Key Highlights
- Q1 revenue reached $351.3 million, representing 24.5% annual growth and exceeding analyst projections by 3.6%
- Non-GAAP earnings per share of $1.15 crushed the Street consensus of $0.93 by 23.4%
- Non-GAAP operating profit surpassed forecasts by 28.9%, while margins expanded to 14%
- Annual revenue outlook received a modest upward revision to $1.47 billion midpoint
- Shares of MNDY surged 20.9% to reach $87.28 following the earnings release
monday.com (MNDY) posted impressive first-quarter CY2026 financial results that propelled shares 20.9% higher to $87.28 during extended trading hours.
The work management platform generated $351.3 million in quarterly revenue, marking a 24.5% increase compared to the same period last year and surpassing Wall Street’s $339.1 million projection. The performance represents a solid 3.6% revenue outperformance.
On the bottom line, non-GAAP earnings per share came to $1.15, significantly exceeding the analyst consensus of $0.93 — representing a robust 23.4% upside surprise. This compares favorably to the $1.10 per share the company reported in the year-ago period on an adjusted basis.
The quarterly performance represents monday.com’s fourth straight period of simultaneously beating both top-line and bottom-line Wall Street projections.
Non-GAAP operating profit totaled $49.04 million, substantially ahead of the $38.06 million Street estimate — a meaningful 28.9% outperformance. The operating margin registered at 14%, while GAAP operating margin showed improvement to 5.6% versus 3.5% in the comparable quarter of the previous year.
Free cash flow margin soared to 29.3%, representing a dramatic improvement from the 17% recorded in the previous quarter. This metric deserves particular attention from investors.
CFO Eliran Glazer described the period as “a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations.”
Enterprise Customer Base Shows Resilience
The platform concluded the first quarter serving 4,547 enterprise clients generating at least $50,000 in annual recurring revenue. The net dollar retention rate registered at 114%, consistent with the preceding quarter.
This retention metric demonstrates that monday.com could have achieved 14.5% revenue expansion over the trailing twelve months purely from existing customer growth, without acquiring any new accounts — a compelling indicator of product engagement and customer satisfaction.
Total billings amounted to $396.9 million, climbing 21.6% on a year-over-year basis, though this growth rate trailed overall revenue expansion — potentially signaling extended payment terms or slower cash collections that warrant monitoring in upcoming quarters.
Management Raises Full-Year Outlook
Looking to the second quarter, executives projected revenue of approximately $355 million, closely aligned with the analyst consensus of $352.5 million. The full-year revenue forecast received a modest increase to $1.47 billion at the midpoint, up from the previous $1.46 billion outlook.
Wall Street analysts are currently modeling 16.6% revenue growth over the coming twelve months — representing a deceleration from the historical two-year growth trajectory of 28.8%, though remaining above the broader software sector average.
The prevailing analyst consensus for Q2 calls for earnings of $0.97 per share on revenue of $352.5 million. For the complete fiscal year, estimates project $4.15 in earnings per share on $1.46 billion in total revenue.
Notwithstanding the after-hours rally, MNDY shares remain down approximately 51.2% year-to-date, contrasting with an 8.1% advance for the broader S&P 500 index.
Zacks maintains a Rank #3 (Hold) rating on the equity, indicating expectations for near-term performance aligned with the overall market.
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