Navan Inc. on Sept. 9 presented results for its second fiscal quarter ended June 2026, reporting $233 million in revenue, a 35% increase from $172 million a year earlier. The corporate travel and expense management platform also lifted its full-year fiscal 2027 guidance for the second time this fiscal year.
Gross booking volume climbed 45% year-over-year to $3.0 billion from $2.1 billion in Q2 FY26. Payment volume rose 34% to $1.3 billion from $972 million. Non-GAAP gross profit reached $175 million with a 75% margin, a 200-basis-point improvement over the prior year’s 73%.
Non-GAAP operating income was $17 million, or 7% of revenue, compared with 5% a year earlier. On a trailing twelve-month basis, non-GAAP operating margin shifted from negative 22% in Q2 FY25 to positive 8% in Q2 FY27. Non-GAAP operating expenses totaled $158 million, up from $118 million a year earlier.
The company’s artificial intelligence initiative, Ava, handled approximately 60% of customer interactions during the quarter, up from 30% in Q1. More than 50% of AI model calls ran on Navan’s proprietary models in Q2, compared with 30% in the prior quarter. CEO Ariel Cohen said the company is “rebuilding the travel and expense experience around intelligence, orchestration, and action,” noting that Ava now handles complex tasks including rebooking stranded travelers, changing hotel reservations, and processing refunds.
Navan expects Q3 FY27 revenue of $253 million to $255 million, representing about 30% year-over-year growth, with non-GAAP operating income of $35.5 million to $36.5 million and a 14% operating margin. Full-year revenue guidance was raised to a midpoint range of $927 million to $933 million, implying 32% growth. Non-GAAP operating income guidance was lifted to $82 million to $86 million, implying a 9% operating margin, an increase of 372 basis points year-over-year.
On the customer side, Navan added Cummins, Enbridge, Evotec, Ingersoll Rand, Insight Enterprises, and Viessmann Generations Group as marquee enterprise customers. The company now serves 50 S&P 500 companies, up from 45 in the prior quarter. Request for proposal activity surged more than 200% year-over-year in the first half of fiscal 2027. The small and medium business segment posted a record trailing twelve-month new signed gross booking volume of $4.0 billion, up 60% year-over-year. Navan noted an estimated total addressable market of $185 billion for fiscal 2025.
In September, Navan acquired BoomPop, an AI-powered platform for meetings and events. The company said the unmanaged meetings and events sector represents roughly 30% of corporate travel spend, with about 52% of that spending remaining unmanaged. BoomPop carries an 80 Net Promoter Score and delivers approximately 30% average savings on event bookings.
Shares fell 17.45% in after-hours trading to $21.68 following the earnings release, after closing at $25.89 in regular-session trading, down 2.82%. The stock was trading approximately 30% below its 52-week high of $30.88.
