Asana Q1 Results Lifted by StackAI Acquisition
Asana Q1 results showed a revenue beat and margin gains; the StackAI acquisition boosts AI execution while sub-100% net retention tempers optimism.
KEY TAKEAWAYS
- Following the filing, Q1 revenue was $205 million and Asana raised FY27 revenue guidance.
- Non-GAAP operating margin expanded to about 11.5% with non-GAAP EPS of $0.10.
- Dollar-based net retention was 96%, below 100%, creating structural expansion risk despite rising AI adoption.
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Asana, Inc. (NYSE: ASAN) reported first-quarter fiscal 2027 results on May 28, 2026, with revenue of $205.1 million and expanded non-GAAP margins. The company completed its acquisition of StackAI, adding cross-system AI execution, while dollar-based net retention remained below 100%.
Q1 Results and Guidance
Asana’s press release for the quarter ended April 30, 2026, showed revenue above prior guidance. Non-GAAP operating margin expanded to about 11.5%, and non-GAAP diluted earnings per share (EPS) reached $0.10, exceeding consensus estimates of $0.07 to $0.08. The company raised its full-year fiscal 2027 revenue guidance to $855 million–$863.5 million from $850 million–$858 million.
On the earnings call, management reported overall dollar-based net retention of 96% and core customer net retention of 97%, noting sequential improvement for four consecutive quarters. Executives highlighted increased adoption of AI products, including AI Teammates and AI Studio, linking rising AI usage to stronger customer engagement and renewed top-line momentum.
StackAI Acquisition and Integration
Asana announced the completion of its acquisition of StackAI in a Business Wire release on May 28, 2026. StackAI is a no-code AI workflow and agent-builder platform that enables customers to design, test, deploy, and govern custom AI agents and automate critical workflows across enterprise resource planning (ERP), customer relationship management (CRM), and IT service management (ITSM) systems. The company described itself as the “operating system for human-agent teams,” positioning StackAI as adding orchestration for workflows spanning multiple enterprise systems.
StackAI’s founders, Tony Rosinol and Bernard Aceituno, will join Asana. The company did not disclose the purchase price; secondary reports estimate the transaction at about $75 million. The acquisition is expected to accelerate Asana’s AI roadmap by more than a year and extend AI Studio and AI Teammates with execution capabilities beyond Asana’s environment.
Analysts characterized the quarter as a modest beat and raise that improves momentum but leaves structural questions. These include whether AI-driven expansion can offset pressure from Asana’s seat-based pricing model and whether margin gains can coexist with net retention below 100%. Coverage following the results shifted some opinions to a Neutral stance, citing the acquisition and margin progress as positives while flagging retention and seat-count risks as constraints on sustainable upside.
