Shares of Asana, Inc. (ASAN) tumbled 5.79% in after-hours trading on Tuesday, following the release of its first-quarter fiscal 2026 earnings report. The work management platform provider delivered mixed results, beating earnings estimates but falling short on revenue expectations.

Asana reported adjusted earnings per share of $0.05, surpassing the analyst consensus of $0.02. However, the company's revenue of $187.3 million missed the Street estimate of $192.6 million. Despite the earnings beat, investors seemed to focus on the revenue miss and the company's guidance, which may have contributed to the stock's decline.

The company's outlook for the second quarter and full fiscal year 2026 also appeared to disappoint investors. Asana forecasts Q2 adjusted earnings between $0.04 and $0.05 per share, in line with analyst expectations of $0.04. However, the projected revenue range of $192 million to $194 million barely meets the consensus estimate of $192.19 million. For the full fiscal year 2026, Asana raised its adjusted EPS guidance to $0.22, up from the previous range of $0.19 to $0.20, but still below the analyst estimate of $0.33. The company also widened its revenue outlook to a range of $775 million to $790 million, which falls short of the $857.76 million estimate.

The after-hours plunge came as a surprise to some investors, as Asana's stock initially surged 14% following the earnings release. The reversal may indicate that market participants are concerned about the company's ability to maintain growth and profitability in an increasingly competitive landscape. Additionally, the lower-than-expected revenue guidance suggests that Asana may be facing challenges in expanding its customer base or increasing spending from existing clients.