Shares of Domo (DOMO 26.90%) absolutely soared on Thursday. The stock had gained 30.5% at 1:30 p.m. ET, driven by a robust earnings report.
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Domo's Q1 2026 report by the numbers
The cloud-based software specialist reported $80.1 million of top-line revenue in the first quarter of fiscal year 2026, unchanged from the year-ago period. Further down the income statement, Domo saw an adjusted net loss of $0.09 per share. That's a strong improvement from a net loss of $0.33 per share. The average Wall Street analyst had expected a larger loss of roughly $0.11 per share.
Beyond the usual headline numbers, Domo expanded its subscription-based list of unfilled orders by 24% year over year. Most of the new business appears to be of a long-term nature. The unfilled orders are expected to convert into actual revenues at a much faster rate in calendar year 2026 and beyond.
How to start a Domo position today
Domo CEO Josh James highlighted the company's innovative approach to a dynamic technology market. "Our Q1 momentum is proof positive that our strategy is fueling powerful, innovative solutions for our customers," he said in a prepared statement. "We're not just keeping pace in the fast-moving world of data and AI -- we're leading the charge."
Looking ahead, Domo's management expects second-quarter and full-year sales to remain comparable to the results of fiscal year 2025. In other words, there's a big pot of future revenues brewing behind the scenes, and investors need to be patient with a gradual process of generating revenues.
As such, the stock may be prone to volatility in the next few quarters. If you want to pounce on this stock before it gets too expensive, I suggest splitting that investment in at least three parts. That's a time-honored method to build a fresh stock position without worrying too much about short-term price changes.
