Shares of Domo Inc. (DOMO) are experiencing a sharp pre-market plunge of 14.63% on Thursday, as investors react to the cloud-based data analytics company's disappointing forward guidance despite beating expectations in its second-quarter fiscal 2026 results.

For Q2, Domo reported better-than-expected numbers with 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 bolstered by strong subscription remaining performance obligations (RPO) growth of 19% year-over-year and a record non-GAAP operating margin of 8%.

However, the stock's dramatic decline appears to be driven by Domo's weak outlook for Q3 and the full fiscal year 2026. 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 has likely triggered the sharp sell-off in pre-market trading. 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.