Shares of Asana, Inc. (ASAN) plummeted 8.11% on Tuesday following the release of its first-quarter fiscal 2026 earnings report, as investors focused on slowing growth and lowered guidance despite an earnings beat.

The work management platform provider reported adjusted earnings per share of $0.05, surpassing analyst estimates of $0.02. However, the company's revenue of $187.3 million fell short of the Street's expectations of $192.6 million. More importantly, Asana lowered its full-year revenue guidance to a range of $775 million to $790 million, down from the previous forecast and below the analyst consensus of $857.76 million.

While Asana showed some positive indicators, such as 20% year-over-year growth in customers spending over $100,000 annually and promising early results from its AI initiatives, investors seemed more concerned about signs of decelerating growth. The number of core customers grew by only 10% year-over-year, and the company's overall dollar-based net retention rate was 95%, suggesting challenges in expanding usage among existing customers.

The stock's plunge came after an initial 14% surge in after-hours trading immediately following the earnings release. This reversal highlights the market's focus on future growth prospects rather than the company's achievement of non-GAAP profitability for the first time. As Asana navigates a potentially challenging macroeconomic environment, investors will be closely watching for signs of reacceleration in growth and improvements in customer retention metrics in the coming quarters.