Asana (NYSE:ASAN) Posts Earnings Results, Hits Expectations

Asana (NYSE:ASAN) announced its earnings results on Thursday. The company reported $0.10 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.10, FiscalAI reports. Asana had a negative net margin of 18.62% and a negative return on equity of 73.36%. The company had revenue of $216.43 million during the quarter, compared to analyst estimates of $216.23 million. During the same period in the previous year, the business earned $0.06 earnings per share. The firm’s quarterly revenue was up 9.9% compared to the same quarter last year. Asana updated its FY 2027 guidance to 0.370-0.370 EPS and its Q3 2027 guidance to 0.080-0.080 EPS.

Here are the key takeaways from Asana’s conference call:

• Q2 revenue and profitability exceeded expectations: revenue rose 10% year over year to $216.4 million, while non-GAAP operating margin expanded to 10%.
• AI Studio and AI Teammates generated approximately 25% of net new ARR, up from 17% in the prior quarter, and adoption among customers spending over $100,000 reached more than 25%. Management said AI adopters are retaining and expanding faster than the broader customer base.
• Core business health improved, with overall net retention rising to 97%, core-customer and $100,000-plus-customer retention reaching 98%, and current RPO growth accelerating to approximately 11% excluding a prior-year large contract comparison.
• The company expects ongoing pressure from weaker product-led-growth bookings, weighing on revenue growth by about 100 basis points in Q3 and 150 basis points in Q4. The shift to Agentic Work Management and consumption-based AI revenue recognition will also create a $1.2 million second-half revenue-timing headwind and approximately 150 basis points of gross-margin pressure.
• Asana plans to launch Agentic Work Management in mid-September, embedding AI Teammates, AI Studio, and Dash into paid tiers, while Client Management, Service Management, and Command expand into adjacent markets. Management expects limited FY2027 revenue from these newer applications, with a more meaningful contribution anticipated in FY2028.

Asana Stock Down 12.7%

Shares of NYSE ASAN opened at $8.81 on Friday. Asana has a 52 week low of $5.38 and a 52 week high of $15.48. The firm’s fifty day moving average is $8.43 and its 200 day moving average is $7.37. The company has a market cap of $2.03 billion, a price-to-earnings ratio of -13.35 and a beta of 0.95.

Asana News Summary

Here are the key news stories impacting Asana this week:

• Positive Sentiment: Asana reported fiscal second-quarter adjusted EPS of $0.10, ahead of the $0.09 consensus estimate, while revenue of $216.4 million exceeded expectations of $214.2 million and increased 9.9% year over year. Asana Announces Second Quarter Fiscal 2027 Results
• Positive Sentiment: Fiscal 2027 revenue guidance of $858.5 million to $863.5 million was broadly in line with consensus, while the company’s EPS outlook of $0.37 was above the $0.22 analyst estimate. Management also highlighted improving retention, stronger upmarket momentum and growing adoption of its AI products. Asana FY2027 Outlook
• Positive Sentiment: Several analysts raised their valuation targets following the results. RBC increased its target to $9.50 from $8, UBS raised its target to $10 from $8, and Piper Sandler lifted its target to $9 from $7. Citizens JMP maintained an outperform rating with a $15 target. RBC Raises Asana Price Target
• Neutral Sentiment: Asana executives will present at Citi’s Global TMT Conference on September 9 and Piper Sandler’s Growth Frontiers Conference on September 15. These events could provide updates on AI-agent coordination, enterprise demand and retention trends. Asana Investor Events
• Negative Sentiment: The immediate share-price weakness was driven primarily by soft fiscal third-quarter guidance: revenue of $217 million to $219 million is slightly below or near consensus, and investors viewed the outlook as insufficient after the earnings beat. Asana Stock Outlook
• Negative Sentiment: Analysts and investors remain concerned about churn and Asana’s still-negative profitability, creating skepticism that AI momentum will translate into faster durable growth. Asana Churn Analysis

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the company. Barclays cut Asana to an “outperform” rating in a report on Monday, August 24th. Citizens Jmp restated a “market outperform” rating and issued a $15.00 price objective on shares of Asana in a report on Friday. KeyCorp reduced their target price on shares of Asana from $15.00 to $13.00 and set an “overweight” rating on the stock in a report on Friday, May 29th. Royal Bank Of Canada lifted their target price on shares of Asana from $8.00 to $9.50 and gave the stock a “sector perform” rating in a research report on Friday. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Asana in a research note on Wednesday, August 5th. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $9.95.

Insider Activity

In related news, insider Katie Colendich sold 5,242 shares of the firm’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $6.68, for a total value of $35,016.56. Following the sale, the insider directly owned 176,598 shares of the company’s stock, valued at $1,179,674.64. This trade represents a 2.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Veronica Sosa sold 11,378 shares of the business’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $6.66, for a total value of $75,777.48. Following the transaction, the chief accounting officer owned 62,344 shares in the company, valued at approximately $415,211.04. This represents a 15.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 119,959 shares of company stock worth $809,325. 87.54% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Asana

Several hedge funds have recently made changes to their positions in the business. Invesco Ltd. raised its holdings in shares of Asana by 18.3% during the fourth quarter. Invesco Ltd. now owns 106,753 shares of the company’s stock valued at $1,464,000 after acquiring an additional 16,500 shares in the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in Asana in the fourth quarter valued at $211,000. XTX Topco Ltd boosted its holdings in Asana by 213.4% in the fourth quarter. XTX Topco Ltd now owns 235,451 shares of the company’s stock valued at $3,228,000 after acquiring an additional 160,329 shares in the last quarter. Susquehanna Fundamental Investments LLC increased its position in Asana by 663.4% during the 4th quarter. Susquehanna Fundamental Investments LLC now owns 109,178 shares of the company’s stock valued at $1,497,000 after purchasing an additional 94,876 shares during the period. Finally, Occudo Quantitative Strategies LP increased its position in Asana by 76.1% during the 4th quarter. Occudo Quantitative Strategies LP now owns 156,282 shares of the company’s stock valued at $2,143,000 after purchasing an additional 67,560 shares during the period. 26.21% of the stock is owned by hedge funds and other institutional investors.

About Asana

Asana, Inc (NYSE: ASAN) is a leading provider of work management and collaboration software designed to help teams organize, track and manage their work. Founded in 2008 by Dustin Moskovitz and Justin Rosenstein, Asana’s platform enables users to create projects, assign tasks, set deadlines and visualize progress across diverse workflows. The company’s cloud-based solution includes customizable project templates, timeline views, boards and automated rules that streamline routine processes and reduce manual effort.

Built for both small teams and large enterprises, Asana supports integrations with a wide array of third-party applications, including communication tools, file-sharing services and DevOps platforms.