Asana (NYSE:ASAN) Shares Gap Up on Strong Earnings

Key Points

• Asana shares jumped after the company reported stronger-than-expected quarterly results, opening above the prior close and trading higher on heavy volume.
• Q1 fiscal 2027 earnings and revenue both beat estimates, with EPS of $0.10 versus $0.08 expected and revenue of about $205.1 million, up 9.5% year over year.
• Management also gave upbeat guidance and advanced its AI strategy, including Q2 and full-year outlooks above analyst expectations and the completion of its Stack AI acquisition.

Asana, Inc. (NYSE:ASAN - Get Free Report) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $6.66, but opened at $7.40. Asana shares last traded at $7.4580, with a volume of 4,115,600 shares.

The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.02. Asana had a negative net margin of 23.90% and a negative return on equity of 77.05%. The firm had revenue of $205.10 million during the quarter, compared to the consensus estimate of $203.58 million. During the same quarter last year, the firm earned $0.05 earnings per share. The company's revenue for the quarter was up 9.5% on a year-over-year basis. Asana has set its FY 2027 guidance at 0.370-0.370 EPS and its Q2 2027 guidance at 0.080-0.090 EPS.

Key Asana News

Here are the key news stories impacting Asana this week:

• Positive Sentiment: Asana beat Q1 fiscal 2027 earnings and revenue estimates, posting $0.10 EPS versus $0.08 expected and revenue of about $205.1 million versus $203.6 million expected, while revenue rose 9.5% year over year. Asana Announces First Quarter Fiscal 2027 Results
• Positive Sentiment: The company also raised optimism around future growth by providing Q2 and full-year guidance above analyst expectations for both EPS and revenue. Asana, Inc. (ASAN) Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Asana completed its acquisition of Stack AI, a no-code AI workflow platform, which could strengthen its product suite and support its push to become an AI-native workplace platform. Asana Acquires StackAI, Adding Cross-System Execution for Human-Agent Teams
• Neutral Sentiment: Management’s commentary and the earnings transcript may offer more detail on margin trends, AI strategy, and the path to profitability, but the main market catalyst is the earnings beat and acquisition. Asana (ASAN) Q1 2027 Earnings Transcript
• Negative Sentiment: Despite the upbeat headline numbers, Asana still posted a net loss and operating loss, and recent reports noted insider selling, which may temper enthusiasm around the stock. Asana, Inc. (ASAN) Stock Rises on Q1 2027 Earnings

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on ASAN shares. Royal Bank Of Canada raised shares of Asana from an "underperform" rating to a "sector perform" rating and set a $7.00 price objective on the stock in a report on Wednesday, April 1st. Jefferies Financial Group reduced their price objective on shares of Asana from $15.00 to $8.00 and set a "hold" rating for the company in a research report on Monday, February 23rd. Morgan Stanley cut their target price on Asana from $14.00 to $8.00 and set an "underweight" rating on the stock in a research note on Tuesday, March 3rd. Wall Street Zen lowered Asana from a "strong-buy" rating to a "buy" rating in a report on Sunday, April 19th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Asana in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $12.32.

Insider Buying and Selling at Asana

In related news, CAO Veronica Sosa sold 6,479 shares of Asana stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.65, for a total value of $43,085.35. Following the completion of the sale, the chief accounting officer owned 73,722 shares of the company's stock, valued at approximately $490,251.30. This trade represents a 8.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Katie Marie Colendich sold 7,304 shares of the business's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $7.42, for a total value of $54,195.68. Following the completion of the sale, the insider owned 108,214 shares in the company, valued at $802,947.88. This represents a 6.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 70,226 shares of company stock worth $472,065 over the last ninety days. 61.28% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Asana

Several large investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership lifted its position in shares of Asana by 37.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 7,184,248 shares of the company's stock worth $45,979,000 after acquiring an additional 1,969,657 shares in the last quarter. Jupiter Asset Management Ltd. lifted its holdings in Asana by 705.6% during the 4th quarter. Jupiter Asset Management Ltd. now owns 1,374,891 shares of the company's stock worth $18,850,000 after purchasing an additional 1,204,232 shares in the last quarter. Bank of America Corp DE boosted its stake in Asana by 92.6% in the 1st quarter. Bank of America Corp DE now owns 2,237,195 shares of the company's stock worth $14,318,000 after purchasing an additional 1,075,572 shares during the period. Goldman Sachs Group Inc. grew its holdings in Asana by 53.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 2,791,902 shares of the company's stock valued at $38,277,000 after buying an additional 977,107 shares in the last quarter. Finally, Marshall Wace LLP increased its position in shares of Asana by 35.1% during the fourth quarter. Marshall Wace LLP now owns 2,653,145 shares of the company's stock valued at $36,375,000 after buying an additional 689,546 shares during the period. Hedge funds and other institutional investors own 26.21% of the company's stock.

Asana Price Performance

The business's fifty day moving average price is $6.31 and its 200-day moving average price is $9.39. The stock has a market capitalization of $1.77 billion, a PE ratio of -9.28 and a beta of 0.95.

About Asana

Asana, Inc NYSE: ASAN is a leading provider of work management and collaboration software designed to help teams organize, track and manage their work. Founded in 2008 by Dustin Moskovitz and Justin Rosenstein, Asana's platform enables users to create projects, assign tasks, set deadlines and visualize progress across diverse workflows. The company's cloud-based solution includes customizable project templates, timeline views, boards and automated rules that streamline routine processes and reduce manual effort.

Built for both small teams and large enterprises, Asana supports integrations with a wide array of third-party applications, including communication tools, file-sharing services and DevOps platforms.

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