Work management platform Asana (NYSE: ASAN) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 9.5% year on year to $205.1 million. Guidance for next quarter’s revenue was better than expected at $214 million at the midpoint, 0.9% above analysts’ estimates. Its non-GAAP profit of $0.10 per share was 33.2% above analysts’ consensus estimates.

Is now the time to buy ASAN? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Asana delivered a stronger-than-anticipated first quarter, driven by accelerating adoption of its AI-powered workflow tools and improving customer retention across key verticals. Management highlighted that net retention rates improved for the fourth consecutive quarter, citing widespread seat expansion and deeper engagement with new AI offerings as meaningful contributors to growth. CEO Daniel Mark Rogers pointed to broad-based improvements, including a return to positive growth in the technology sector, and cited high-profile customer expansions with clients such as CoreWeave and Epson. The company’s recent focus on multiproduct adoption and operational discipline also supported margin expansion and stronger-than-expected profitability.

Looking ahead, Asana’s upgraded guidance reflects management’s confidence in scaling its AI product suite and expanding into more complex enterprise workflows. The acquisition of Stack.ai is expected to accelerate the roadmap for cross-system automation, enabling customers to orchestrate more sophisticated business processes. Management expects ongoing improvements in sales productivity, customer retention, and the integration of AI teammates to drive long-term margin expansion and higher-value customer relationships. CFO Aziz Megji noted that only modest improvements in net retention are assumed in the outlook, adding, “We are seeing continued improvement across the business, including accelerated momentum across our AI products.”

Key Insights from Management’s Remarks

Management attributed the quarter’s outperformance to robust demand for AI-powered automation, broad-based customer expansion, and operational efficiencies that contributed to higher margins.

• AI product momentum: Early adoption of AI Studio and AI Teammates contributed significantly to seat expansion and deeper customer engagement, with customers embedding automation into core operational workflows.
• Net retention improvement: Net revenue retention (NRR) improved for the fourth consecutive quarter, with both gross retention and expansion trends strengthening, particularly among enterprise customers using AI products.
• Vertical diversification: Growth in non-technology sectors outpaced the company average, with notable expansions in consulting and industrial technology, supporting Asana’s diversification across industries and use cases.
• International traction: Revenue growth in international markets, especially EMEA and APAC, outpaced overall performance, underscored by wins with brands like IKEA Australia and a British athletic apparel company.
• Operational discipline: Margin improvements were attributed to disciplined spending, increased leverage from AI-driven processes, and ongoing optimization of the sales organization, enabling continued investment in product innovation and strategic initiatives.

Drivers of Future Performance

Management’s outlook is driven by the scaling of AI-powered workflow automation, continued product innovation, and targeted go-to-market strategies, balanced by cautious assumptions for net retention rates.

• AI portfolio expansion: The integration of Stack.ai is expected to accelerate the development of complex, cross-system automations, enabling Asana to address more sophisticated enterprise needs and expand into new buying centers, such as AI transformation leaders and IT operations teams.
• Sales and product leverage: Ongoing improvements in sales productivity, proactive customer engagement, and tailored vertical solutions are expected to drive larger initial deals and more robust expansion among existing customers, especially as AI Teammates and AI Studio gain adoption.
• Retention and efficiency headwinds: Management remains cautious on the pace of net retention improvement, factoring in potential seat reductions in the technology sector and ongoing headcount pressures, while continuing to prioritize operational efficiency and disciplined expense management to support margin expansion.

Catalysts in Upcoming Quarters

In the coming quarters, our analyst team will closely monitor (1) the pace of AI Studio and Teammates adoption among both new and existing customers, (2) successful integration and go-to-market execution for Stack.ai’s cross-system workflow capabilities, and (3) sustained margin improvements driven by operational discipline and automation. Continued progress in customer retention and expansion, particularly in new industry verticals, will also be key indicators of execution.

Asana currently trades at $6.99, up from $6.74 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.