TLDR
- Monday.com (MNDY) reported Q4 EPS of $1.04, beating analyst estimates of $0.92 by $0.12
- Revenue hit $333.9 million, topping the $329.51 million consensus and growing 25% year-over-year
- Shares dropped 15% premarket on weak 2026 operating income guidance of $165-$175 million versus $218 million expected
- Full-year 2026 revenue outlook of $1.45-$1.46 billion missed Wall Street’s $1.48 billion forecast
- Stock down 34% year-to-date as software sector faces continued pressure
Monday.com shares tumbled in premarket trading Monday after the company delivered a solid earnings beat but issued 2026 guidance that fell short of expectations. The work-management platform reported fourth-quarter adjusted earnings of $1.04 per share.
That result beat the Street’s estimate of $0.92 per share. Revenue came in at $333.9 million, surpassing the $329.51 million consensus.
The 25% revenue growth from last year showed continued momentum in the business. But investors quickly focused on what’s ahead rather than what just happened.
2026 Guidance Misses Expectations
Monday.com projected 2026 operating income between $165 million and $175 million. Wall Street had been expecting $218 million.
That’s a miss of roughly $50 million at the midpoint. The company also guided for full-year revenue of $1.45 billion to $1.46 billion.
Analysts were looking for $1.48 billion. The revenue shortfall adds to concerns about growth deceleration.
Shares fell 15% in premarket trading following the announcement. The stock closed Friday at $98.00 after a difficult start to the year.
MNDY is down 34% in 2026 so far. Over the past three months, shares have declined 38.98%.
The 12-month performance shows a 69.99% drop. Monday.com has been caught in the broader software sector selloff that’s hammered growth stocks.
Analyst Sentiment and Recent Performance
Despite the stock’s struggles, analyst activity has been mostly positive. The company received 17 positive EPS revisions over the last 90 days.
Only one negative revision came through during that period. InvestingPro rates the company’s financial health as showing “good performance.”
The earnings beat demonstrates Monday.com can still execute on a quarterly basis. But the conservative outlook suggests management sees challenges ahead.
The operating income guidance gap raises questions about margin expectations. Profitability metrics appear to be under pressure despite revenue growth.
Software companies across the board have faced valuation compression this year. Higher interest rates and economic uncertainty have pushed investors toward value stocks.
Monday.com’s steep year-to-date decline reflects both sector trends and company-specific concerns. The Q4 results showed strength in the core business with revenue beating by $4.39 million.
Earnings per share topped estimates by about 13%. But the forward-looking statements overshadowed the backward-looking results.
The stock’s premarket reaction suggests investors aren’t willing to give management the benefit of the doubt. The 2026 guidance will be the focus of analyst questions and investor discussions.
Monday.com generated $333.9 million in Q4 revenue against $329.51 million expected while posting adjusted EPS of $1.04 versus $0.92 consensus.
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