Work management platform Asana (NYSE: ASAN) announced better-than-expected revenue in Q1 CY2026, 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.
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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
- Free Cash Flow Margin: 16.7%, up from 12.5% in the previous quarter
- Customers: 26,103 customers paying more than $5,000 annually
- Billings: $194.4 million at quarter end, up 11.2% year on year
- Market Capitalization: $1.52 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 have short-term success, but a top-tier one grows for years. Thankfully, Asana’s 25.9% 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 9.7% 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 9.5%, and its $205.1 million of revenue exceeded Wall Street’s estimates by 0.8%. Company management is currently guiding for a 8.7% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 7.7% 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 see some demand headwinds.
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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 punched in at $194.4 million in Q1, and over the last four quarters, its growth slightly outpaced the sector as it averaged 15.2% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. 
Enterprise Customer Base
This quarter, Asana reported 26,103 enterprise customers paying more than $5,000 annually, an increase of 175 from the previous quarter. That’s a bit fewer contract wins than last quarter and a bit below what we’ve observed over the previous year, suggesting its sales momentum with new enterprise customers is slowing. It also implies that Asana will likely need to upsell its existing large customers or move down market to maintain its top-line growth.
Key Takeaways from Asana’s Q1 Results
It was good to see Asana provide full-year EPS guidance that slightly beat analysts’ expectations. We were also glad its revenue guidance for next quarter slightly exceeded Wall Street’s estimates. On the other hand, its billings missed and its EPS guidance for next quarter fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded up 3.2% to $6.88 immediately after reporting.
Big picture, is Asana a buy here and 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).
