Work management platform Asana (NYSE:ASAN) reported revenue ahead of Wall Street's expectations in Q2 CY2026, with sales up 9.9% year on year to $216.4 million. The company expects next quarter's revenue to be around $218 million, close to analysts' estimates. Its non-GAAP profit of $0.10 per share was 14.3% above analysts' consensus estimates.
Is now the time to buy ASAN? Find out in our full research report (it's free).
Asana (ASAN) Q2 CY2026 Highlights:
-
Revenue:$216.4 million vs analyst estimates of $214.3 million (9.9% year-on-year growth, 1% beat)
-
Adjusted EPS:$0.10 vs analyst estimates of $0.09 (14.3% beat)
-
Adjusted Operating Income:$21.77 million vs analyst estimates of $19.24 million (10.1% margin, 13.1% beat)
-
The company slightly lifted its revenue guidance for the full yearto $861 million at the midpoint from $859.5 million
-
Management reiterated its full-year Adjusted EPS guidanceof $0.37 at the midpoint
-
Operating Margin:-19%, up from -25.1% in the same quarter last year
-
Customers:26,778 customers paying more than $5,000 annually
-
Net Revenue Retention Rate:97%
-
Annual Recurring Revenue:$879.9 million (10.5% year-on-year growth, beat)
-
Billings:$244 million at quarter end, up 10.8% year on year
-
Market Capitalization:$2.33 billion
StockStory's Take
Asana's second quarter results were met with a negative market reaction, despite surpassing Wall Street revenue and non-GAAP profit expectations. Management attributed the quarter's performance to accelerating adoption of its AI-driven products, particularly AI Studio and AI Teammates, which have driven deeper engagement and stronger net revenue retention among larger customers. CEO Daniel Rogers emphasized that, "customers adopting AI Studio and AI Teammates are engaging more deeply, retaining better, and expanding faster than the broader customer base." The company also highlighted improved retention across all cohorts, with notable strength in upmarket accounts and continued expansion beyond its traditional seat-based model.
Looking ahead, Asana's guidance is shaped by the rollout of its Agentic Work Management (AWM) platform and a broader integration of AI capabilities across its product suite. Management expects these initiatives to create new vectors for growth, emphasizing that seeding customers with AI Teammates and Dash is intended to drive higher adoption, consumption, and long-term retention. CFO Aziz Megji pointed out, "We've made significant investment in our monetization infrastructure and in-product experience, enabling AI native capabilities such as usage metering, overages, and consumption-based billing at scale." However, the company also acknowledged ongoing pressures in its product-led growth (PLG) segment and short-term gross margin headwinds as it transitions to new packaging and consumption-based revenue recognition.
Key Insights from Management's Remarks
Management highlighted accelerating upmarket momentum, robust AI product adoption, and strategic product launches as primary drivers of recent performance, while also acknowledging ongoing PLG-related headwinds and the impact of transitioning to consumption-based revenue.
-
AI-driven upsell momentum:AI Studio and AI Teammates contributed to 25% of net new annual recurring revenue (ARR), up from 17% last quarter, with over a quarter of customers spending more than $100,000 annually now adopting AI products. Management cited these products as mitigating seat contraction risk, especially in large accounts operating with smaller workforces.
-
Expansion beyond seat-based revenue:The shift from traditional seat-based pricing to consumption and outcome-oriented models, particularly through Agentic Work Management, is enabling Asana to align revenue more closely with customer value delivered. This transition is expected to drive retention and expansion even when customer headcount remains flat or decreases.
-
Broadened customer base:Non-technology verticals outpaced overall company growth, and Asana secured new customers across diverse industries, including telecommunications, insurance, professional services, and luxury retail. International wins, such as Darktrace and Delivery Hero, further broadened the company's enterprise reach.
-
PLG (Product-Led Growth) challenges:Management noted continued headwinds in the self-serve PLG segment, particularly among smaller customers, which has weighed on company-wide net revenue retention and compounded revenue growth pressure each quarter.
-
Gross margin and cost optimization:Higher AI infrastructure and compute costs, along with the addition of StackAI (a recent acquisition with lower gross margins), contributed to gross margin contraction. However, management is leveraging AI-driven productivity and a more efficient global workforce to maintain expense discipline and support margin improvement over time.
Drivers of Future Performance
Asana's outlook hinges on driving deeper AI adoption, optimizing customer mix, and overcoming headwinds from its self-serve and packaging transitions.
-
AI product expansion:Management expects the embedding of AI Teammates and Dash within all paid package tiers to accelerate adoption, increase engagement, and drive new consumption-based revenue streams. The company believes this approach will improve seat retention and foster deeper customer relationships over time.
-
Product-led growth recovery:Addressing the headwinds in the PLG segment remains a strategic focus. Efforts include targeting higher-value customer profiles, verticalizing marketing, and introducing industry-specific templates and use cases, with the goal of lifting net retention rates among smaller accounts by mid-next year.
-
Gross margin and packaging transition:Asana anticipates short-term gross margin pressure due to upfront AI infrastructure investments and the shift to consumption-based revenue recognition, but management expects these impacts to normalize by the end of the year as customer adoption grows and cost optimizations take effect.
Catalysts in Upcoming Quarters
In the coming quarters, our analyst team will track (1) the pace of customer adoption for Agentic Work Management and its embedded AI features, (2) the impact of targeted PLG initiatives on net revenue retention among smaller customers, and (3) the margin trajectory as AI infrastructure investments and consumption-based billing scale. We will also monitor initial revenue contributions from new products as they move from early access to general availability.
Asana currently trades at $8.79, down from $10.15 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it's free for active Edge members) .
Stocks That Trumped Tariffs
ALSO WORTH WATCHING: Top 5 Momentum Stocks.The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE .
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today .
