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.
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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 year to $861 million at the midpoint from $859.5 million
- Management reiterated its full-year Adjusted EPS guidance of $0.37 at the midpoint
- Operating Margin: -19%, up from -25.1% in the same quarter last year
- Free Cash Flow Margin: 18.5%, up from 16.7% in the previous quarter
- Customers: 26,778 customers paying more than $5,000 annually
- Net Revenue Retention Rate: 97%
- Billings: $243 million at quarter end, up 10.3% year on year
- Market Capitalization: $2.26 billion
Company Overview
Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE: ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Asana’s 23.1% annualized revenue growth over the last five years was solid. Its growth beat the average software company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Asana’s recent performance shows its demand has slowed as its annualized revenue growth of 9.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, Asana reported year-on-year revenue growth of 9.9%, and its $216.4 million of revenue exceeded Wall Street’s estimates by 1%. Company management is currently guiding for a 8.4% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 7.9% over the next 12 months, a slight deceleration versus the last two years. This projection doesn’t excite us and indicates its products and services will face some demand challenges.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Asana’s billings came in at $243 million in Q2, and over the last four quarters, its growth was underwhelming as it averaged 10.6% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in acquiring/retaining customers. 
Enterprise Customer Base
This quarter, Asana reported 26,778 enterprise customers paying more than $5,000 annually, an increase of 675 from the previous quarter. That’s quite a bit more contract wins than last quarter and about the same as what we’ve seen over the previous year. Shareholders should take this as an indication that Asana has made some recent improvements to its go-to-market strategy.
Key Takeaways from Asana’s Q2 Results
We were impressed by how significantly Asana blew past analysts’ billings expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. On the other hand, its EPS guidance for next quarter missed and its full-year EPS guidance fell slightly short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. Investors were likely hoping for more, and shares traded down 13.7% to $8.76 immediately after reporting.
So should you invest in Asana right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
