Monday.com falls despite beating estimates on weak guidance

Investing.com -- Monday.com (NASDAQ: MNDY) reported second quarter results that exceeded analyst expectations, but shares fell 5.5% premarket as the company's third quarter revenue guidance disappointed investors.

The AI work platform posted adjusted earnings per share of $1.48, surpassing the consensus estimate of $1.11. Revenue reached $364.6 million, beating the $355.53 million consensus and growing 22% YoY from $299.0 million in the prior year period. The company achieved record adjusted operating income of $61.1 million, representing a 17% margin, up from 15% in the second quarter of 2025.

However, monday.com's third-quarter revenue guidance of $368 million to $370 million fell short of the $372.85 million consensus estimate. The midpoint of $369 million implies YoY growth of only 16% to 17%, a deceleration from the second quarter's 22% growth rate.

"Q2 reinforced our conviction that our strategy is working and that it was time to move faster," said co-founders and co-CEOs Roy Mann and Eran Zinman. "ARR from AI products doubled from the first quarter, representing 17% of net new ARR in the second quarter, and customer response to our new direction continues to exceed our expectations."

For the full year 2026, monday.com expects revenue of $1.466 billion to $1.474 billion, representing 19% to 20% growth, with adjusted operating income of $230 million to $234 million.

The company added record numbers of high-value customers, with those spending over $100,000 in ARR growing 37% YoY to 2,019, while customers with over $500,000 in ARR increased 68% to 114.

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