Shares of Asana, Inc. (ASAN) tumbled 7.74% in pre-market trading on Wednesday following the release of its first-quarter fiscal 2026 earnings report. The work management platform provider delivered mixed results, with an earnings beat overshadowed by a revenue miss and lowered full-year guidance.

Asana reported adjusted earnings per share of $0.05, surpassing the analyst consensus of $0.02. However, the company's revenue of $187.27 million fell short of expectations, growing only 8.59% year-over-year. This indicates a significant deceleration compared to the 26% growth rate seen in the same quarter last year.

The company's outlook also disappointed investors. Asana lowered its full-year revenue guidance to a range of $775 million to $790 million, down from the previous forecast of $782 million to $790 million. This revised guidance suggests ongoing challenges in maintaining the company's growth trajectory.

Despite some positive indicators, such as the 20% year-over-year growth in customers spending over $100,000 annually and promising early results from its AI initiatives, investors seemed more focused on signs of slowing 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.

Asana's management cited "early signs of increased buyer scrutiny and downgrade activity, particularly in our enterprise and corporate customer bases," reflecting growing macroeconomic risks. This cautious outlook, combined with the revenue miss and lowered guidance, appears to have overshadowed the company's achievement of non-GAAP profitability for the first time, leading to the sharp pre-market decline.