Asana, Inc. announced that its AI‑powered work‑management platform is now available in the AWS Middle East (UAE) region, the first time the company has offered services on AWS Marketplace in that geographic area. The new availability allows regulated and public‑sector organizations in the Middle East to host Asana data locally in Dubai, meeting strict data‑residency and security requirements while maintaining the platform’s AI capabilities and real‑time collaboration features.
The expansion comes as Asana reports Q1 fiscal 2026 revenue of $187.3 million, up 9 % year‑over‑year, and a non‑GAAP operating income of $8.1 million, a turnaround from the $15.8 million operating loss reported in Q1 fiscal 2025. EPS of $0.05 beat analyst expectations of $0.02, a beat of $0.03, driven by cost discipline and a favorable mix of high‑margin AI Studio and Smart Workflow Gallery subscriptions that offset modest growth in legacy product lines.
Veit Brücker, General Manager for EMEA, said, "We're seeing organizations across the Middle East modernize how they work—and these aren't small projects. Many are running complex, cross‑agency transformation initiatives – from digital government programs to large‑scale infrastructure projects. Work at this scale needs clear ownership, real‑time visibility, and coordination across dozens of teams globally. But for programs this important, data location isn't negotiable. Built on AWS's secure infrastructure, Asana can confidently support organizations to scale AI‑powered ways of managing workflows while continuing to collaborate across teams." Jad Halaoui, Co‑founder and COO of Washmen, added, "Asana's availability in the AWS Middle East (UAE) Region is a meaningful step for organizations building technology‑driven operations. For Washmen, founded on the belief that traditional services can be reimagined through technology, local hosting strengthens the speed, reliability, and scalability needed to support a sophisticated operational ecosystem." Dustin Moskovitz, co‑founder and Chief Executive, noted, "Just months after launching AI Studio, we've already crossed $1 million in ARR and head into Q2 with a robust, rapidly growing global pipeline. With new offerings like the AI Studio Plus package and Smart Workflow Gallery, we're making these transformative AI capabilities even more accessible."
Investors have responded cautiously, with market sentiment tempered by concerns about slowing revenue growth and profitability. Analysts have adjusted their outlooks, with Piper Sandler lowering its price target from $19 to $14 and Keybanc upgrading to "Overweight" with a $18 target. Insider selling by Director Justin Rosenstein and other executives has added to the perception of uncertainty.
The UAE expansion positions Asana to capture a growing market of enterprise and government customers that demand local hosting, potentially opening a new revenue stream and strengthening its competitive stance in a region where data‑location is non‑negotiable. The move complements Asana's broader AI strategy, which has already generated over $1 million in ARR from AI Studio and is expected to accelerate adoption among large organizations. However, the company faces headwinds, including a decline in its dollar‑based net retention rate to 95 % in Q1 fiscal 2026 from 100 % in Q1 fiscal 2025, and a deceleration in revenue growth from 14 % in Q4 fiscal 2024 to 9 % in Q1 fiscal 2026. These factors underscore the need for continued focus on high‑margin AI offerings and efficient scaling to sustain profitability.
Overall, Asana's entry into the AWS Middle East (UAE) region marks a significant strategic milestone that aligns with its AI‑centric growth plan and addresses a critical market need for data residency. While the expansion is a positive development, it occurs amid broader financial and market challenges that investors will monitor closely.
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