Investing.com -- Monday.com (NASDAQ: MNDY) shares plunged over 12% premarket after the AI work platform provider issued fiscal 2026 revenue guidance below analyst expectations, overshadowing solid fourth quarter results that beat estimates.

The company reported fourth-quarter adjusted earnings of $1.04 per share, exceeding analyst estimates of $0.92. Revenue reached $333.9 million, up 25% YoY and ahead of the $329.51 million consensus. However, investors focused on the company's disappointing outlook, as Monday.com projected fiscal 2026 revenue between $1.452 billion and $1.462 billion, below analyst expectations of $1.48 billion.

For the first quarter of fiscal 2026, the company expects revenue between $338 million and $340 million, representing approximately 20% YoY growth, with non-GAAP operating margin of 11% to 12%.

"We delivered another year of strong, disciplined execution in 2025, with 27% revenue growth and a 14% non-GAAP operating margin, while expanding our product portfolio and seeing strong adoption of our AI products," said Monday.com co-founders and co-CEOs Roy Mann and Eran Zinman.

The company continued to make progress with larger customers, reporting a 45% increase in customers with more than $100,000 in annual recurring revenue (ARR) to 1,756. Customers with more than $50,000 in ARR now represent 41% of total ARR, up from 36% a year earlier.

Monday.com's net dollar retention rate was 110%, with higher rates of 116% for customers with more than $50,000 in ARR. The company also noted that its monday vibe product became the fastest in the company's history to surpass $1 million in ARR.

Despite the strong quarter, foreign exchange rates created near-term pressure on margins, with the company projecting non-GAAP operating margin of 11% to 12% for fiscal 2026, assuming a negative FX impact of 100 to 200 basis points.