monday.com Ltd. develops software applications across the United States, Europe, the Middle East, Africa, the United Kingdom, and internationally. Its main offering is Work OS, a cloud-based visual work operating system built from modular building blocks that users assemble to create software applications and work management tools. Products include monday work management, monday CRM, monday dev, monday service, WorkCanvas, and WorkForms, serving organizations, educational and government institutions, and distinct business units. The company was formerly known as DaPulse Labs Ltd. and changed its name to monday.com Ltd. in December 2017. It was incorporated in 2012 and is headquartered in Tel Aviv-Yafo, Israel.
AI monetization grows, but layoffs and soft Q3 guidance cloud outlook
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AI monetization gains traction AI now drives 17% of net new annual recurring revenue, up from 10% last quarter, as customers adopt new AI-powered pricing. This shows AI is becoming a real revenue source, which could lift MNDY's stock if the trend continues.
This is new evidence of AI monetization progress, a key growth driver for the stock.
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20% workforce cut and $45-55M restructuring charge MNDY is cutting 20% of jobs (over 600 roles) to become AI-first, incurring $45-55M in charges. While it may save $100M annually, the move signals disruption and could hurt morale and execution, pressuring the stock.
This is a major new event that affects costs, execution, and investor sentiment.
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Q3 revenue guidance misses estimates Q3 revenue outlook of $368-370M fell short of the $372.85M consensus, despite a Q2 beat. The soft guide suggests slowing growth and near-term pressure, which drove shares down 9% premarket.
This is the latest quarterly guidance and directly explains the recent stock drop.
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Q2 revenue up 22% with margin expansion Q2 revenue rose 22% to $364.6M, beating estimates, with operating margin at 17% and free cash flow of $52.3M. Strong execution shows the core business remains healthy, supporting the stock despite guidance concerns.
This is the latest quarterly result, providing a balanced view of financial health.
Q3 2026
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AI monetization grows, but layoffs and soft Q3 guidance cloud outlook
▲
AI monetization gains traction AI now drives 17% of net new annual recurring revenue, up from 10% last quarter, as customers adopt new AI-powered pricing. This shows AI is becoming a real revenue source, which could lift MNDY's stock if the trend continues.
This is new evidence of AI monetization progress, a key growth driver for the stock.
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20% workforce cut and $45-55M restructuring charge MNDY is cutting 20% of jobs (over 600 roles) to become AI-first, incurring $45-55M in charges. While it may save $100M annually, the move signals disruption and could hurt morale and execution, pressuring the stock.
This is a major new event that affects costs, execution, and investor sentiment.
▼
Q3 revenue guidance misses estimates Q3 revenue outlook of $368-370M fell short of the $372.85M consensus, despite a Q2 beat. The soft guide suggests slowing growth and near-term pressure, which drove shares down 9% premarket.
This is the latest quarterly guidance and directly explains the recent stock drop.
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Q2 revenue up 22% with margin expansion Q2 revenue rose 22% to $364.6M, beating estimates, with operating margin at 17% and free cash flow of $52.3M. Strong execution shows the core business remains healthy, supporting the stock despite guidance concerns.
This is the latest quarterly result, providing a balanced view of financial health.
News & notes movingMNDY
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MNDY▲
Monday.com Rises 2.48% as Market Slips, Earnings Preview in Focus
Monday.com closed at $87.06, up 2.48% from the previous session, outperforming a 0.76% loss on the S&P 500, a 0.68% drop on the Dow and a 1.13% decline on the Nasdaq. Ahead of its upcoming earnings disclosure, the company's earnings per share are projected at $1.39, a 19.83% increase from the same quarter last year, while consensus revenue is expected at $368.65 million, up 16.35% year over year. For the full annual period, the Zacks Consensus Estimates anticipate earnings of $5.5 per share and revenue of $1.47 billion, shifts of +25% and +19.32% respectively from last year. Monday.com currently carries a Zacks Rank of #1 (Strong Buy), with its consensus EPS projection unchanged over the past 30 days, and trades at a Forward P/E of 15.44, a discount to the industry average of 20.16, with a PEG ratio of 0.81 versus the Internet - Software industry average of 1.14.
MNDY · Capital · Positive Earnings preview highlights projected EPS of $1.39 (+19.83% YoY) and revenue of $368.65M (+16.35%), with a Zacks #1 Strong Buy rank and forward P/E discount to industry.
monday.com Q2 Revenue Up 21.9% to $364.6 Million, Beats Estimates
monday.com reported second-quarter revenue of $364.6 million, up 21.9% year on year and 2.6% above analysts' expectations, as the 16 productivity software stocks tracked by the report collectively beat consensus revenue estimates by 3.1%. The company added 287 enterprise customers paying more than $50,000 annually, bringing that total to 4,834, but delivered the weakest guidance update and weakest full-year guidance update among its peers, and missed analysts' billings estimates significantly. SoundHound AI posted the group's best quarter, with revenue of $61.9 million, up 45% year on year and 18.1% above expectations, the biggest estimate beat and fastest revenue growth of the group. Pegasystems had the weakest quarter, with revenue of $420.7 million, up 9.4% year on year but 1.5% short of expectations, while Appian reported revenue of $203.3 million, up 19.1% and 5.1% above estimates, and delivered the highest guidance raise among its peers. Asana reported revenue of $216.4 million, up 9.9% year on year and 1% above expectations, and added 675 enterprise customers paying more than $5,000 annually to reach a total of 26,778. Productivity software stocks are up 17.4% on average since the latest earnings results.
Cloud & Digital Infrastructure › Horizontal SaaS ▲Demand
MNDY · Capital · Neutral monday.com beat on Q2 revenue ($364.6M, +21.9%) but delivered the weakest guidance update and missed billings estimates significantly.
APPN · Capital · Positive Appian reported revenue of $203.3M, up 19.1% and 5.1% above estimates, and delivered the highest guidance raise among its peers.
ASAN · Capital · Positive Asana reported revenue of $216.4M, up 9.9% and 1% above expectations, and added 675 enterprise customers.
PEGA · Capital · Negative Pegasystems had the weakest quarter, with revenue of $420.7M up 9.4% but 1.5% short of expectations.
SOUN · Capital · Positive SoundHound AI posted the group's best quarter, with revenue of $61.9M up 45% and 18.1% above expectations.
Monday.com Stock Attracts Attention with Strong Earnings Outlook
Monday.com, the project management software developer, has recently been among the most searched stocks on Zacks.com, with its shares down 2.2% over the past month compared to the S&P 500's 0.1% decline. The company, rated Zacks Rank #1 (Strong Buy), has seen significant upward revisions in earnings estimates, with the current quarter's consensus estimate rising 67.5% over the last 30 days to $1.42 per share, and the current fiscal year estimate up 41.8% to $5.55. Revenue projections also look strong, with the current quarter expected to grow 16.3% year-over-year to $368.58 million, following a last reported quarter that beat estimates on both revenue and earnings. However, Monday.com's valuation is graded D, indicating it trades at a premium to its peers.
Asana Q2 Earnings Preview: Revenue Growth Expected to Slow
Asana will announce its second-quarter earnings after market hours on Thursday, with investors expecting revenue growth of 8.8% year on year, a slowdown from the 9.9% increase recorded in the same quarter last year. The company beat analysts' revenue expectations last quarter, reporting $205.1 million in revenue, up 9.5% year on year, and added 175 enterprise customers paying more than $5,000 annually, bringing the total to 26,103. Analysts have generally reconfirmed their estimates over the past 30 days, and Asana has a history of exceeding Wall Street's expectations. In the productivity software segment, peers Atlassian and monday.com have already reported strong results, with Atlassian's revenue up 27.6% and monday.com's up 21.9%, and shares in the segment have risen 11.1% on average over the last month, while Asana is up 16.8%.
Enterprise Software Stocks Surge on AI-Driven Earnings
Enterprise software and SaaS stocks surged in afternoon trading after quarterly earnings and upbeat commentary signaled that artificial intelligence is driving growth across the sector rather than threatening legacy business models. The rally, highlighted by a 20% jump in Salesforce, eased fears that AI would disrupt traditional platforms, with reports showing AI-powered offerings like Salesforce's Agentforce reaching $1.5 billion in annual recurring revenue and Slackbot surpassing 1 million active users within five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta's AI identity offerings drove about 30% of new bookings and increased contract values by roughly 40%. Among the gainers, Paylocity rose 4%, MongoDB jumped 9.7%, Datadog climbed 6.4%, Five9 advanced 6.4%, and monday.com gained 6.6%. MongoDB, trading near its 52-week high of $472.29, is up 12% year-to-date, though it recently dropped 4.6% on concerns over AI competition following reports that Anthropic's upcoming IPO could rival SpaceX's $75 billion debut.
monday.com reported second quarter fiscal 2026 revenue of $365 million, up 22% year-over-year, with non-GAAP operating margin expanding to 17%. AI ARR doubled from Q1 to Q2 and now represents 17% of net new ARR added in the quarter. The company also announced a 20% workforce reduction on July 22, with most savings to be reinvested in AI and product development. Full year revenue guidance was set at $1.466 billion to $1.474 billion, representing 19% to 20% growth, while non-GAAP operating income is expected to be $230 million to $234 million. monday.com crossed $1.5 billion in ARR in July and repurchased $182 million of shares during the quarter, exhausting its $870 million authorization.
Monday.com Stock Surges 20.4% in July After Restructuring Announcement
Monday.com shares rose 20.4% in July 2026, driven by a late-month restructuring announcement. The stock initially gained 20% through July 13 amid a market rotation into enterprise software, then fell 25% after IBM's weak preliminary earnings raised sector concerns. A rebound began as strong software results from Magnificent 7 companies eased fears, and Monday.com accelerated its recovery by disclosing a 20% workforce reduction in an SEC filing on July 22, which investors viewed as margin-widening. The company later reported second-quarter results on August 10 that beat estimates, though the stock opened 11% lower that day.
Monday.com shares drop 9% after Q3 revenue outlook misses estimates
Shares of monday.com fell about 9% premarket on Monday after the company issued a third-quarter revenue outlook below analyst estimates. The software provider reported second-quarter revenue of $364.6 million, up about 22% year-over-year, and non-GAAP earnings per share of $1.48, both beating consensus. For the third quarter, monday.com guided revenue between $368 million and $370 million, with a midpoint of $369 million, compared to a consensus estimate of $372.85 million. The company maintained its full-year 2026 revenue forecast of $1.466 billion to $1.474 billion, in line with the $1.47 billion consensus. The net dollar retention rate was 109%, and total remaining performance obligations rose 34% to $937 million.
U.S. companies signal hiring rebound despite ongoing AI-driven layoffs
Several U.S. companies are looking to expand their workforce after months of holding back, signaling a potential shift in hiring trends even as artificial intelligence continues to drive job cuts. U.S. tech firms have cut nearly 140,000 jobs this year, with Amazon, Oracle, Meta, and Microsoft accounting for about 50,000 of those cuts, according to a Financial Times analysis. However, Robert Half CEO Keith Waddell noted that AI's impacts on the job market are proving more benign than feared, while Booz Allen Hamilton is accelerating hiring after last year's layoffs, CSX expects modest headcount increases, Alphabet plans to keep hiring in AI and Cloud, Ford rehired hundreds of experienced engineers, and IBM will triple its U.S. entry-level hiring this year. Gartner predicted that up to 30% of roles displaced by AI will be rehired by 2029, often at a higher cost. Still, companies including Amazon, Uber, and monday.com continue to announce AI-driven layoffs.
BAH · Demand · Positive Booz Allen Hamilton is accelerating hiring after last year's layoffs, signaling increased demand for its services.
F · Demand · Positive Ford rehired hundreds of experienced engineers, signaling increased demand for automotive engineering talent and production.
RHI · Demand · Positive CEO notes AI impacts on job market are more benign than feared, signaling potential uptick in hiring demand for staffing firms.
CSX · Demand · Positive CSX expects modest headcount increases, indicating improved business conditions and demand for rail services.
GOOG · Demand · Positive Alphabet plans to keep hiring in AI and Cloud, indicating strong demand in these segments.
IBM · Demand · Positive IBM will triple its U.S. entry-level hiring this year, indicating increased demand for its services.
Monday.com cuts 20% of workforce, joining tech layoffs tied to AI
Monday.com is laying off about 20% of its workforce, or just over 600 employees, as part of a restructuring plan tied to its AI-driven growth strategy. The Tel Aviv-based work management software company disclosed the cuts in an SEC filing, with co-founder Eran Zinman telling employees the move was not made to reduce costs or replace people with AI but to adapt the organization to an AI-first vision. Monday.com expects $45 million to $55 million in net restructuring charges and still projects up to 20% year-over-year revenue growth for 2026. The layoffs add to a wave of tech job cuts this year, with U.S. tech companies slashing nearly 140,000 jobs since the start of 2026, according to Financial Times analysis, as firms including Amazon, Oracle, Meta, and Microsoft funnel hundreds of billions of dollars into AI data center buildouts. The FT also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, though AI-focused companies like Anthropic and OpenAI are hiring rapidly and some firms are shifting headcount into AI roles.
IBM earnings warning drags down Atlassian, monday.com, and Agilysys stocks
Shares of Atlassian, monday.com, and Agilysys fell sharply after IBM issued a second-quarter earnings warning that signaled enterprise customers may be cutting software budgets to fund hardware purchases. IBM pre-announced adjusted earnings of $2.93 per share on $17.2 billion in revenue, missing Wall Street estimates of $3.01 and $17.86 billion, respectively, with CEO Arvind Krishna citing a sudden reprioritization of enterprise budgets in late June toward servers, storage, and memory chips. Atlassian dropped 6.7%, monday.com fell 5.4%, and Agilysys declined 4.3% as part of a broader sell-off in legacy workflow and application software names, while cybersecurity platforms rallied. The divergence highlights market concern that massive capital outlays for artificial intelligence hardware are cannibalizing traditional IT budgets, pressuring software-as-a-service valuations. Atlassian is now down 42.1% year-to-date and trading 55.8% below its 52-week high of $203 from July 2025.
Monday.com Stock Down Over 40% in 2026 Despite Solid Revenue Growth
Monday.com stock has fallen more than 40% in 2026, driven by fears that artificial intelligence could disrupt its business model. The company reported first-quarter revenue of $351.3 million, up 24% year-over-year, and raised its full-year revenue guidance to between $1.466 billion and $1.474 billion. Despite the sell-off, the stock trades at a price-to-sales ratio below 3 times and a forward price-to-earnings ratio below 19 times, with revenue still projected to grow nearly 20%. The author views the stock as a buying opportunity at these depressed levels.
monday.com jumps 9.2% after Q1 beat, AI traction, and $553 million buyback
monday.com shares surged 9.2% after the company reported first-quarter 2026 revenue of US$351.3 million, up 24% year-over-year, with a record 14% operating margin and a 29% free cash flow margin. The company deployed US$553 million to repurchase about 10% of its shares and raised its full-year 2026 revenue and margin guidance. A key driver was monetization of its rebuilt AI work platform, where the new seats-plus-credits model contributed 10% of net new annual recurring revenue, signaling AI is becoming a meaningful growth driver. The results ease near-term growth fears but do not eliminate risks from slower customer additions and pricing pressure in competitive segments.
Monday.com Reports 10% of Net New ARR from AI Pricing, Announces $553M Buyback
Monday.com reported that 10% of its net new annual recurring revenue in the first quarter of 2026 came from new AI-powered pricing models, providing quantifiable evidence of AI monetization. The company also executed a $553 million share repurchase in the quarter, buying back roughly 10% of outstanding shares near recent valuation lows. The stock was trading at $79.77, down 44.4% year to date and 74.1% over the past year. Management stated the buyback signals confidence in the business trajectory despite intense competition from peers such as Atlassian, ServiceNow and Salesforce.
Monday.com carries an average brokerage recommendation of 1.64, approximating between Strong Buy and Buy, based on 25 analyst ratings where 16 are Strong Buy and two are Buy. However, Zacks Investment Research assigns the stock a Zacks Rank #3 (Hold), citing an unchanged current-year consensus earnings estimate of $4.49 over the past month. Zacks notes that brokerage recommendations often exhibit a strong positive bias and may not be timely, while its own rank is driven by earnings estimate revisions and has a proven track record. Investors are advised to be cautious about relying solely on the bullish ABR.
MNDY · Capital · Neutral Article discusses analyst ratings and Zacks Rank, which are financial/valuation events, but the mixed signals (strong buy consensus vs. hold from Zacks) make the net impact unclear.
StockStory Lists monday.com as Buy, Array and Flowserve as Sells
StockStory has added monday.com to its buy list while recommending investors sell Array Technologies and Flowserve. The firm sees monday.com as likely to exceed Wall Street expectations, citing 25.5% annual recurring revenue growth, a 89.1% gross margin, and efficient customer acquisition. Array Technologies faces revenue declines, poor returns on capital, and a high debt load, while Flowserve struggles with mediocre backlog growth, soft demand forecasts, and low free cash flow margins. Wall Street consensus price targets imply significant upside for all three stocks, but StockStory argues the sell-rated names are disconnected from reality.
monday.com CRO George James Case sells 838 shares in mandatory tax-related transaction
monday.com Chief Revenue Officer George James Case sold 838 ordinary shares for approximately $66,000 on June 15, 2026, according to an SEC filing. The sale was part of a transaction where Case exercised 1,858 options and immediately sold 838 shares to cover tax obligations, resulting in a 45.1% reduction in his direct holdings to 1,020 shares. The company, which offers the cloud-based monday.com Work OS platform, reported trailing twelve-month revenue of $1.30 billion and net income of $119.35 million, though its stock has declined 76.8% over the past year. The filing indicates the sale was mandatory and does not reflect a change in Case's conviction in the company.
MNDY · Capital · Negative CRO sold shares in mandatory tax-related transaction, reducing holdings by 45.1%, though filing indicates no change in conviction
StockStory highlights monday.com and Shift4 as growth stocks to buy, flags Affirm as a sell
StockStory identifies monday.com and Shift4 Payments as growth stocks with explosive upside, while warning that Affirm faces challenges. monday.com achieved 25.4% one-year revenue growth, with annual recurring revenue growth averaging 25.5% and a gross margin of 89.1%. Shift4 posted 28.3% one-year revenue growth, with two-year annual revenue growth of 27.8% and earnings per share growth of 34.1% over the past two years. Affirm grew revenue 32.1% but shows negative returns on capital and a 6× net-debt-to-EBITDA ratio, raising concerns about overleverage and potential shareholder dilution. monday.com trades at $67.48 per share, Shift4 at $44.13, and Affirm at $76.33.
AFRM · Capital · Negative StockStory flags Affirm as a sell due to negative returns on capital and high leverage (6× net-debt-to-EBITDA), raising concerns about overleverage and potential shareholder dilution.
FOUR · Capital · Positive StockStory highlights Shift4 Payments as a growth stock with 28.3% one-year revenue growth and 34.1% EPS growth over two years, suggesting explosive upside.
MNDY · Capital · Positive StockStory highlights monday.com as a growth stock with 25.4% one-year revenue growth, 25.5% ARR growth, and 89.1% gross margin, suggesting explosive upside.
Productivity software stocks reported a satisfactory first quarter, with aggregate revenues beating analyst consensus estimates by 1.7% while next-quarter revenue guidance was in line. monday.com posted revenue of $351.3 million, up 24.5% year on year and exceeding expectations by 3.6%, though its stock fell 3.7% since the report. SoundHound AI delivered the fastest revenue growth among the 16 tracked peers, with revenue of $44.2 million rising 51.7% year on year and beating estimates by 3.4%, yet its shares dropped 33.1%. Pegasystems was the weakest performer, with revenue declining 9.6% year on year to $430 million, missing estimates by 7.3%, and its stock tumbled 23.4%. RingCentral met expectations with revenue of $644.2 million, up 5.3%, but its stock declined 21%, while UiPath topped estimates by 5.2% with revenue of $418.4 million, up 17.3%, yet its shares fell 10.9%. On average, the group's share prices are down 8.9% since their latest earnings results.
monday.com Stock Drops 52.4% in Six Months, Now Trades at $69.40
monday.com shares have fallen 52.4% over the past six months and now trade at $69.40. The company's annual recurring revenue reached $1.41 billion in the first quarter, with year-on-year growth averaging 25.5% over the last four quarters. Its gross margin averaged an elite 89.1% over the past year, leaving roughly $89.05 for every $100 in revenue to fund selling, marketing, and research and development. The customer acquisition cost payback period stood at 30.8 months, indicating efficient new customer acquisition. The stock currently trades at 2.2 times forward price-to-sales.
MNDY · Capital · Negative Stock price has fallen 52.4% over six months, now trading at $69.40, reflecting poor market sentiment and valuation concerns.
RVNA Technologies Acquires UXB to Expand Enterprise CX Capabilities
RVNA Technologies has acquired UXB Holdings, a San Francisco-based technology services firm specializing in customer experience and work management platforms. UXB, founded in 2015 by former Salesforce.com executive Bruno Saab, has served more than 800 clients and holds Platinum partner status with Freshworks and a fast-growing Gold partnership with monday.com. RVNA, which focuses on back-office and financial operations systems for the CFO office, plans to invest in expanding UXB's capabilities and market reach. The combined organization aims to deliver a more comprehensive enterprise platform offering by integrating front-office CX expertise with back-office depth. Financial terms of the transaction were not disclosed.
Monday.com Holds Zacks Rank #3 as Estimates Stay Flat
Monday.com has drawn heavy investor attention and currently carries a Zacks Rank #3, or Hold, signaling near-term performance in line with the broader market. The consensus earnings estimate for the current quarter stands at $1.14 per share, up 4.6% from a year ago, while full-year estimates of $4.49 and $5.45 for the current and next fiscal years reflect growth of 2.1% and 21.4%, respectively, with all estimates unchanged over the past 30 days. Revenue forecasts point to $354.95 million for the current quarter, an 18.7% increase, and $1.47 billion and $1.7 billion for the current and next fiscal years, representing gains of 19.3% and 15.8%. The company beat consensus EPS and revenue estimates in each of the trailing four quarters, most recently delivering a 19.79% EPS surprise on revenue of $351.27 million. Monday.com receives a Zacks Value Style Score of C, indicating it is trading at par with its peers.
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