Shares of Navan (NAVN 0.58%) rocketed higher on Thursday after the artificial intelligence (AI)-driven business travel and expense platform announced impressive growth figures.
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Redefining travel
Navan's revenue jumped 35% year over year to $178 million in its fiscal 2026 fourth quarter, which ended on Jan. 31.
Navan's tools help to simplify corporate travel operations. Its AI-powered travel assistant, Navan Edge, can schedule flights, book hotels, manage itineraries, and make restaurant reservations. And its new AI agent, Expense Chat, automates expense reports.
"Our AI-first platform is winning the enterprise market by replacing fragmented legacy systems with a unified, scalable solution," CEO Ariel Cohen said.
NASDAQ: NAVN
Key Data Points
Navan's profitability also improved as it scaled its revenue base. Its gross margin increased to 71% from 68% in the year-ago quarter.
In turn, Navan's adjusted operating income rose to $1 million, up from a loss of $14 million in the prior-year period.
AI is an opportunity, rather than a threat
Many software stocks have sold off in recent weeks as investors have grown fearful of AI's disruptive potential. Navan, however, is embracing the technology to provide more cost savings to its customers. It's a sound strategy, and one that's set to fuel its growth in the coming years.
Looking ahead, Navan sees revenue rising roughly 24% to $870 million in fiscal 2027. The company also expects to generate about $60 million in adjusted operating income, up from $37 million in fiscal 2026.
"We enter FY'27 with a strong balance sheet and a clear path to continue expanding margins while investing in high-conviction innovation," chief financial officer Aurélien Nolf said.
