Domo (DOMO) Stock Forecast & Price Target

Domo Inc. has demonstrated robust growth in its long-term subscription remaining performance obligation (RPO), which has surged by 44.1% year-over-year to $189.6 million, reflecting a strong commitment from customers to multi-year contracts. The subscription remaining performance obligation has also increased by 19.5% year-over-year to $409.8 million, indicating sustained demand for its services. Additionally, the company has raised its FY2026 revenue guidance to a range of $316-320 million, paired with improved EPS guidance, signaling a positive trend in financial performance.

Domo Inc faces a challenging outlook due to expectations of sequential subscription revenue decline, which contrasts sharply with its historical performance of steady revenue growth. The company's ability to maintain competitive differentiation in a rapidly evolving business intelligence and analytics market is uncertain, and potential risks include declining contract expansions and suboptimal customer retention rates. Additionally, with significant net operating losses and ongoing challenges such as macroeconomic factors, fierce competition, and technological change, the company's long-term profitability remains questionable.