Asana (ASAN) Stock Forecast & Price Target

Asana is benefiting from a broadening product suite and early traction in AI-driven workflows, with AI products contributing 25% of net new ARR and AI-related ARR approaching ~$20M, while the launch of Agentic Work Management and new applications should expand land-and-expand opportunities. Revenue grew 9.9% year over year to $216.4M, operating cash flow reached $46.0M, free cash flow was $40.0M, and retention improved to 97% overall as the $100K+ cohort rose to 98%, signaling healthier customer expansion. Although consumption-based pricing and packaging changes create near-term revenue-recognition headwinds and guided growth remains in the high-single digits, the combination of improving retention, margin improvement toward ~10%, and a large $79B TAM supports a constructive long-term view.

Asana is facing a negative fundamental setup because its growth is still constrained by intense competition from Microsoft, Alphabet, Smartsheet, monday.com, and Airtable, while self-serve PLG weakness continues to drag overall momentum. Although F2Q27 revenue rose 9.9% year over year to $216.4M and non-GAAP EPS reached $0.10, guidance points to only 8%-9% growth, 97% net revenue retention, and a $1.2M revenue timing headwind from packaging and consumption-based recognition changes. Management also expects about 100 basis points of growth pressure in Q3 and 150 basis points in Q4, alongside roughly 150 basis points of gross margin pressure, underscoring that AI gains have not yet fully offset declining legacy demand and ongoing profitability risk.