DA Davidson lifts DOMO stock target to $9 after earnings beat

On Thursday, DA Davidson raised its price target on DOMO shares to $9.00, up from the previous $8.00, while maintaining a Neutral rating. The adjustment follows DOMO’s impressive first-quarter 2026 performance, which exceeded top-line expectations and included an upward revision of the full-year guidance for both revenue and earnings. The company, currently valued at $344 million, has shown strong momentum with a 20.76% year-to-date return. According to InvestingPro analysis, DOMO appears slightly undervalued based on its Fair Value calculation.

The company’s recent earnings report highlighted the effectiveness of its business model, which has led to increased operating leverage. This improvement was evidenced by DOMO achieving positive adjusted free cash flow (FCF) and, notably, reporting a positive operating margin for the first time in its history during the first quarter. The company maintains a robust gross profit margin of 74.45%, though InvestingPro data reveals challenges with short-term liquidity, indicated by a current ratio of 0.56.

DA Davidson’s analyst noted the company’s solid financial results and the upward momentum in its financial outlook. The firm expressed a continued cautious stance with the Neutral rating but acknowledged the company’s significant milestones. Get deeper insights into DOMO’s financial health and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro, along with additional analyst ratings and fair value estimates.

DOMO’s financial achievements have sparked interest in the investment community, and as a result, the company’s Chief Financial Officer and Head of Investor Relations will be featured at DA Davidson’s Technology Conference. The event is scheduled to take place in Nashville from June 9 to June 11, where they are expected to provide further insights into the company’s strategies and financial health.

Investors and analysts will be watching closely as DOMO’s management discusses the company’s direction and operational tactics at the upcoming conference. The raised price target reflects a positive view of the company’s recent performance and future prospects as outlined by the company’s guidance and financial achievements.

In other recent news, Domo Inc (NASDAQ:DOMO). reported its first-quarter fiscal year 2026 results, which exceeded analysts’ expectations. The company posted a non-GAAP EPS of ($0.09), beating the consensus estimate of ($0.20), and generated revenue of $80.1 million, surpassing the expected $77.9 million. This revenue performance marked an improvement over the previous quarter’s 2% decline. Subscription revenue was reported at $71.4 million, slightly above the consensus, although it experienced a 1% year-over-year decline. Domo’s billings amounted to $63.9 million, topping the consensus estimate despite a 2% year-over-year decrease. Notably, the company’s long-term subscription Remaining Performance Obligations (RPO) saw a growth of 24%, indicating a significant increase from the previous quarter. Additionally, Citizens JMP maintained a Market Outperform rating on Domo’s stock, with a $16.00 price target, reflecting optimism about the company’s results. The company also launched new AI-driven workflow automation tools and improved cloud data integrations, which have reportedly enhanced sales productivity by over 60%.

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