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AI

Asana, Inc. (ASAN)·Q2 2026 Earnings Summary

Executive Summary

  • Revenue of $196.9M exceeded the high end of guidance and beat Wall Street consensus; non-GAAP EPS of $0.06 beat estimates, and non-GAAP operating margin expanded 1,600 bps YoY to 7% . Q2 revenue consensus was $193.0M*, EPS consensus $0.0497*, both exceeded [Values retrieved from S&P Global].
  • Management raised FY26 revenue guidance to $780–$790M (low end raised) and lifted non-GAAP operating income/margin guidance to $46–$50M and ~6% (from ≥5.5%), with Q3 revenue guided to $197.5–$199.5M and EPS $0.06–$0.07 .
  • KPIs improved/stabilized: overall NRR 96%, Core customers 25,006 (+9% YoY), and $100k+ customers 770 (+19% YoY) as AI Studio adoption ramps; adjusted free cash flow rose to $35.4M .
  • Stock catalysts: revenue/EPS beat and margin expansion; upward guidance revisions; AI Studio traction (more than doubled AI Studio ARR QoQ) and product roadmap (Smart Workflow Gallery; upcoming AI Teammates), alongside channel/FedRAMP and AWS Marketplace distribution expanding reach .

What Went Well and What Went Wrong

What Went Well

  • “Q2 was a solid quarter. We delivered revenue growth above the high end of our guidance, saw NRR stabilize quarter over quarter… and expanded non-GAAP operating margin by 16 percentage points year over year” — CFO Sonalee Parekh .
  • Non-GAAP operating margin reached 7%; gross margin held ~90%, highlighting operating leverage and cost discipline (R&D/S&M/G&A reductions YoY on a non-GAAP basis) .
  • AI Studio momentum: “We’ve more than doubled our AI Studio ARR quarter over quarter” and adoption strengthening; management highlighted real-world customer ROI and upcoming AI Teammates to deepen stickiness .

What Went Wrong

  • NRR remains a watch item; while overall NRR was 96%, management cautioned downgrade pressure could cause NRR to revert to Q1 levels given a heavier renewal slate in H2 and a prior large-tech downgrade .
  • SMB top-of-funnel pressure from AI/Search changes weighed on traffic; while conversion improved, SMB growth in H2 may be impacted despite mitigations in self-serve and content strategy .
  • Tech vertical stable but still a drag on overall growth; concentrated enterprise renewals in H2 (especially tech) pose risk to expansion momentum even as foundational service plans help mitigate downgrades .

Financial Results

Quarterly Performance vs Prior Periods and YoY

MetricQ4 FY2025Q1 FY2026Q2 FY2026
Revenue ($USD Millions)$188.3 $187.3 $196.9
GAAP Operating Margin (%)(33.8)% (23.4)% (25.1)%
Non-GAAP Operating Margin (%)(0.9)% 4.3% 7.1%
GAAP EPS ($)($0.27) ($0.17) ($0.20)
Non-GAAP EPS ($)$0.00 $0.05 $0.06
GAAP Gross Margin (%)89.6% 89.7% 89.7%
Non-GAAP Gross Margin (%)89.8% 89.9% 90.0%

KPIs and Cash Flow

KPIQ4 FY2025Q1 FY2026Q2 FY2026
Core Customers (≥$5k, count)24,062 24,297 25,006
$100k+ Customers (count)726 728 770
Overall NRR (%)96% 95% 96%
Core NRR (%)97% 96% 96%
$100k+ NRR (%)96% 95% 95%
Operating Cash Flow ($M)$15.9 $6.8 $39.8
Adjusted Free Cash Flow ($M)$12.3 $9.9 $35.4

Consensus vs Actuals and Guidance

MetricQ2 FY2026 ActualQ2 FY2026 Consensus*Q3 FY2026 GuidanceQ3 FY2026 Consensus*
Revenue ($USD Millions)$196.9 $193.0*$197.5–$199.5 $198.8*
EPS ($)$0.06 (non-GAAP) $0.0497*$0.06–$0.07 (non-GAAP) $0.0619*

Estimates marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)FY2026$775–$790 $780–$790 Raised low end
Non-GAAP Operating Margin (%)FY2026≥5.5% ~6% (via $46–$50M OI) Raised
Non-GAAP Operating Income ($USD Millions)FY2026N/A$46–$50 Introduced/Up
Non-GAAP EPS ($)FY2026$0.22 $0.23–$0.25 Raised
Revenue ($USD Millions)Q3 FY2026N/A$197.5–$199.5 New
Non-GAAP Operating Margin (%)Q3 FY2026N/A6–7% New
Non-GAAP EPS ($)Q3 FY2026N/A$0.06–$0.07 New

Earnings Call Themes & Trends

TopicQ4 FY2025 (Q-2)Q1 FY2026 (Q-1)Q2 FY2026 (Current)Trend
AI Studio tractionEarly momentum, multi-million pipeline; product-led AI strategy GA reached $1M ARR; Smart Workflow Gallery; Plus tier announced; whales possible but timing uncertain ARR more than doubled QoQ; strong customer ROI; AI Teammates upcoming Accelerating
NRR/renewalsNRR 96%; stabilization NRR 95%; tech renewal >$100M TCV with modest ACV downgrade; warned Q2 pressure NRR 96%; in-quarter improvement but H2 downgrade risk; tech stable but headwind Stabilizing with risk
SMB funnel/SEONot highlightedEarly buyer scrutiny; paid media optimization; pipeline healthy AI-led search changes reduce low-intent traffic; mitigations via self-serve, content personalization Under pressure
International/geosGlobal demand; leadership recognition; events International +11% YoY; APAC/EMEA partner traction International outpaced U.S.; Japan strong; EMEA/Japan partner growth Positive
Distribution/partnersDatacom partnership; events Partner program relaunch; 3 of top 5 deals partner-led; APAC/EMEA traction More partners certified on AI Studio; underpenetrated channel; consolidation deals with partner roles Expanding
Regulatory/public sector——FedRAMP “In Process” designation (Moderate); public sector offering planned Improving
AWS Marketplace——Available in AWS AI Agents & Tools storefront; accelerates procurement Improving
Profitability/efficiencyImproved margins; positive FCF First positive non-GAAP op income; multi-year margin expansion focus 7% non-GAAP op margin; >90% gross margin; hiring timing shifted to H2 Improving

Management Commentary

  • CEO Dan Rogers: “We continue to see strong momentum in AI Studio… Non GAAP operating margin expanded almost 1,600 basis points year over year to 7%, above our guidance range” . “We are building the future of the agentic enterprise… AI Studio, Smart Workflows and soon-to-be launched teammates” .
  • COO Anne Raimondi: “International markets remain a strength… Japan is one of our fastest growing markets… Foundational Service Plans… show a 20% increase in utilization within three months” .
  • CFO Sonalee Parekh: “Q2 revenues came in at $196.9M up 10%… we delivered a 7% operating margin or $14M of operating income… about 50 bps was due to timing of hiring” . “We are updating revenue guidance to $780–$790M… and raising full-year operating income guidance to $46–$50M representing ~6% operating margin” .

Q&A Highlights

  • AI Studio adoption and ROI: Management detailed repeatable use cases, pre-built workflow templates, and self-serve Plus tier as catalysts; highlighted examples across industries and partner enablement .
  • Demand and SMB funnel: Buyer scrutiny persists but conversion quality improved; AI-driven search changes reduce low-intent traffic; mitigations in self-serve experiences and content strategy are underway .
  • Renewals/NRR cadence: Tech vertical stable; H2 renewals concentrated in tech may pressure NRR; foundational service plans and AI Studio help offset downgrades .
  • Margin/efficiency: Hiring timing shifted to H2; continued discipline in go-to-market ROI, vendor rationalization, and geographic talent mix to support multi-year margin expansion .

Estimates Context

  • Q2 FY26 beat: Revenue $196.9M vs $193.0M consensus*, non-GAAP EPS $0.06 vs $0.0497 consensus* .
  • Q3 FY26 outlook vs consensus: Revenue guide $197.5–$199.5M vs $198.8M consensus*; EPS guide $0.06–$0.07 vs $0.0619 consensus* .
  • Implications: Consensus likely to edge up on EPS for FY26 given raised margin guidance; revenue consensus may align to the raised FY range midpoint. Estimates marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Asana delivered a clean beat with margin expansion; raised FY revenue and margin guidance signals confidence in profitable growth despite H2 renewal headwinds — positioning for continued sequential margin improvement .
  • AI Studio is becoming a growth vector with ARR doubling QoQ and expanding self-serve/partner distribution; upcoming AI Teammates can accelerate usage-based monetization and platform stickiness .
  • KPIs show stabilization: NRR 96% and improving in-quarter trends, but management prudently flags downgrade risk in tech-heavy H2 renewals; watch renewal execution and AI Studio attachment rates .
  • Strong liquidity and cash generation (OCF $39.8M, adjusted FCF $35.4M); buybacks offset dilution ($27.8M repurchased in Q2 at ~$14.2/share) supporting capital return .
  • Near-term trading setup: Beat/raise quarter, AI narrative momentum, and distribution wins (FedRAMP “In Process”, AWS Marketplace) are positives; monitor SMB funnel normalization and NRR trajectory through Q3/Q4 .
  • Medium-term thesis: Work Graph-enabled agentic workflows create differentiated enterprise AI productivity; multi-product strategy (FSPs, compliance/permissions, upcoming timesheets/budgeting) supports NRR lift and durable growth .

Appendix: Additional Business Highlights (Q2 FY26)

  • Smart Workflow Gallery launched; AWS Marketplace AI Agents storefront listing; FedRAMP “In Process” designation; Mastercard partnership expansion; CEO transition to Dan Rogers .