Asana Stock Drops 19% After Weak FY26 Guidance Despite Q1 Beat

Asana Inc. ASAN shares are trading lower Wednesday after the company issued full-year fiscal 2026 guidance that fell well short of Wall Street expectations, overshadowing better-than-expected first-quarter earnings and revenue.

What To Know: The company reported first-quarter earnings of five cents per share, beating the consensus estimate of two cents. Revenue came in at $187.27 million, slightly above the $185.4 million estimate. The company also posted its first positive operating margin in history at 4.3% and announced its largest customer deal ever, with a $100 million contract signed in the quarter.

However, investor focus quickly shifted to the outlook. Asana guided full-year adjusted earnings to 22 cents per share, below the 33-cent estimate. It also lowered the midpoint of its revenue range to $782.5 million, compared to analyst expectations of $857.76 million. The company cited macroeconomic risks and a major deal renewal that stretched the contract term to three years but lowered the annual value.

The weaker guidance raised concerns among analysts. RBC reiterated its Underperform rating with a $10 target, noting that net revenue retention fell and billings missed expectations. JMP pointed out that while year-over-year revenue was up 9%, it declined 10% sequentially.

Despite some optimism around margin improvements and AI product traction, analysts remain cautious. Piper Sandler raised its target from $17 to $19, citing operating leverage, while JMP and KeyBanc flagged slowing momentum and macro uncertainty.

ASAN Price Action: Asana shares were down 19.7% at $15.26 at the time of writing, according to Benzinga Pro.

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