Navan Raises Fiscal 2026 Revenue Outlook to $930M Midpoint
Navan reported Q2 revenue of $232.79 million and narrowed its net loss, while raising full-year 2026 guidance to a midpoint of $930 million, signaling 32% year-over-year growth.
Navan (NAVN) reported second-quarter revenue of US$232.79 million, a 35% increase from US$171.95 million in the same period last year. The company narrowed its net loss to US$29.12 million, down from US$38.62 million a year earlier. For the first half of fiscal 2026, ending July 31, total sales reached US$453.02 million, up from US$329.41 million, while the net loss for the six-month period halved to US$49.62 million.
Basic loss per share from continuing operations improved significantly to US$0.11 in the quarter, compared with US$0.83 in the prior year period. Over the six-month span, basic loss per share was US$0.20, a sharp reduction from US$2.15 a year ago. According to data compiled by GN markets/earnings (en-US), these figures indicate that while the business remains unprofitable, the rate of loss is declining as revenue scales.
Management Raises Full Year Revenue Target
Navan adjusted its fiscal 2026 outlook, raising full-year revenue guidance to a range of US$927 million to US$933 million. Management stated that this range implies 32% year-over-year growth at the midpoint. For the immediate term, the company expects third-quarter revenue between US$253 million and US$255 million, which it described as representing 30% growth at the midpoint.
The upward revision in guidance provides investors with more concrete revenue markers to track through fiscal 2027. By extending the visibility window, Navan aims to anchor valuation discussions on specific operational milestones rather than speculative sentiment. The company’s strategy focuses on integrating corporate payments and card-based spend control to improve unit economics and gross margins.
Valuation Gap Persists Despite Price Volatility
Navan’s share price has experienced significant recent volatility, falling 23.07% over the past seven days and 26.95% over 30 days, despite a year-to-date gain of 31.51%. Against the last close of $21.37, the most followed valuation narrative suggests a fair value of approximately $30.80. This implies a potential undervaluation of 31%, based on assumptions regarding growth rates, margin expansion, and discount rates.
High Multiple Invites Valuation Scrutiny
However, the current price-to-sales ratio stands at 6.7x, significantly higher than the 3.1x average of peers and a calculated fair ratio of 3.2x. This premium multiple reflects the market’s expectation of continued high growth but also introduces valuation risk if sentiment cools. The bullish case relies on sustained business travel demand and Navan’s ability to maintain pricing power against larger AI and travel platforms.
