Earnings Call Insights: Asana (ASAN) Q2 2026
Management View
- Daniel Rogers, CEO, called Q2 a solid quarter, citing performance “above expectations across our business” and noting total revenues were up 10% year-over-year, exceeding the top end of guidance. Rogers highlighted strong contributions from “all customer cohorts and geographies,” with international growth outpacing the U.S. and verticals such as manufacturing, energy, financial services, and retail showing strong momentum. He stated, “Rolling 4-quarter NRR went to 96% from 95% last quarter” and emphasized that $100,000-plus customers grew 19% year-over-year.
- Rogers underscored AI Studio as a key driver, stating, “We’ve more than doubled our AI Studio ARR quarter-over-quarter and adoption continues to strengthen as customers build and scale on the platform.” He also noted a focus on non-tech industries and deepening market penetration in sectors like retail and regulated industries.
- Rogers shared, “Our continued focus on profitable growth and efficient scaling is driving meaningful margin expansion. Non-GAAP operating margin expanded almost 1,600 basis points year-over-year to 7%, above our guidance range.”
- Anne Raimondi, COO, reported, “International revenue grew 13% year-over-year and the U.S. market grew 8% year-over-year. Japan is one of our fastest-growing markets… they grew their Asana footprint by nearly 70% this quarter.”
- Raimondi noted, “Foundational service plans, or FSPs, are a strategic initiative to boost customer health and retention. Since launching, customers with FSPs show a 20% increase in utilization of their Asana seats within 3 months of adopting an FSP plan.”
- Sonalee Parekh, CFO, stated, “Q2 revenues came in at $196.9 million, up 10% year-over-year, which exceeded the high end of our guidance by 1%. Excluding the impact of currency, our Q2 revenue was up 9.4% year-over-year, still exceeding the high end of our guide.”
Outlook
- Parekh provided guidance for Q3 fiscal 2026: “We expect revenues of $197.5 million to $199.5 million, representing 7.4% to 8.5% growth year-over-year. We expect non-GAAP operating income of $12 million to $14 million, representing an operating margin of 6% to 7%, and we expect non-GAAP net income per share of $0.06 to $0.07.”
- For the full year, Parekh said, “We are updating our revenue guidance to $780 million to $790 million, representing 8% to 9% year-over-year growth from $775 million to $790 million previously.”
- Parekh explained, “We are raising the low end of our guidance to incorporate our actual Q2 results and maintaining the high end of our guide.”
Financial Results
- Parekh reported, “We have just over 25,000 core customers or customers spending $5,000 or more on an annualized basis. Revenues from core customers grew 12% year-over-year. This cohort represented 76% of our revenues in Q2.”
- The company had 770 customers spending $100,000 or more on an annualized basis, with this cohort growing 19% year-over-year.
- Net income was $15.1 million or $0.06 a share. Parekh noted, “Our profitability improvement continues to be driven by operating leverage, reallocating spends to the highest ROI go-to-market motions, optimizing infrastructure and cloud costs and exercising discipline across discretionary spend.”
- Cash, cash equivalents, and marketable securities at the end of Q2 were approximately $475.2 million. Q2 adjusted free cash flow was $35.4 million or 18% on a margin basis.
- The company repurchased $27.8 million of Class A common stock at an average price of $14.20, with $128 million remaining for repurchases moving forward.
Q&A
- Brent Bracelin, Piper Sandler: Asked Rogers why he joined Asana and about surprises since joining. Rogers described Asana as well positioned for “the inflection point of the Agentic enterprise” and said, “We’re already deeply embedded.”
- Aleksandr Zukin, Wolfe Research: Asked about AI Studio expansion and demand environment. Raimondi explained, “The more that customers are deploying AI Studio across… cross-functional use cases, they’re discovering other opportunities to create more workflow.” She also stated, “We’re definitely still seeing about the same demand environment dynamics we described last quarter, increased buyer scrutiny and elongation in decisions… However, it’s not worsened.”
- Steven Enders, Citi: Inquired on SEO-related pressures and guidance assumptions. Raimondi described investments in “more modern self-service, AI-driven experiences.” Parekh added, “Our Q3 and full year revised outlook does include the potential impact of that SMB and LLM disruption continuing.”
- Matthew Bullock, BofA: Asked about tech vertical renewals and AI Studio as a lever. Raimondi said, “We’re seeing improvements in logo churn and expansion overall. Specifically, what’s been helping… is healthy AI Studio and Foundational Service Plan adoption.”
- Rishi Jaluria, RBC: Asked about collaborative AI and productization. Rogers highlighted AI Teammates, stating, “AI Teammates is actually able to reason alongside humans and understand all that rich context and decide what the next step is and follow through on the execution.”
- Lucky Schreiner, D.A. Davidson: Asked about partner contributions to AI Studio deals. Raimondi confirmed, “Partners are critical in many of our consolidation deals.”
Sentiment Analysis
- Analysts focused on AI Studio adoption, vertical growth, and retention risks, with a slightly positive to neutral tone and probing for details on product traction and renewal performance.
- Management maintained a confident and optimistic tone, especially about AI Studio and international growth, while acknowledging ongoing pressures in SMB and renewal cycles. Parekh noted, “It’s too early to call Q2 an inflection point given potential downgrade pressure.”
- Compared to the previous quarter, both management and analysts maintained a consistent, constructive tone, with management incrementally more confident on AI momentum and expansion.
Quarter-over-Quarter Comparison
- The company updated full-year revenue guidance by lifting the low end, reflecting stronger Q2 results and ongoing growth in AI Studio and international markets.
- Strategic focus sharpened on AI-powered workflow products, partner expansion, and vertical market penetration, with added emphasis on self-serve and product-led growth.
- Analysts continued to press on renewal risk, AI Studio monetization, and the impact of search-driven SMB headwinds.
- Key metrics saw improvement: total revenues rose from $187.3 million to $196.9 million, NRR ticked up to 96%, and operating margin expanded from 4% to 7%.
- Management tone was more operationally focused this quarter, highlighting execution discipline and efficiency gains.
Risks and Concerns
- Management flagged potential downgrade pressure in the second half, especially in the tech vertical, noting, “We have several large enterprise renewals in the second half that are concentrated in our technology vertical.”
- Persistent top-of-funnel headwinds in SMB due to evolving search and AI-driven discovery. Raimondi stated, “It’s becoming increasingly critical to develop AI-native self-service experiences.”
- Despite improvements in logo churn and expansion, Parekh warned, “It’s too early to call Q2 an inflection point given potential downgrade pressure that could cause NRR to revert back to Q1 levels.”
Final Takeaway
Asana’s Q2 2026 performance demonstrated broad-based growth, with AI Studio adoption and international expansion leading the way. Management raised the low end of full-year revenue guidance, reflecting confidence in ongoing demand, while remaining vigilant about renewal cycles and SMB pressures. AI-driven workflows, foundational service plans, and strategic investments in self-serve and partner channels are positioned to support continued growth, even as the company plans for potential headwinds in the second half of the year.