Key Points

Domo's stock jumped more than 30% after a promising earnings report. Revenue stayed flat year over year, but the company narrowed its loss by a wide margin. A long (and growing) list of unfilled orders suggests strong revenue growth in the long run. 10 stocks we like better than Domo ›

Shares of Domo(NASDAQ: DOMO) absolutely soared on Thursday. The stock had gained 30.5% at 1:30 p.m. ET, driven by a robust earnings report.Image source: Getty Images.

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.

Should you invest $1,000 in Domo right now?

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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Domo Stock Skyrocketed Today was originally published by The Motley Fool

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