Shares of Domo Inc. (DOMO) are set to open sharply lower, plummeting 14.63% in pre-market trading on Thursday, as investors react to the cloud-based data analytics company's mixed financial report. While Domo surpassed expectations for its second-quarter fiscal 2026 results, the company's forward guidance fell short of market projections, triggering a significant sell-off.

For Q2, Domo reported revenue of $79.7 million, beating analyst estimates of $78 million. The company also achieved its first-ever positive non-GAAP earnings per share of $0.02, compared to the expected loss of $0.05 per share. This performance was bolstered by strong subscription remaining performance obligations (RPO) growth of 19% year-over-year and a record non-GAAP operating margin of 8%.

However, Domo's outlook for the upcoming quarter and full fiscal year 2026 disappointed investors. The company forecasts Q3 revenue between $78.5 million and $79.5 million, with a non-GAAP net loss per share of $0.03 to $0.07. For the full year, Domo projects revenue of $316 million to $320 million and a non-GAAP net loss per share of $0.11 to $0.19. These projections suggest ongoing profitability challenges and potentially slower growth, likely contributing to the sharp pre-market decline. Despite the negative market reaction, Domo highlighted its progress in strategic initiatives, including a strengthened partnership with Amazon Web Services (AWS) aimed at driving rapid adoption of generative AI solutions.