Asana's Q2 2026: Contradictions on AI Studio Growth, Renewals, and Demand Outlook

The above is the analysis of the conflicting points in this earnings call

Date of Call: None provided

Financials Results

• Revenue: $196.9M, up 10% YOY (9.4% constant currency); exceeded top-end guidance by ~1%
• EPS: $0.06 per diluted share (non-GAAP)
• Gross Margin: 90%, held steady; expected to maintain through FY26
• Operating Margin: 7% (non-GAAP), up ~1,600 bps YOY; ~240 bps above midpoint of guidance

Guidance:

• Q3 revenue $197.5M–$199.5M (+7.4%–8.5% YOY).
• Q3 non-GAAP operating income $12M–$14M (OM 6%–7%); EPS $0.06–$0.07 (244M shares).
• FY26 revenue $780M–$790M (+8%–9% YOY; ~50 bps FX tailwind).
• FY26 non-GAAP operating income $46M–$50M (OM ~6%); EPS $0.23–$0.25 (243M shares).
• Gross margin to remain ~90% in FY26; sequential OM expansion; Q4 OM above FY average.
• Outlook reflects SMB top-of-funnel AI-search headwinds and potential tech downgrades; macro slightly better.

Business Commentary:

• Revenue Growth and AI Integration:
• Asana reported revenue of $196.9 million for Q2, up 10% year over year, exceeding the top end of its guidance.

• This growth was driven by the expansion of AI Studio ARR and strong contributions from all customer cohorts and geographies.

• Operating Margin Expansion:

• Asana achieved a non-GAAP operating margin of 7%, expanding nearly 1,600 basis points year over year.

• The improvement was attributed to efficient scaling, profitable growth, and a reduction in R&D and sales and marketing expenses.

• Customer Growth and Retention:

• The number of $100,000,000+ customers grew by 19% year over year, with an overall customer growth rate that remained healthy.

• This was due to strong momentum in AI Studio adoption and improved customer health initiatives, including Foundational Service Plans.

• International Revenue Expansion:

• International revenue increased by 13% year over year, with Japan as a fast-growing market, where one customer's footprint grew nearly 70%.

• This growth is attributed to increasing global demand for Asana's platform, particularly in EMEA and Japan.

• Challenges in Small Business Segment:

• Despite double-digit growth, Asana's SMB segment is facing pressures due to evolving top-of-funnel dynamics and search landscape changes.
• The company is countering these pressures by focusing on higher-quality traffic, improving conversion rates, and enhancing AI-driven self-service experiences.

Sentiment Analysis:

• Beat on revenue (+10% YOY) and delivered 7% non-GAAP operating margin (+~1,600 bps YOY). Management highlighted improving NRR in-quarter and strong AI Studio momentum. However, guidance embeds risks: potential downgrade pressure in H2, heavier renewal calendar in tech, and SMB top-of-funnel headwinds from AI-driven search. CFO: “we do see a possibility of reverting back to Q1 levels” for NRR; “AI search has disrupted some of the low intent traffic industry wide.”

Q&A:

• Question from Brent Bracelin (Piper Sandler): Why Asana, why now, and any surprises since joining?
  Response: AI’s enterprise productivity unlock will come from human‑AI collaboration; Asana’s workflow context positions it to lead, and Dan will focus execution to capitalize.

• Question from Alex Zukin (Wolfe Research): How scalable is the AI Studio use case at the AI foundation model customer, and what’s the demand environment?
  Response: AI Studio use cases are repeatable and expanding; demand is stable with continued buyer scrutiny, while SMB top‑of‑funnel faces LLM search headwinds but conversions are improving.

• Question from Steve Enders (Citi): How are SEO/LLM headwinds and potential downgrades reflected in the outlook?
  Response: H2 guidance already includes SMB AI‑search headwinds; Q2 NRR improved but could revert given heavier H2 renewals; Asana is rolling out AI‑driven self‑serve, content, and personalization to mitigate.

• Question from Matt Bilak (Bank of America): Visibility into large tech renewals and AI Studio as a lever to prevent down-sell?
  Response: Renewal discipline improved and AI Studio plus FSPs are boosting account health; excluding one large downgrade, NRR would be ~50 bps higher.

• Question from Rishi (RBC): Can you productize collaborative AI via templates/playbooks and drive thought leadership?
  Response: Asana will deliver context‑aware agents (AI teammates) on the WorkGraph to drive real enterprise productivity and aims to lead thought leadership on the agentic enterprise.

• Question from Lucky Schreiner (D.A. Davidson): Are partners contributing more with AI Studio use cases and in consolidation deals?
  Response: Yes—partner certifications on AI Studio are increasing; partner‑managed accounts show higher NRR and partners are key contributors in consolidation wins.

• Question from Kincaid (for Pat Walravens) (Citizens Bank): How will you measure AI Studio success over the next 12 months?
  Response: Focus on credit consumption and conversion from Basic/self‑serve to paid (Plus/Pro), plus AI Studio’s role in mitigating downgrades; ARR impact should be more meaningful in FY27.

• Question from Jackson Ader (KeyBanc Capital Markets): How are tech renewals trending vs last year, and was hiring timing a conscious choice?
  Response: Tech renewals are healthier than a year ago due to better discipline and consolidation favoring Asana; hiring slipped to H2 due to timing, not a strategic pullback.

• Question from John (for Brent Thill) (Jefferies): What differentiates Asana’s AI approach, and where do you expect downgrade pressure?
  Response: WorkGraph context provides the guardrails AI needs to execute workflows; H2 has more, smaller tech downgrades given a larger renewal base.

• Question from Josh Baer (Morgan Stanley): How is AI Studio sold—back to base or new logos—and is demand inbound or outbound?
  Response: Two motions: self‑serve for SMB/corporate and expansion into installed-base ‘builders’; also landing new logos seeking AI‑driven workflows, with initial emphasis on existing customers.

• Question from Taylor McGinniss (UBS): Early 3Q demand trends across enterprise/SMB and potential offsets to SEO headwinds?
  Response: Demand is similar to last quarter; new business activity is healthy, but SMB is tempered by top‑of‑funnel pressure; multiproduct strategy supports H2 execution.