Why Did ASAN Stock Gain In Premarket Today?

• Asana expects Q4 revenue between $204 million and $206 million, reflecting a growth of 8% to 9% on a year-on-year basis
• Asana posted a non-GAAP net income of $17.9 million, reversing a $4.8 million loss last year.
• Citi lowered Asana’s price target to $16 from $17, while RBC Capital raised the stock’s price target to $14 from $12.

Shares of Asana Inc. (ASAN) climbed nearly 4% on Wednesday after the company delivered a better-than-expected third-quarter topline and strong full-year 2026 guidance.

If ASAN stock holds its premarket level, it will cross a key near-term indicator, the 50-day moving average (50-DMA) for the first time in a month.

Q4, Fiscal 2026 Outlook

Looking ahead to the fourth quarter, Asana expects revenue between $204 million and $206 million, reflecting 8% to 9% year-on-year growth. The company forecasts non-GAAP operating income of up to $16 million and non-GAAP earnings per share of $0.07.

For fiscal 2026, Asana maintains its outlook for approximately 9% revenue growth, targeting non-GAAP operating income of up to $54.5 million and non-GAAP earnings per share of up to $0.26.

Q3 Earnings Snapshot

Asana’s revenue climbed 9% to $201 million, beating Street estimates of $198.8 million, according to fiscal.ai data. While the company reported a wider GAAP operating loss of $70 million, non-GAAP results showed a turnaround, with an operating income of $16.3 million compared with a loss of $7.6 million in the same period last year.

The improvement carried through to the bottom line with the company posting a non-GAAP net income of $17.9 million, reversing a $4.8 million loss in the prior-year quarter.

“Q3 was another strong quarter of execution. We exceeded the high end of our revenue guidance, improved our year-to-date GAAP operating margin by 10 percentage points, and year-to-date non-GAAP operating margin by 14 percentage points,” said Sonalee Parekh, Chief Financial Officer of Asana. 

Brokerage Action

Citi lowered Asana’s price target to $16 from $17 and maintained a ‘Neutral’ rating, according to TheFly. However, RBC Capital raised the stock’s price target to $14 from $12 while maintaining an ‘Underperform’ rating, an investing.com report read.

RBC Capital noted that while Asana’s AI Studio continued to gain traction with customers, it was not enough to change the firm’s underlying Underperform rating on the stock.

How Did Stocktwits Users React?

Retail sentiment for ASAN on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours, amid ‘extremely high’ message volumes.

One user expects the stock to rally on Wednesday.

Another expects the stock to hit $20 by the year-end.

ASAN stock has been under selling pressure this year, shedding more than 35%.

Read also: Apple Eyes Record iPhone Shipments This Year, Powered By China Rebound: Report

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