Monday.com Falls 7% After Light Q4 Revenue Guidance Overshadows Strong Q3 Beat

Monday.com reported third-quarter fiscal 2026 results that beat expectations across the board, but shares fell sharply after the company issued fourth-quarter revenue guidance that came in below Wall Street estimates, signaling that its pivot to an AI-first business model is creating near-term growth headwinds.

Q3 revenue rose 19% year over year to $377.5 million, topping the consensus estimate of $369 million. Adjusted EPS of $2.14 surged 84% year over year and crushed the estimate of $1.37, while non-GAAP operating income jumped 88% year over year to $89.4 million against an estimate of $57.8 million. Enterprise momentum was strong, with the count of customers generating more than $100,000 in annual recurring revenue climbing 33% year over year to 2,127. AI ARR reached $36 million, supported by over 6 million agent interactions, and remaining performance obligations grew 27% year over year to $946 million.

The concern for investors centered on Q4 guidance. Monday.com projected Q4 revenue of $380 million to $382 million, below the $386 million analysts had expected, even as Q4 non-GAAP operating income guidance of $68 million to $70 million edged past the $64.8 million estimate. Full-year fiscal 2026 revenue guidance was raised to $1.473 billion to $1.475 billion, roughly in line with consensus, with full-year non-GAAP operating income guided to $268 million to $270 million, well above the $232 million estimate. Adjusted free cash flow contracted 32% year over year to $63 million in the quarter, and the company has repurchased $735 million in shares through the first nine months of the fiscal year.

Co-CEOs Roy Mann and Eran Zinman said the business is undergoing a fundamental evolution toward becoming an AI-first company, and acknowledged that the initiative introduces near-term operational headwinds. Shares declined as much as 13.6% in premarket trading and settled around 7% lower as the market opened, as investors weighed the structural shift against the softer near-term revenue outlook.