Asana (ASAN) Stock Forecast & Price Target

Asana is attractive because its revenue growth reaccelerated to 9.9% Y/Y, it beat the midpoint of guidance by $2.4M, and it is now pairing a large install base with improving retention, as overall NRR rose to 97% and the $100K cohort reached 98%. Its outlook is strengthened by a rapidly expanding multi-product platform, with AI products contributing 25% of net new ARR and new offerings like Agentic Work Management, Service Management, Command, and Client Management creating more ways to land, expand, and monetize across enterprises. Despite some revenue-recognition noise from the shift to consumption pricing, management still raised the FY27 revenue midpoint to $861M and expects roughly 270bp of Y/Y margin improvement, reinforcing a path to durable profitability.

Asana is facing a negative outlook because its growth is decelerating just as competition intensifies against Microsoft, Google, Smartsheet, monday.com, and Airtable, while guidance implies only 8%–9% revenue growth in 3QFY27 and a 100 to 150 basis point PLG drag. Despite F2Q27 revenue of $216.4 million and non-GAAP EPS of $0.10, the company posted weaker gross margin of 87.2%, RPO of $522 million below consensus, and net revenue retention of 97% that remains under 100%, signaling fragile demand quality. It also still faces negative free cash flow through F4Q25, revenue timing noise from product packaging changes, and higher execution risk as it pushes harder into enterprise customers and AI products.