Asana Posts First Ever Positive Operating Margin, Signs Largest Deal In History

Shares of Asana Inc ASAN tanked 17.71% at last check on Wednesday, despite the company’s recent earnings beat.

Here are some key analyst takeaways.

• Piper Sandler analyst Brent Bracelin maintained an Overweight rating, while raising the price target from $17 to $19.
• RBC Capital Markets analyst Rishi Jaluria reiterated an Underperform rating and price target of $10.
• JMP Securities analyst Patrick Walravens reaffirmed a Market Outperform rating and price target of $22.
• KeyBanc analyst Jackson Ader maintained a Sector Weight rating on the stock.

Check out other analyst stock ratings.

Piper Sandler: Asana delivered a revenue beat of 1.0% to the midpoint of its guidance, resulting in 8.6% growth. Total revenue amounted to $187 million. Bracelin noted that $100,000+ ARR (annual recurring revenue) customers totaled 728, up 20% year-on-year.

Operating margin came in at 4.3%, much higher than the guidance midpoint of 1.3%, while management projected 4.7% at the midpoint for the second quarter. They raised the full-year operating margin guidance to 5.5%, from their prior outlook of 5.0%, implying "a favorable margin progression through the rest of F2026, reinforcing our confidence in the continued focus on driving operating leverage," Bracelin wrote.

RBC Capital Markets: Asana reported revenue of $187.3 million, up 9% year-on-year, beating consensus of $185.4 million, Jaluria said. Non-GAAP earnings of 5 cents per share also came in ahead of consensus of 2 cents per share, he added.

Billings, RPO, and cRPO (current remaining performance obligation) were impacted by deal renewal shifting to the second quarter, the analyst stated. "NRR continues to be impacted by lack of expansion from macro pressures, specifically in the tech vertical, as overall, core customer, and $100K+ customer NRR all declined by 1 point QoQ," he further wrote.

JMP Securities: Asana posted positive operating margin for the first time in its history, Walravens said. Although revenues grew 9% year-on-year, they were down 10% sequentially, he added.

Billings of $175 million came in short of consensus of $213 million. At the same time, RPO growth of 11% missed expectations of 13%.

Asana's largest deal in history slipped into 2Q. Asana widened its full-year revenue guidance range to $775-$790 million, citing "a growing macroeconomic risk," Walravens further wrote.

KeyBanc Capital: Asana inked its largest deal in history during the first quarter, with a total contract value of $100 million, Ader said. Although this renewal and expansion deal extended the contract term from one year to three years, it represents a lower average annual contract value (ACV), he added.

Management lowered the midpoint of their revenue range by $3.5 million, due to the large customer contract and other macro uncertainty, the analyst stated. "Overall, though, we feel incrementally worse about the trends going forward," he further wrote.

ASAN Price Action: Shares of Asana are currently trading at around $15.64 at the time of publication on Wednesday.

Read More:

• Asana Growth Materially Lags Peers, JP Morgan Cuts Price Forecast

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