Shares of Domo Inc. (DOMO) plummeted 10.53% in after-hours trading on Thursday, following the cloud-based data analytics company's release of its second-quarter fiscal 2026 results and forward guidance. Despite reporting better-than-expected Q2 numbers, investors appeared to focus on the disappointing outlook for the upcoming quarter and full fiscal year.

For the second quarter, Domo reported revenue of $79.7 million, surpassing analyst expectations 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 supported 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 guidance for Q3 and the full fiscal year 2026 fell short of market expectations. The company projects 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 forecasts 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, which likely triggered the sharp sell-off. 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.