Domo (DOMO) Stock Forecast & Price Target

Domo Inc. has demonstrated a robust financial outlook, highlighted by a significant increase in long-term subscription remaining performance obligations (RPO), which rose 44.1% year-over-year to reach $189.6 million. The company's total subscription RPO also improved by 19.5% year-over-year, signaling strong customer commitment to multi-year contracts, bolstered by a gross retention rate of 85%. Additionally, Domo has revised its FY2026 revenue guidance upward to a range of $316-320 million, indicating positive growth prospects and an improvement in earnings per share expectations.

Domo Inc. faces significant challenges, as evidenced by its substantial net operating loss carryforwards exceeding $2.5 billion, which may indicate underlying operational inefficiencies and a turbulent financial position. The company is also exposed to a range of key risks, including intense competition, rapid technological change, and regulatory pressures in the data and artificial intelligence sectors, which could hinder its growth trajectory. Furthermore, the potential for unsuccessful product launches and management instability raises concerns about Domo's ability to effectively transition to a partner ecosystem and new consumption model, further compounding the negative outlook.