Asana (ASAN) Stock Forecast & Price Target

Asana's financial outlook remains positive, highlighted by a 20% year-over-year increase in customers contributing over $100K in annual recurring revenue (ARR), totaling 728 in Q1. The company's core customer count expanded by 8% year-over-year to 25.4K, with robust performance in international markets, particularly EMEA and Japan, which outpaced U.S. growth by approximately 500 basis points. Furthermore, Asana's FY26 Non-GAAP operating margin improved to around 7%, reflecting effective cost management in sales and marketing while positioning the company for sustainable financial growth.

Asana's financial outlook is negatively impacted by its continued lack of profitability and exposure to high-risk startups, which makes it particularly vulnerable in a recessionary environment. The company's upcoming renewals and heavy competition in the AI space add to the uncertainty surrounding its growth, resulting in a lower revenue multiple applied to downside projections. Additionally, while customer retention metrics show some improvement, pressure on net revenue retention rates and declining growth expectations cast a shadow on future performance prospects.