monday.com (NASDAQ:MNDY) Announces Earnings Results

monday.com (NASDAQ:MNDY) announced its quarterly earnings results on Monday. The company reported $1.48 EPS for the quarter, topping the consensus estimate of $1.11 by $0.37, FiscalAI reports. monday.com had a net margin of 8.87% and a return on equity of 8.10%. The business had revenue of $364.62 million for the quarter, compared to analysts’ expectations of $355.55 million. During the same quarter in the previous year, the company earned $1.09 EPS. The business’s quarterly revenue was up 21.9% compared to the same quarter last year.

Here are the key takeaways from monday.com’s conference call:

• Q2 revenue rose 22% year over year to $365 million, while non-GAAP operating margin improved to 17% from 15% a year ago. The company also reported record additions among customers with more than $100,000 and $500,000 in ARR.
• AI ARR doubled sequentially and accounted for 17% of net new ARR in Q2. Customers are increasingly consuming AI credits and topping up beyond their initial packages, suggesting a new expansion and monetization opportunity.
• Management is prioritizing enterprise and upmarket growth, supported by vendor consolidation demand and a planned expansion of forward-deployed engineering resources to help customers implement AI. Gross retention reached a historical high.
• Fiscal 2026 guidance calls for revenue of $1.466 billion-$1.474 billion, or 19%-20% growth, with management citing near-term disruption from its organizational restructuring and pressure from lapping prior price increases. Full-year NDR is expected to moderate to approximately 108%.
• The company reduced its global workforce by approximately 20% and expects headcount to remain about 20% lower by year-end. While most of the expected $100 million in annualized savings will be reinvested in AI, products, and talent, management acknowledged execution risk during the transition.

monday.com Stock Down 1.3%

MNDY stock opened at $87.47 on Wednesday. monday.com has a twelve month low of $57.50 and a twelve month high of $220.80. The stock has a market capitalization of $4.47 billion, a price-to-earnings ratio of 37.22, a price-to-earnings-growth ratio of 4.44 and a beta of 1.24. The firm’s fifty day simple moving average is $80.53 and its two-hundred day simple moving average is $79.06.

More monday.com News

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: monday.com exceeded second-quarter expectations, reporting adjusted earnings of $1.48 per share versus the $1.11 consensus estimate and revenue of $364.6 million, up 21.9% year over year. Operating margins improved, while AI product annual recurring revenue doubled from the prior quarter. monday.com Q2 Earnings and Revenue Report
• Positive Sentiment: Several analysts retained bullish views: TD Cowen reaffirmed a Buy rating with a $110 target, BTIG maintained Buy with a $105 target, Wells Fargo kept an Overweight rating with a $120 target, and Citi retained Buy despite reducing its target to $132. Analyst Ratings and Price Targets
• Neutral Sentiment: Piper Sandler reiterated its Neutral rating and $90 price target, while Capital One lowered monday.com to Equal Weight with a $95 target. The mixed recommendations indicate continued uncertainty about the pace of growth and the company’s transition toward AI and enterprise customers. Piper Sandler Rating Capital One Rating
• Negative Sentiment: Third-quarter revenue guidance of $368 million to $370 million, implying 16% to 17% growth, came in below Wall Street expectations. The company also reaffirmed full-year revenue guidance rather than raising it after the quarterly beat, disappointing investors seeking stronger forward momentum. monday.com Outlook Report
• Negative Sentiment: monday.com’s planned workforce reduction of roughly 20%, or about 630 employees, as it restructures around its AI Work Platform and enterprise customers adds execution risk and raises concerns about organizational disruption. monday.com Restructuring Analysis

Hedge Funds Weigh In On monday.com

A number of large investors have recently made changes to their positions in the company. T. Rowe Price Investment Management Inc. grew its stake in shares of monday.com by 15.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,274,910 shares of the company’s stock valued at $188,126,000 after buying an additional 165,996 shares during the last quarter. Renaissance Technologies LLC lifted its stake in shares of monday.com by 7.1% during the 4th quarter. Renaissance Technologies LLC now owns 1,129,090 shares of the company’s stock worth $166,609,000 after acquiring an additional 74,800 shares during the last quarter. State Street Corp boosted its holdings in monday.com by 3.8% during the 4th quarter. State Street Corp now owns 688,751 shares of the company’s stock valued at $101,632,000 after acquiring an additional 25,009 shares during the period. Alliancebernstein L.P. increased its stake in monday.com by 4.2% in the second quarter. Alliancebernstein L.P. now owns 605,510 shares of the company’s stock worth $190,421,000 after purchasing an additional 24,624 shares during the period. Finally, Amundi lifted its position in shares of monday.com by 2.6% during the fourth quarter. Amundi now owns 525,013 shares of the company’s stock worth $77,471,000 after purchasing an additional 13,515 shares during the last quarter. 73.70% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. TD Cowen reiterated a “buy” rating and issued a $110.00 target price on shares of monday.com in a research report on Tuesday. Oppenheimer set a $115.00 price objective on monday.com in a research note on Monday, May 11th. Jefferies Financial Group reaffirmed a “hold” rating and set a $95.00 price objective on shares of monday.com in a report on Monday. Piper Sandler reissued a “neutral” rating and issued a $90.00 target price on shares of monday.com in a report on Monday. Finally, Cantor Fitzgerald downgraded shares of monday.com from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $112.00 to $90.00 in a research note on Monday. Fifteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, monday.com currently has a consensus rating of “Moderate Buy” and a consensus price target of $124.25.

monday.com Company Profile

monday.com is a software-as-a-service (SaaS) company that provides a cloud-based Work Operating System (Work OS) designed to help teams plan, organize and track their work. The platform offers customizable workflows that support project management, task delegation, time tracking and collaboration across departments. monday.com’s visual interface enables users to create boards, automations and dashboards to centralize information and streamline processes without requiring extensive coding knowledge.

The company’s product portfolio includes monday Work OS, which can be adapted for use cases ranging from marketing campaign management and sales pipelines to software development sprints and human resources onboarding.