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.
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Asana (ASAN) Q1 CY2026 Highlights:
- Revenue: $205.1 million vs analyst estimates of $203.6 million (9.5% year-on-year growth, 0.8% beat)
- Adjusted EPS: $0.10 vs analyst estimates of $0.08 (33.2% beat)
- Adjusted Operating Income: $23.58 million vs analyst estimates of $16.19 million (11.5% margin, 45.7% beat)
- The company slightly lifted its revenue guidance for the full year to $859.5 million at the midpoint from $854 million
- Management raised its full-year Adjusted EPS guidance to $0.37 at the midpoint, a 1.4% increase
- Operating Margin: -7.4%, up from -23.4% in the same quarter last year
- Customers: 26,103 customers paying more than $5,000 annually
- Annual Recurring Revenue: $845.1 million (9.7% year-on-year growth, beat)
- Billings: $194.4 million at quarter end, up 11.2% year on year
- Market Capitalization: $1.84 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Asana’s Q1 Earnings Call
- Robert Oliver (Baird) asked about the rationale and expected integration timeline for the Stack.ai acquisition. CEO Daniel Mark Rogers explained that Stack.ai enables Asana to deliver advanced cross-system workflow automation immediately, accelerating its roadmap by a year and allowing deeper engagement with enterprise customers.
- Matt Bullock (Bank of America) inquired about the drivers behind the return to positive growth in the technology sector. CFO Aziz Megji attributed the improvement to strong expansion and seat growth among early adopters of AI Studio and AI Teammates, citing positive momentum despite ongoing headcount pressures.
- Patrick Walravens (Citizens) raised questions about Asana's differentiation in a crowded AI work management market. Rogers emphasized unique features such as the “work graph,” multiplayer mode, shared memory, and robust enterprise governance, positioning Asana as an operating system for human-agent collaboration.
- Jackson Ader (KeyBanc) sought clarification on spending patterns among large AI Studio customers and the buyer persona for Stack.ai. Megji confirmed that $100,000-plus customers are spending that amount specifically on AI Studio, and Rogers explained that new buying centers, such as AI transformation teams, are emerging as key decision-makers.
- Steven Enders (Citi) asked about the impact of AI Studio and Teammates adoption on seat expansion and retention. Rogers and Megji highlighted that customers adopting these products are showing the strongest net retention and expansion, with Stack.ai expected to further enhance upgrade opportunities.
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 $7.82, up from $6.66 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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