New York, May 11, 2026, 18:04 EDT
monday.com Ltd. topped Wall Street’s Q1 forecasts and bumped up its 2026 sales target Monday, crediting momentum with bigger clients and quicker adoption of AI-driven offerings and pricing. Revenue jumped 24% to $351.3 million, beating the consensus near $339 million. Adjusted diluted EPS landed at $1.15, also topping the $0.96 estimate.
monday.com’s report is drawing eyes, with the stock still battered—down roughly 51% for the year, per Barron’s—even after a rally Monday. The company has been caught up in the broader AI-driven selloff among software players; investors are still debating if AI agents will boost subscription revenues or make some workflow products obsolete.
monday.com (MNDY) ended regular Nasdaq trading at $76.91, a 6.7% move higher, but the stock retreated in after-hours action. Even after the day’s jump, shares remain a long way from the 52-week peak of $316.98—a single quarter of results hasn’t been enough to reverse the deep selloff in software names.
The Tel Aviv-based firm reported GAAP operating income at $19.8 million and non-GAAP operating income of $49.0 million. GAAP net income landed at $28.0 million. Non-GAAP results leave out items like share-based compensation; annual recurring revenue, or ARR, refers to the value of subscription contracts on an annualized basis. Customers generating more than $100,000 in ARR increased 39% to 1,844, while those above $500,000 jumped 74% to 99.
Co-founders and co-CEOs Roy Mann and Eran Zinman described the quarter as one where monday.com was “executing with discipline” as well as “building with ambition.” Chief Financial Officer Eliran Glazer pointed to AI-driven productivity, saying revenue could increase “without growing headcount in lockstep.” Monday Investor Relations
This wasn’t just about a product refresh. During the earnings call, Zinman emphasized that rolling out the monday AI Work Platform was “not a feature release or a rebrand.” The company is steering new customers toward a seats-plus-credits pricing structure—blending the standard user seats with AI usage credits. The Motley Fool
AI drove roughly 10% of net new ARR for the quarter, executives said, but Zinman flagged to analysts that agent and token usage is still “really hard to model.” The main issue for investors: can monday.com actually monetize AI, or will rivals beat it on price? The Motley Fool
monday.com said it’s acquiring OneAI, aiming to integrate the startup’s voice-agent tech into its AI suite and CRM offering. OneAI’s tools are already in use in production settings, according to Zinman, but he noted that rolling them out to a broader customer base is still a tricky process.
monday.com is projecting second-quarter revenue between $354 million and $356 million, a gain of 18% to 19%. Looking further out to 2026, the company now sees revenue coming in at $1.466 billion to $1.474 billion, which would be 19% to 20% higher. Adjusted free cash flow is forecast at $280 million to $290 million. These figures factor in a foreign-exchange drag of 100 to 200 basis points—a basis point being one-hundredth of a percentage point.
Piper Sandler bumped its price target on monday.com up to $90 from $85 and stuck with its neutral call, MarketBeat reported. The latest numbers there show 17 buys, seven holds and a lone sell, with the average price target sitting at $144.30. That spread says plenty: stronger numbers on the table, but conviction hasn’t caught up.
Monday.com isn’t alone here. Players like Asana, Smartsheet, and Atlassian’s Jira all face scrutiny—investors want to see if AI can actually push customers further into these workflows, not just undercut demand for project-management tools.
The risk stands out. Management is projecting a dip in net dollar retention later this year—so, existing client spending (after factoring in churn, downgrades, and upgrades) could slip. There’s also a margin squeeze looming if AI computing costs climb more quickly than revenue does. On top of that, the company flagged its continued dependence on both traditional and AI-driven search traffic as a risk to the business.
monday.com repurchased roughly 7.27 million ordinary shares last quarter, spending $553 million and cutting its buyback authorization down to $182 million. The move could boost per-share figures, though it’s a hit to cash reserves—money the company might need as it continues pouring funds into AI expansion and acquisitions.
