Monday.com Reports Better-Than-Expected Q4 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy MNDY?
Source: Benzinga
- Revenue Growth: Monday.com reported Q4 revenue of $334 million, reflecting a 24.6% year-on-year increase and exceeding expectations by $4.9 million, indicating stable market performance.
- Stable Net Recurring Revenue: The company's net recurring revenue (NRR) remained stable at 110% in Q4, with expectations to maintain this level through 2026, suggesting strong customer retention.
- 2026 Revenue Guidance: Monday.com provided a revenue forecast of $1.457 billion for 2026, significantly below the consensus estimate of $1.5 billion, reflecting a cautious outlook on future growth.
- Adjusted Cash Flow Expectations: The adjusted free cash flow guidance was set at $283 million, which is $121 million below initial market estimates, indicating a strategic shift towards higher ROI opportunities and improved customer retention.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MNDY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MNDY
Wall Street analysts forecast MNDY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 73.630
Low
195.00
Averages
235.58
High
310.00
Current: 73.630
Low
195.00
Averages
235.58
High
310.00
About MNDY
Monday.Com Ltd is an Israel-based company engaged primarily in the software sector. The Company provides cloud-based platform that enables its users to create custom applications and project management software. The platform offers a Work Operating System (Work OS) that provides modular building blocks to create software applications and work management tools. This system is designed to enhance team collaboration and streamline workflows across various business functions, including project management, CRM, marketing, and more. The Company has teams in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev, and Sydney. The Company customize its platform to suit any business vertical and serves customers worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Monday.com Shares Plunge 25% Despite Strong Earnings Report
- Earnings Beat Expectations: Monday.com reported a 25% year-over-year revenue increase to $333.9 million, with adjusted earnings falling from $1.08 to $1.04 per diluted share, still surpassing Wall Street's expectations of $0.92, demonstrating resilience in the market.
- Guidance Withdrawal: The management withdrew its 2027 guidance due to currency exchange pressures and the evolving AI landscape, which many investors interpreted as a sign that AI agents threaten its project management business, leading to a 20.1% drop in stock price on that day.
- Overreaction in Market: Despite the significant stock drop, analysts believe the reaction was excessive, as Monday.com still projects approximately 18% revenue growth and 28% higher adjusted operating profits in 2026, indicating strong long-term growth potential.
- AI Strategy Response: The company has launched its own AI agent platform, allowing clients to integrate multi-step AI tools into their Work OS applications, indicating that Monday.com is actively addressing AI challenges and may turn them into business opportunities.
See More
Monday.com Beats Earnings Expectations but Stock Plummets
- Strong Earnings Report: Monday.com reported a 25% year-over-year revenue increase, reaching $333.9 million, surpassing Wall Street's expectation of $329.5 million, indicating robust performance in the project management sector.
- Decline in Adjusted Earnings: Despite the revenue beat, adjusted earnings per share fell from $1.08 to $1.04, below the analyst consensus of $0.92, reflecting profitability pressures the company is facing.
- Withdrawal of 2027 Guidance: Management withdrew its 2027 financial guidance due to currency fluctuations and AI market uncertainties, leading to a significant drop in investor confidence and a 20.1% stock price decline on the day of the report.
- AI Challenges and Opportunities: The company has launched its own AI agent platform, allowing clients to integrate multi-step AI tools into their Work OS applications, and management projects an 18% revenue growth and a 28% increase in adjusted operating profits by 2026, suggesting potential for future growth despite current challenges.
See More
Monday.com Lowers 2027 Targets Amid AI Demand Volatility
- Target Revision: Monday.com has withdrawn its 2027 targets due to demand volatility from small businesses and rapid changes in the AI industry, leading to a significant drop in stock price and raising investor concerns about future performance.
- AI Tool Success: Despite the AI threat, Monday.com's recently launched AI Vibe tool has become the fastest product in the company's history to exceed $1 million in annual recurring revenue, highlighting its potential in project management and workflow automation.
- Pricing Strategy: Monday Vibe charges customers based on the number of apps published, with a 10-app plan costing $100 per month and a 25-app plan at $250 per month; despite the high cost, solid adoption rates indicate strong market demand.
- Increased Customer Stickiness: By offering an easy way to build custom applications, Monday.com enhances customer integration, raising switching costs and establishing a foundation for long-term growth amidst rapid AI advancements.
See More
monday.com Faces Investigation Over Financial Guidance
- Investigation of Financial Commitments: Levi & Korsinsky, LLP is investigating whether monday.com Ltd. made forward-looking financial commitments without adequately disclosing known headwinds, leading to a reduction in its 2026 guidance that may affect shareholder rights.
- Weak Market Performance: The company acknowledged persistent weakness in its 'no-touch' marketing channel for small and medium businesses in its 2026 guidance, alongside a foreign exchange drag of 100-200 basis points due to Israeli shekel appreciation, highlighting a challenging market environment.
- Increased AI Investment: monday.com is ramping up investments in AI products, which is expected to reduce gross margins from 90% to the mid-to-high 80s, while R&D spending rose from 17% to 19% of revenue, impacting near-term profitability.
- Significant Stock Decline: Following the earnings call on February 9, 2026, monday.com's stock fell by 13-14%, extending its decline to approximately 70% from its 52-week highs, severely undermining investor confidence in the company's future growth prospects.
See More
monday.com Under Investigation for Financial Disclosures
- Investigation of Financial Commitments: Levi & Korsinsky, LLP is investigating whether monday.com Ltd. made forward-looking financial commitments without adequately disclosing known headwinds, leading to a reduction in its 2026 guidance that may affect shareholder rights.
- Weak Market Performance: The company acknowledged persistent weakness in its no-touch marketing channel for small and medium businesses in its 2026 guidance, with foreign exchange drag from Israeli shekel appreciation estimated at 100-200 basis points, indicating a challenging market environment.
- Rising Investment Costs: monday.com is increasing investments in AI products, forecasting a decline in gross margins from 90% to the mid-to-high 80s in FY2026, partly due to rising AI infrastructure costs, which may impact near-term profitability.
- Significant Stock Decline: Following the earnings call on February 9, 2026, monday.com's stock fell 13-14%, extending its decline to approximately 70% from its 52-week highs, reflecting investor concerns about the company's future growth prospects.
See More
AI Disruption Exaggerated! 4 Software Stocks to Consider Purchasing During the Dip
Market Reaction to AI Disruption: Software stocks experienced significant declines in 2025 and early 2026 due to fears surrounding AI disruption, although the sell-off was largely driven by emotional reactions rather than fundamental issues.
Salesforce's Position: Salesforce, a leading SaaS company, is highlighted as a key player in the software market, with its AI-driven customer relationship services expected to rebound and stabilize, despite current market volatility.
Analyst Sentiment: Analysts maintain a positive outlook on Salesforce, with a majority rating it as a "Buy" and projecting a minimum upside of 15%, indicating confidence in its long-term growth potential.
Investment Trends: Institutions are accumulating shares of Salesforce, reflecting a belief in its value proposition and growth trajectory, with expectations for continued strong cash flow and performance in 2026.
See More
Monday.com Shares Plunge 25% Despite Strong Earnings Report
- Earnings Beat Expectations: Monday.com reported a 25% year-over-year revenue increase to $333.9 million, with adjusted earnings falling from $1.08 to $1.04 per diluted share, still surpassing Wall Street's expectations of $0.92, demonstrating resilience in the market.
- Guidance Withdrawal: The management withdrew its 2027 guidance due to currency exchange pressures and the evolving AI landscape, which many investors interpreted as a sign that AI agents threaten its project management business, leading to a 20.1% drop in stock price on that day.
- Overreaction in Market: Despite the significant stock drop, analysts believe the reaction was excessive, as Monday.com still projects approximately 18% revenue growth and 28% higher adjusted operating profits in 2026, indicating strong long-term growth potential.
- AI Strategy Response: The company has launched its own AI agent platform, allowing clients to integrate multi-step AI tools into their Work OS applications, indicating that Monday.com is actively addressing AI challenges and may turn them into business opportunities.
See More
Monday.com Beats Earnings Expectations but Stock Plummets
- Strong Earnings Report: Monday.com reported a 25% year-over-year revenue increase, reaching $333.9 million, surpassing Wall Street's expectation of $329.5 million, indicating robust performance in the project management sector.
- Decline in Adjusted Earnings: Despite the revenue beat, adjusted earnings per share fell from $1.08 to $1.04, below the analyst consensus of $0.92, reflecting profitability pressures the company is facing.
- Withdrawal of 2027 Guidance: Management withdrew its 2027 financial guidance due to currency fluctuations and AI market uncertainties, leading to a significant drop in investor confidence and a 20.1% stock price decline on the day of the report.
- AI Challenges and Opportunities: The company has launched its own AI agent platform, allowing clients to integrate multi-step AI tools into their Work OS applications, and management projects an 18% revenue growth and a 28% increase in adjusted operating profits by 2026, suggesting potential for future growth despite current challenges.
See More
Monday.com Lowers 2027 Targets Amid AI Demand Volatility
- Target Revision: Monday.com has withdrawn its 2027 targets due to demand volatility from small businesses and rapid changes in the AI industry, leading to a significant drop in stock price and raising investor concerns about future performance.
- AI Tool Success: Despite the AI threat, Monday.com's recently launched AI Vibe tool has become the fastest product in the company's history to exceed $1 million in annual recurring revenue, highlighting its potential in project management and workflow automation.
- Pricing Strategy: Monday Vibe charges customers based on the number of apps published, with a 10-app plan costing $100 per month and a 25-app plan at $250 per month; despite the high cost, solid adoption rates indicate strong market demand.
- Increased Customer Stickiness: By offering an easy way to build custom applications, Monday.com enhances customer integration, raising switching costs and establishing a foundation for long-term growth amidst rapid AI advancements.
See More
monday.com Faces Investigation Over Financial Guidance
- Investigation of Financial Commitments: Levi & Korsinsky, LLP is investigating whether monday.com Ltd. made forward-looking financial commitments without adequately disclosing known headwinds, leading to a reduction in its 2026 guidance that may affect shareholder rights.
- Weak Market Performance: The company acknowledged persistent weakness in its 'no-touch' marketing channel for small and medium businesses in its 2026 guidance, alongside a foreign exchange drag of 100-200 basis points due to Israeli shekel appreciation, highlighting a challenging market environment.
- Increased AI Investment: monday.com is ramping up investments in AI products, which is expected to reduce gross margins from 90% to the mid-to-high 80s, while R&D spending rose from 17% to 19% of revenue, impacting near-term profitability.
- Significant Stock Decline: Following the earnings call on February 9, 2026, monday.com's stock fell by 13-14%, extending its decline to approximately 70% from its 52-week highs, severely undermining investor confidence in the company's future growth prospects.
See More
monday.com Under Investigation for Financial Disclosures
- Investigation of Financial Commitments: Levi & Korsinsky, LLP is investigating whether monday.com Ltd. made forward-looking financial commitments without adequately disclosing known headwinds, leading to a reduction in its 2026 guidance that may affect shareholder rights.
- Weak Market Performance: The company acknowledged persistent weakness in its no-touch marketing channel for small and medium businesses in its 2026 guidance, with foreign exchange drag from Israeli shekel appreciation estimated at 100-200 basis points, indicating a challenging market environment.
- Rising Investment Costs: monday.com is increasing investments in AI products, forecasting a decline in gross margins from 90% to the mid-to-high 80s in FY2026, partly due to rising AI infrastructure costs, which may impact near-term profitability.
- Significant Stock Decline: Following the earnings call on February 9, 2026, monday.com's stock fell 13-14%, extending its decline to approximately 70% from its 52-week highs, reflecting investor concerns about the company's future growth prospects.
See More
AI Disruption Exaggerated! 4 Software Stocks to Consider Purchasing During the Dip
Market Reaction to AI Disruption: Software stocks experienced significant declines in 2025 and early 2026 due to fears surrounding AI disruption, although the sell-off was largely driven by emotional reactions rather than fundamental issues.
Salesforce's Position: Salesforce, a leading SaaS company, is highlighted as a key player in the software market, with its AI-driven customer relationship services expected to rebound and stabilize, despite current market volatility.
Analyst Sentiment: Analysts maintain a positive outlook on Salesforce, with a majority rating it as a "Buy" and projecting a minimum upside of 15%, indicating confidence in its long-term growth potential.
Investment Trends: Institutions are accumulating shares of Salesforce, reflecting a belief in its value proposition and growth trajectory, with expectations for continued strong cash flow and performance in 2026.
See More
