus a loss of $22.1 million in the prior-year quarter. Operating income reached $7.2 million, compared with an operating loss of $33.3 million a year earlier.

Adjusted operating income rose to $91.0 million from $51.1 million, while the adjusted operating margin expanded to 19% from 14%. Adjusted free cash flow increased to $73.2 million, representing a 15% margin.

For the second quarter, Samsara forecast revenue of $482 million to $484 million, implying year-over-year growth of 23% to 24%, and projected adjusted earnings of $0.15 to $0.16 per share.

The company also raised its outlook for fiscal 2027, expecting revenue of $2.005 billion to $2.013 billion and adjusted earnings of $0.70 to $0.72 per share. Samsara said it expects to remain GAAP profitable for the full year.

Results included a $30.3 million gain tied to an arbitration award in Samsara’s legal dispute with Motive Technologies, which the company excluded from its non-GAAP results.