monday.com (NASDAQ:MNDY) Releases Quarterly Earnings Results, Beats Estimates By $0.73 EPS

monday.com (NASDAQ:MNDY) posted its quarterly earnings results on Monday. The company reported $2.14 EPS for the quarter, topping the consensus estimate of $1.41 by $0.73, FiscalAI reports. The business had revenue of $377.54 million for the quarter, compared to analyst estimates of $369.17 million. monday.com had a return on equity of 9.09% and a net margin of 8.87%. The company’s quarterly revenue was up 19.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.16 EPS.

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

• Q3 revenue rose 19% year over year to $378 million, and non-GAAP operating margin reached a record 24%. However, Q4 revenue guidance implies growth of about 14%, while management expects NDR to fall to 107% and says current headwinds may persist into 2027.
• AI ARR reached $36 million, and monday agents recorded more than 6 million interactions in under two quarters. Adoption and usage are strongest among customers with $50,000 or more in ARR, where over 30% pay for AI credits.
• Management cited weaker SMB additions and higher SMB churn, longer enterprise sales cycles, and lingering disruption from the workforce reduction. It also said it sees no improvement in the downmarket top of funnel.
• The company is shifting toward an AI-first platform, larger enterprise customers, usage-based pricing, and hands-on implementation through monday Frontier. Executives called the transition strategic but said it will continue into 2027; Frontier may pressure margins, though they expect increased product and AI usage to offset the investment.
• Adjusted free cash flow was $63 million, but that measure excluded $47.2 million of restructuring-related cash payments; operating cash flow was $20.4 million. Management said slower ARR growth and longer sales cycles are weighing on cash generation.

monday.com Stock Down 9.1%

Shares of monday.com stock opened at $79.93 on Tuesday. monday.com has a 52 week low of $57.50 and a 52 week high of $169.76. The business’s fifty day simple moving average is $90.30 and its 200-day simple moving average is $82.81. The firm has a market cap of $4.09 billion, a PE ratio of 34.01, a price-to-earnings-growth ratio of 2.18 and a beta of 1.06.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on MNDY shares. Capital One Financial cut shares of monday.com from an “overweight” rating to an “equal weight” rating and set a $95.00 price objective for the company. in a research report on Monday, August 10th. TD Cowen downgraded shares of monday.com from a “buy” rating to a “hold” rating and reduced their target price for the stock from $110.00 to $105.00 in a research note on Tuesday, November 3rd. Zacks Research lowered shares of monday.com from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 15th. Citigroup decreased their target price on shares of monday.com from $154.00 to $132.00 and set a “buy” rating on the stock in a report on Tuesday, August 11th. Finally, Wells Fargo & Company dropped their price target on shares of monday.com from $130.00 to $120.00 and set an “overweight” rating for the company in a research note on Tuesday, August 11th. Ten research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. According to data from MarketBeat, monday.com has an average rating of “Hold” and a consensus price target of $105.17.

monday.com News Roundup

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

• Positive Sentiment: Q3 revenue rose 19.1% year over year to $377.5 million, topping expectations, while EPS of $2.14 also beat forecasts. Annual recurring revenue from AI features reached $36 million, offering evidence of traction in the company’s AI strategy. Monday.com: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Management expects 2026 revenue of about $1.47 billion to $1.48 billion, broadly in line with estimates. Some analysts argue that roughly 20% growth and the Q3 beat-and-raise support the company’s longer-term case, even as near-term headwinds persist. 2026 revenue outlook
• Negative Sentiment: Q4 revenue guidance of $380 million to $382 million came in below the $385.5 million consensus estimate. Investors are concerned that the AI-first strategy and push toward larger customers are creating transition pains, alongside slower growth and cautious customer spending. The softer outlook has overshadowed the quarterly beat. Monday.com falls despite Q3 beat, sees near-term operational headwinds
• Negative Sentiment: Analyst sentiment has also weakened: Needham downgraded MNDY to Hold from Buy, following downgrades from Canaccord and Loop Capital. BTIG trimmed its price target to $100 but maintained a Buy rating, providing a more favorable counterpoint. Needham downgrades monday.com to Hold

Insider Buying and Selling at monday.com

In related news, Director Aviad Eyal sold 2,000 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $100.04, for a total transaction of $200,080.00. Following the completion of the sale, the director directly owned 203,455 shares of the company’s stock, valued at approximately $20,353,638.20. This trade represents a 0.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 22.30% of the company’s stock.

monday.com Company Profile

monday.com Ltd. is a software company that provides a cloud-based platform for organizations to plan, manage and track work. Founded in 2012 as dapulse, the company adopted the monday.com name in 2017.

Its products include monday work management, monday CRM, monday dev and monday service. The platform offers tools for project and workflow management, customer relationship management, software development and service operations, with features for collaboration, automation and reporting.

Headquartered in Tel Aviv, Israel, monday.com serves customers across a range of industries and geographies.