Asana 2026 Q1 Earnings Improves Net Income by 39.3%
Daily EarningsTuesday, Jun 3, 2025 11:24 pm ET
42min readAsana (ASAN) reported its fiscal 2026 Q1 earnings on June 3, 2025. Results showed a positive trajectory with a 9% year-over-year revenue increase to $187.3 million, exceeding expectations. The company achieved its first non-GAAP operating profit, marking a significant milestone in its financial performance. raised its guidance for the fiscal year, projecting revenues between $775 million and $790 million, with an updated non-GAAP operating margin guidance of at least 5.5%.
Revenue
Total revenue for Asana increased by 8.6% to $187.27 million in Q1 2026, compared to $172.45 million in Q1 2025.
Earnings/Net Income
Asana's losses narrowed significantly, with earnings per share improving to a loss of $0.17 in Q1 2026 from a loss of $0.28 in Q1 2025, representing a 39.3% improvement. The company's net loss reduced to $40.02 million in Q1 2026, a 37.2% decrease from the $63.72 million net loss in Q1 2025. The EPS showed a positive trend as losses were significantly reduced.
Post-Earnings Price Action Review
The strategy of purchasing stock following a revenue miss and holding for 30 days has historically underperformed. Backtesting results revealed a substantial loss of 82.86%, with an excess return of -111.91% and a Sharpe ratio of -0.46. These figures indicate that this approach failed to generate any positive returns or provide risk-adjusted benefits. The analysis suggests that this strategy may not be a viable option for investors seeking to capitalize on short-term price movements post-earnings announcements. Instead, it highlights the importance of carefully evaluating earnings outcomes and market conditions before making investment decisions in Asana stock.
CEO Commentary
Dustin A. Moskovitz, Co-Founder, President, CEO & Chair, highlighted Q1 as a milestone quarter, achieving non-GAAP profitability for the first time with a 9% year-over-year revenue increase. He emphasized the growth of AI Studio, surpassing $1 million in ARR, and noted strong enterprise customer acquisition, with significant growth in customers spending over $100,000. Moskovitz underlined the strategic importance of AI Studio's integration into workflows, expressing optimism about the long-term opportunities with AI Studio and Asana's growth trajectory.
Guidance
For Q2 fiscal 2026, Asana expects revenues between $192 million and $194 million, reflecting 7% to 8% year-over-year growth. The company anticipates non-GAAP operating income between $8 million and $10 million, corresponding to an operating margin of 4% to 5%. For the full year, revenue guidance is updated to $775 million to $790 million, indicating 7% to 9% year-over-year growth, with a raised full-year non-GAAP operating margin guidance to at least 5.5%. The guidance accounts for potential macroeconomic risks affecting customer procurement and renewal activities.
Additional News
In recent weeks, Asana has made notable strategic moves. On April 17, 2025, the company announced the appointment of Marc Boroditsky to its Board of Directors, bringing significant go-to-market expertise from high-growth SaaS companies like Cloudflare and Twilio. This appointment is expected to enhance Asana's strategic focus on enterprise sales and self-service businesses. Additionally, Asana launched its Smart Workflow Gallery on May 6, 2025, a collection of prebuilt, AI-powered workflows designed to enhance human and AI coordination across organizations, further complementing Asana's AI Studio. Lastly, on May 23, 2025, Asana announced its upcoming presentations at major investor conferences, signaling continued engagement with the investment community and showcasing its strategic direction.
Revenue
Total revenue for Asana increased by 8.6% to $187.27 million in Q1 2026, compared to $172.45 million in Q1 2025.
Earnings/Net Income
Asana's losses narrowed significantly, with earnings per share improving to a loss of $0.17 in Q1 2026 from a loss of $0.28 in Q1 2025, representing a 39.3% improvement. The company's net loss reduced to $40.02 million in Q1 2026, a 37.2% decrease from the $63.72 million net loss in Q1 2025. The EPS showed a positive trend as losses were significantly reduced.
Post-Earnings Price Action Review
The strategy of purchasing stock following a revenue miss and holding for 30 days has historically underperformed. Backtesting results revealed a substantial loss of 82.86%, with an excess return of -111.91% and a Sharpe ratio of -0.46. These figures indicate that this approach failed to generate any positive returns or provide risk-adjusted benefits. The analysis suggests that this strategy may not be a viable option for investors seeking to capitalize on short-term price movements post-earnings announcements. Instead, it highlights the importance of carefully evaluating earnings outcomes and market conditions before making investment decisions in Asana stock.
CEO Commentary
Dustin A. Moskovitz, Co-Founder, President, CEO & Chair, highlighted Q1 as a milestone quarter, achieving non-GAAP profitability for the first time with a 9% year-over-year revenue increase. He emphasized the growth of AI Studio, surpassing $1 million in ARR, and noted strong enterprise customer acquisition, with significant growth in customers spending over $100,000. Moskovitz underlined the strategic importance of AI Studio's integration into workflows, expressing optimism about the long-term opportunities with AI Studio and Asana's growth trajectory.
Guidance
For Q2 fiscal 2026, Asana expects revenues between $192 million and $194 million, reflecting 7% to 8% year-over-year growth. The company anticipates non-GAAP operating income between $8 million and $10 million, corresponding to an operating margin of 4% to 5%. For the full year, revenue guidance is updated to $775 million to $790 million, indicating 7% to 9% year-over-year growth, with a raised full-year non-GAAP operating margin guidance to at least 5.5%. The guidance accounts for potential macroeconomic risks affecting customer procurement and renewal activities.
Additional News
In recent weeks, Asana has made notable strategic moves. On April 17, 2025, the company announced the appointment of Marc Boroditsky to its Board of Directors, bringing significant go-to-market expertise from high-growth SaaS companies like Cloudflare and Twilio. This appointment is expected to enhance Asana's strategic focus on enterprise sales and self-service businesses. Additionally, Asana launched its Smart Workflow Gallery on May 6, 2025, a collection of prebuilt, AI-powered workflows designed to enhance human and AI coordination across organizations, further complementing Asana's AI Studio. Lastly, on May 23, 2025, Asana announced its upcoming presentations at major investor conferences, signaling continued engagement with the investment community and showcasing its strategic direction.
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