NEW YORK, June 3, 2026, 14:30 (EDT)
- Domo shares were down about 9% at $3.89 in afternoon trading, underperforming a weak software tape.
- The company announced a healthcare AI workflow product with Regional One Health Solutions, built on Amazon Web Services.
- Domo’s fiscal first-quarter results are due June 9 after the close, pushed back from June 4.
Domo Inc shares fell sharply on Wednesday even after the data-software company announced a healthcare artificial-intelligence product built with Regional One Health Solutions and Amazon Web Services. The stock was down about 9.2% at $3.89 in afternoon trading, erasing part of a recent bounce.
The timing is awkward. Investors have less than a week before Domo reports fiscal first-quarter results, and the company is also in a strategic review, a process that can lead to a sale, investment or no deal at all. Domo said in February its board was exploring “strategic alternatives” and had not set a timetable. Domo
At about 2:14 p.m. ET, Domo had traded between $3.865 and $4.36, with volume near 401,000 shares. Its market value was about $158 million, according to market data.
Domo said the new product embeds AI — software that uses data models to automate or support decisions — into healthcare workflows, the routine steps clinicians, finance teams and operators follow to get work done. Regional One Health Solutions brings healthcare applications, while Domo provides its AI and Data Products Platform and AWS supplies the cloud infrastructure.
The companies pointed to SmartRev, a revenue-cycle application that they said found more than $5 million in revenue opportunity within three months in one deployment. Another application, PxEngine, analyzes patient feedback and feeds action plans into nursing workflows, with early results improving some experience measures from the 30th to the 90th percentile.
“This is what AI looks like in production,” Matt Mecham, Domo’s chief customer officer, said in the release. Niranjani Radhakrishnan, CEO of Regional One Health Solutions, said healthcare needs “systems that help people act.” Business Wire
The stock’s drop also came in a rough session for software. The iShares Expanded Tech-Software Sector ETF, an exchange-traded fund, or basket of shares, tracking software names, was down about 4.1%. Snowflake fell about 5.7% and Salesforce lost about 4.8%; both compete for data, analytics and enterprise-software budgets, though at much larger scale than Domo.
The next hard test is earnings. Domo said May 22 that first-quarter fiscal 2027 results, for the quarter ended April 30, will be released on June 9 after the market closes, with a call at 5 p.m. ET. The release and call had been scheduled for June 4.
In March, Domo reported fiscal fourth-quarter revenue of $79.6 million, up 1%, and subscription revenue of $73.4 million, up 2%. Billings — a demand gauge that tracks amounts invoiced or contracted before all revenue is recognized — rose 8% to $111.2 million. For the full fiscal year, revenue was $318.9 million, also up 1%, while the company posted a GAAP net loss of $59.3 million.
Wall Street has stayed guarded. D.A. Davidson analyst Lucky Schreiner cut the firm’s price target on Domo to $6 from $10 in March and kept a Neutral rating, with The Fly reporting that the firm wanted to see more upside to the revenue-growth outlook before becoming more constructive.
A June 1 proxy filing added governance context. Domo said founder and CEO Josh James controls a majority of the voting power, making the company a Nasdaq “controlled company”; Class A shares carry 40 votes each, while Class B shares carry one vote. That structure can matter in a strategic review because voting control does not move in line with economic ownership. SEC
But the downside case is still plain. The new healthcare AI product may take time to show up in revenue, software buyers could slow projects if budgets tighten, and the strategic review may not produce a transaction on terms investors like. Domo itself said there was no assurance the process would result in any outcome or deal.
For now, the market is asking for proof. A partner announcement helped frame Domo’s AI pitch; next week’s numbers will show whether that pitch is starting to change the growth line.
