Monday.com Reports Strong Q4 but Weak Q1 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy MNDY?
Source: stocktwits
- Strong Earnings Report: Monday.com reported Q4 fiscal 2025 revenue of $333.9 million, a 25% year-over-year increase, with adjusted EPS of $1.04, both exceeding analyst expectations of $329.66 million and $0.92, indicating robust performance in its customer base.
- Weak Revenue Guidance: The company forecasts Q1 fiscal 2026 revenue between $338 million and $340 million, reflecting approximately 20% year-on-year growth, but this is below the consensus estimate of $342.87 million, raising concerns about future growth prospects.
- Strong Customer Retention: In Q4, Monday.com maintained a 110% revenue retention rate from existing customers, with clients having more than 10 users achieving 114% retention, and those generating over $50,000 or $100,000 in annual recurring revenue (ARR) reaching 116%, showcasing the resilience of its business model.
- Stock Price Reaction: Despite the strong earnings report, Monday.com's stock fell over 23% post-release, and has declined more than 69% over the past 12 months, reflecting investor pessimism regarding its future outlook.
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Analyst Views on MNDY
Wall Street analysts forecast MNDY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MNDY is 235.58 USD with a low forecast of 195.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 98.000
Low
195.00
Averages
235.58
High
310.00
Current: 98.000
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 Surpasses Earnings Projections, Yet Stock Sees Significant Decline.
- Stock Performance: Monday.com's stock experienced a significant decline following the release of its quarterly earnings report.
- Earnings vs. Outlook: Despite surpassing earnings expectations, the company's disappointing forecast for 2026 negatively impacted investor sentiment.
See More
Monday Exceeds Earnings Projections, Yet Stock Sees Significant Decline.
Stock Performance: Monday.com’s stock experienced a significant decline following the release of its quarterly earnings report.
Earnings Report: The company reported better-than-expected earnings for the quarter, indicating strong current performance.
Future Outlook: Despite the positive earnings, Monday.com provided a disappointing outlook for 2026, which contributed to the stock's drop.
Market Reaction: Investors reacted negatively to the outlook, leading to a plunge in the company's stock price.
See More
Monday.com Stock Plummets 19% on Weak Guidance Amid AI Disruption Concerns
- Weak Earnings Guidance: Monday.com forecasts revenue between $338 million and $340 million for the current quarter, falling short of the $343 million expected by analysts, indicating challenges in its business model amid AI disruption.
- Lowered Annual Revenue Outlook: The company projects full-year revenue between $1.452 billion and $1.462 billion, significantly below FactSet's estimate of $1.48 billion, reflecting market concerns about its future growth.
- Significant Stock Decline: Monday.com's stock plummeted over 19% on Monday, with shares losing half their value this year due to rising fears of AI disruption, signaling a decline in investor confidence in the software sector.
- Management's Response Strategy: Despite ongoing market volatility, management highlighted the implementation of new AI capabilities to enhance user conversion and engagement, indicating a proactive approach during the company's transformation process.
See More
Monday.com Issues Weak Guidance Amid AI Disruption Concerns
- Weak Financial Guidance: Monday.com forecasts revenue between $338 million and $340 million for the current quarter, falling short of the $343 million expected by analysts, indicating significant challenges amid rising AI tool pressures that could undermine investor confidence.
- Stock Price Plunge: The company's stock plummeted over 19% on Monday following the weak guidance, reflecting market concerns about the software sector's vulnerability to AI disruption, with Monday.com shares losing half their value this year.
- Market Uncertainty: Although management claims no current impact from AI companies, they anticipate ongoing market volatility due to near-term margin pressures from foreign exchange rates, which may affect the company's long-term strategy and investor sentiment.
- New Feature Development: During the earnings call, management highlighted the implementation of new AI capabilities, such as agents and a vibe feature, aimed at improving conversion rates and user engagement, demonstrating the company's adaptability and innovative intent in the face of competitive pressures.
See More
Monday.com Reports Strong Q4 but Weak Q1 Guidance
- Strong Earnings Report: Monday.com reported Q4 fiscal 2025 revenue of $333.9 million, a 25% year-over-year increase, with adjusted EPS of $1.04, both exceeding analyst expectations of $329.66 million and $0.92, indicating robust performance in its customer base.
- Weak Revenue Guidance: The company forecasts Q1 fiscal 2026 revenue between $338 million and $340 million, reflecting approximately 20% year-on-year growth, but this is below the consensus estimate of $342.87 million, raising concerns about future growth prospects.
- Strong Customer Retention: In Q4, Monday.com maintained a 110% revenue retention rate from existing customers, with clients having more than 10 users achieving 114% retention, and those generating over $50,000 or $100,000 in annual recurring revenue (ARR) reaching 116%, showcasing the resilience of its business model.
- Stock Price Reaction: Despite the strong earnings report, Monday.com's stock fell over 23% post-release, and has declined more than 69% over the past 12 months, reflecting investor pessimism regarding its future outlook.
See More
Market Update: Microsoft Downgrade, Kroger's New CEO Announcement
- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing that CEO Satya Nadella has lost the AI narrative and that the stock appears overpriced based on new free cash flow estimates, which may undermine investor confidence.
- Eli Lilly Acquires Orna: Eli Lilly announced the acquisition of biotech firm Orna Therapeutics for up to $2.4 billion, leading to a premarket surge in Eli Lilly and rival Novo Nordisk shares, indicating a positive market response towards biotech investments.
- Kroger's New CEO: Kroger's stock advanced nearly 7% in premarket trading after reports indicated that former Walmart executive Greg Foran will be appointed as the new CEO, having previously led Walmart's U.S. division for six years, suggesting a strategic shift for Kroger.
- Robinhood Upgrade: Wolfe Research upgraded Robinhood from hold to buy, despite the stock's recent decline amid a major cryptocurrency sell-off, as analysts believe its future potential remains strong, which could attract renewed investor interest.
See More
Monday.com Surpasses Earnings Projections, Yet Stock Sees Significant Decline.
- Stock Performance: Monday.com's stock experienced a significant decline following the release of its quarterly earnings report.
- Earnings vs. Outlook: Despite surpassing earnings expectations, the company's disappointing forecast for 2026 negatively impacted investor sentiment.
See More
Monday Exceeds Earnings Projections, Yet Stock Sees Significant Decline.
Stock Performance: Monday.com’s stock experienced a significant decline following the release of its quarterly earnings report.
Earnings Report: The company reported better-than-expected earnings for the quarter, indicating strong current performance.
Future Outlook: Despite the positive earnings, Monday.com provided a disappointing outlook for 2026, which contributed to the stock's drop.
Market Reaction: Investors reacted negatively to the outlook, leading to a plunge in the company's stock price.
See More
Monday.com Stock Plummets 19% on Weak Guidance Amid AI Disruption Concerns
- Weak Earnings Guidance: Monday.com forecasts revenue between $338 million and $340 million for the current quarter, falling short of the $343 million expected by analysts, indicating challenges in its business model amid AI disruption.
- Lowered Annual Revenue Outlook: The company projects full-year revenue between $1.452 billion and $1.462 billion, significantly below FactSet's estimate of $1.48 billion, reflecting market concerns about its future growth.
- Significant Stock Decline: Monday.com's stock plummeted over 19% on Monday, with shares losing half their value this year due to rising fears of AI disruption, signaling a decline in investor confidence in the software sector.
- Management's Response Strategy: Despite ongoing market volatility, management highlighted the implementation of new AI capabilities to enhance user conversion and engagement, indicating a proactive approach during the company's transformation process.
See More
Monday.com Issues Weak Guidance Amid AI Disruption Concerns
- Weak Financial Guidance: Monday.com forecasts revenue between $338 million and $340 million for the current quarter, falling short of the $343 million expected by analysts, indicating significant challenges amid rising AI tool pressures that could undermine investor confidence.
- Stock Price Plunge: The company's stock plummeted over 19% on Monday following the weak guidance, reflecting market concerns about the software sector's vulnerability to AI disruption, with Monday.com shares losing half their value this year.
- Market Uncertainty: Although management claims no current impact from AI companies, they anticipate ongoing market volatility due to near-term margin pressures from foreign exchange rates, which may affect the company's long-term strategy and investor sentiment.
- New Feature Development: During the earnings call, management highlighted the implementation of new AI capabilities, such as agents and a vibe feature, aimed at improving conversion rates and user engagement, demonstrating the company's adaptability and innovative intent in the face of competitive pressures.
See More
Monday.com Reports Strong Q4 but Weak Q1 Guidance
- Strong Earnings Report: Monday.com reported Q4 fiscal 2025 revenue of $333.9 million, a 25% year-over-year increase, with adjusted EPS of $1.04, both exceeding analyst expectations of $329.66 million and $0.92, indicating robust performance in its customer base.
- Weak Revenue Guidance: The company forecasts Q1 fiscal 2026 revenue between $338 million and $340 million, reflecting approximately 20% year-on-year growth, but this is below the consensus estimate of $342.87 million, raising concerns about future growth prospects.
- Strong Customer Retention: In Q4, Monday.com maintained a 110% revenue retention rate from existing customers, with clients having more than 10 users achieving 114% retention, and those generating over $50,000 or $100,000 in annual recurring revenue (ARR) reaching 116%, showcasing the resilience of its business model.
- Stock Price Reaction: Despite the strong earnings report, Monday.com's stock fell over 23% post-release, and has declined more than 69% over the past 12 months, reflecting investor pessimism regarding its future outlook.
See More
Market Update: Microsoft Downgrade, Kroger's New CEO Announcement
- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing that CEO Satya Nadella has lost the AI narrative and that the stock appears overpriced based on new free cash flow estimates, which may undermine investor confidence.
- Eli Lilly Acquires Orna: Eli Lilly announced the acquisition of biotech firm Orna Therapeutics for up to $2.4 billion, leading to a premarket surge in Eli Lilly and rival Novo Nordisk shares, indicating a positive market response towards biotech investments.
- Kroger's New CEO: Kroger's stock advanced nearly 7% in premarket trading after reports indicated that former Walmart executive Greg Foran will be appointed as the new CEO, having previously led Walmart's U.S. division for six years, suggesting a strategic shift for Kroger.
- Robinhood Upgrade: Wolfe Research upgraded Robinhood from hold to buy, despite the stock's recent decline amid a major cryptocurrency sell-off, as analysts believe its future potential remains strong, which could attract renewed investor interest.
See More
