Asana, Inc. (NYSE: ASAN) rose about 5% intra-day on Wednesday after reporting third-quarter fiscal 2026 results that exceeded expectations and prompted the company to lift its full-year forecast, supported by solid execution and accelerating demand for its AI-driven features.

Asana posted adjusted earnings of $0.07 per share, topping analyst expectations of $0.06. Revenue came in at $201 million, above the $198.57 million consensus and up 9% year over year, surpassing the upper end of prior guidance.

The company delivered a notable improvement in profitability, reporting non-GAAP operating income of $16.3 million, or 8% of revenue, compared with a $7.6 million non-GAAP operating loss in the same period last year. Adjusted free cash flow totaled $13.4 million, a significant turnaround from negative $18.2 million a year earlier.

Customer metrics continued to strengthen, with the number of clients spending at least $100,000 annually increasing 15% to 785, while core customers spending $5,000 or more annually grew 8% to 25,413.

Asana raised its fiscal 2026 outlook and now expects revenue of $789 million to $791 million, above the consensus of $786 million. Adjusted EPS is projected at $0.25-$0.26, compared with analyst expectations of $0.24.