Monday.com (NASDAQ: MNDY) reported stronger-than-expected second-quarter results, beating Wall Street estimates for both earnings and revenue. However, the company’s shares fell 5.5% in premarket trading after its third-quarter revenue outlook disappointed investors.
Monday.com Beats Q2 Earnings Estimates
The AI-powered work management platform reported adjusted earnings of $1.48 per share for the second quarter.
That came comfortably above analysts’ consensus estimate of $1.11 per share.
Revenue reached $364.6 million, also exceeding Wall Street expectations of $355.53 million. Sales increased 22% year-on-year from $299 million during the same period last year.
Monday.com also posted record adjusted operating income of $61.1 million.
Its adjusted operating margin improved to 17%, up from 15% in the second quarter of 2025.
Weak Q3 Guidance Pressures Monday.com Stock
Despite the strong quarterly results, investors focused on Monday.com’s weaker-than-expected third-quarter outlook.
The company expects Q3 revenue of between $368 million and $370 million.
That range falls below analysts’ consensus forecast of approximately $372.85 million.
At the midpoint of the guidance, revenue would reach about $369 million. This would represent annual growth of roughly 16% to 17%.
That would mark a noticeable slowdown from the 22% year-on-year growth recorded during the second quarter.
The weaker growth outlook helped push Monday.com shares lower in premarket trading despite the earnings beat.
AI Products Become a Bigger Growth Driver
Monday.com continues to expand its focus on artificial intelligence as part of its long-term growth strategy.
Co-founders and co-CEOs Roy Mann and Eran Zinman said the second-quarter performance strengthened their confidence in the company’s strategy and encouraged management to accelerate its plans.
Annual recurring revenue from Monday.com’s AI products doubled compared with the first quarter.
AI products also accounted for 17% of the company’s net new annual recurring revenue during Q2.
Management said customer demand for its new AI-focused direction continues to perform ahead of expectations.
Monday.com Maintains Strong 2026 Revenue Outlook
For the full 2026 financial year, Monday.com expects revenue of between $1.466 billion and $1.474 billion.
That would represent year-on-year growth of approximately 19% to 20%.
The company also forecasts adjusted operating income of between $230 million and $234 million.
The outlook suggests Monday.com continues to expect solid full-year expansion despite anticipating slower revenue growth during the third quarter.
High-Value Customer Growth Remains Strong
Monday.com also reported strong growth among its largest customers.
The number of customers generating more than $100,000 in annual recurring revenue increased 37% year-on-year to 2,019.
Meanwhile, customers contributing more than $500,000 in annual recurring revenue climbed 68% to 114.
Growth among these high-value accounts highlights increasing adoption of Monday.com’s platform among larger organizations.
Investors Focus on Slowing Revenue Growth
Monday.com delivered a solid second quarter, with earnings, revenue and operating income all showing strong performance.
However, the market reaction shows that investors remain highly focused on the company’s future growth rate.
While expanding AI adoption and strong growth among large customers provide encouraging signals, the weaker third-quarter revenue guidance has raised concerns about slowing momentum.
Investors will now be watching whether Monday.com’s growing AI business can help accelerate revenue growth during the remainder of 2026.
