Asana ASAN shares have surged 42.8% in the past six months compared with the Zacks  Internet - Software industry’s return of 20.1% and the broader Zacks Computer & Technology sector’s growth of 6.6%.

The outperformance can be attributed to the successful launch of AI Studio in the third quarter of fiscal 2025, which drove significant customer demand, increased multi-year deals, and expansion across various industry verticals, further solidifying its market presence.

This surge in demand is also reflected in Asana’s growing customer base. Asana’s number of Core customers, those spending $5,000 or more annually, rose to 23,609, up 11% year over year, reflecting stronger product value. 

Additionally, customers spending $100,000 or more annually rose to 683, marking an 18% year-over-year increase, further highlighting Asana’s appeal to larger organizations.

ASAN Benefits From Expanding Clientele

Asana’s expanding clientele, which includes Datacom, MasterCard MA and Alphabet GOOGL, has been a major growth driver for its success.

In the third quarter of fiscal 2025, Asana launched a partnership with Mastercard, offering Mastercard Business cardholders a 20% rebate on an annual subscription to first-time Asana customers. 

This collaboration aimed to provide enhanced value to businesses using Asana, helping them streamline their work management processes while benefiting from cost savings through the rebate program.

Asana’s expanding relationship with Alphabet is noteworthy. Alphabet has included Asana's work management program in the majority of its workplaces, which significantly improves team communication and organization.

ASAN Benefits From AI to Streamline Project Management

Asana’s expanding portfolio has been noteworthy. In the third quarter of fiscal 2025, Asana launched Asana AI Studio, a no-code builder that enables teams to design AI-powered Smart workflows directly within its existing platform. 

This tool helps automate project coordination, reduce busywork, and improve cross-functional collaboration by embedding AI agents that manage tasks across the entire project lifecycle.

Building on this success, Asana’s AI capabilities have helped Morningstar MORN streamline project management by standardizing work intake processes. Leveraging the power of Asana AI Studio, Morningstar enhances efficiency with Smart workflows, automating project evaluation and prioritization and driving further improvements in its operational effectiveness.

ASAN Offers Solid Top-Line Growth Guidance

For fourth-quarter fiscal 2025, ASAN expects revenues between $187.5 million and $188.5 million, indicating a year-over-year increase of 10%. Non-GAAP net loss per share is expected to be between $0.02 and $0.01 per share.

For fiscal 2025, ASAN expects revenues between $723 million and $724 million, indicating a year-over-year increase of 11%. Non-GAAP net loss per share is expected to be between 15 cents and 14 cents.

Earnings Estimate Shows Upward Trend

The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is currently pegged at $188.11 million, indicating growth of 9.91% from the figure reported in the year-ago quarter.

The consensus mark for fourth-quarter fiscal 2025 loss is pegged at 1 cent per share, which has remained unchanged over the past 30 days. The figure indicates a year-over-year increase of 92.31%.

The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $722.99 million, indicating 10.80% growth year over year. 

The consensus mark for fiscal 2025 loss is pegged at 14 cents per share, which has remained unchanged over the past 30 days. The figure indicates a year-over-year increase of 30%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

What Should Investors Do With ASAN Stock?

We point out that ASAN stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.

In terms of the forward 12-month Price/Sales ratio, ASAN is trading at 5.83, higher than its median of 4.06 and the industry’s 2.97.

However, ASAN’s robust portfolio and expanding partner base are key drivers that make the stock attractive for long-term investors. This is why we believe the premium valuation is justified.

ASAN stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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