Monday.com Shares Drop 6% as Below-Consensus Q3 Revenue Guidance Overshadows Strong Q2 Beat

Monday.com reported second-quarter fiscal 2026 results before the bell on August 10 that topped Wall Street on every major metric, yet shares fell roughly 6% as investors focused on a disappointing near-term outlook. Revenue came in at $364.6 million, beating the $355 million consensus by about 3% and rising 22% year over year. Adjusted EPS of $1.48 cleared the $1.11 estimate by nearly 34%, and non-GAAP operating income of $61.1 million surpassed the $47.2 million forecast by 35%.

AI products accounted for 17% of net new annual recurring revenue, underscoring the company's push into artificial intelligence. The sell-off was driven by third-quarter revenue guidance of $368 million to $370 million, implying 16% to 17% year-over-year growth, whose midpoint landed below analyst expectations. Full-year 2026 revenue guidance was set at approximately $1.47 billion.

The company also outlined a broad organizational restructuring aimed at accelerating its shift toward AI-enabled products and larger enterprise customers. DA Davidson reiterated its Buy rating and $100 price target following the report, while Capital One issued negative commentary. The stock had surged 20.4% in July ahead of the print, partly on restructuring optimism, leaving little room for a guidance miss.