Monday.Com LtdMNDY

Why is Monday.Com (MNDY) moving?

Q3 20263 Jul – 6 Oct 2026

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AI monetization accelerates but restructuring and soft guidance weigh

AI monetization gains traction AI now drives 17% of new subscription revenue, up from prior periods, showing the company's AI features are selling well and could open a new growth path.
This is a key new positive development that could drive future growth and investor optimism.
Strong Q2 financials and attractive valuation Q2 revenue grew 22% to $364.6M with 17% operating margin and $52.3M free cash flow. Analysts rate it Strong Buy, and the stock trades at ~15x forward earnings vs. ~20x for peers.
These results and valuation metrics provide fundamental support and could attract value-focused investors.
Restructuring and soft guidance A 20% workforce cut with $45–55M restructuring charges and Q3 revenue guidance below consensus, plus a billings miss, raise concerns about near-term execution and demand.
These factors directly weigh on profitability and investor confidence, contributing to the stock's decline.
AI disruption fears and relief rally The stock fell over 40% in 2026 on fears AI could disrupt its business model, but a sector-wide AI relief rally and earnings strength have recently drawn buyers, creating volatility.
This captures the ongoing tension between disruption fears and recent positive momentum, explaining the stock's mixed performance.

August 202612 Jul – 6 Oct 2026

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AI fears still weigh, but earnings strength and cheap valuation draw buyers

AI disruption fear keeps the stock down The stock is down over 40% in 2026 even though revenue grew 24% and guidance was raised. Investors fear AI could hurt monday.com's business model, and that fear — not weak results — is the main force pushing the price down.
This is the core reason the stock is depressed and frames the whole period.
Sector-wide AI relief rally lifts software stocks In late August, enterprise software stocks jumped after earnings showed AI is boosting growth rather than killing old platforms. monday.com rose 6.6% with peers like Salesforce and MongoDB, easing the disruption fear that had been pressuring the shares.
Shows the market's AI fear can reverse, directly lifting MNDY's price.
Q2 beat on revenue, but weak guidance and billings miss monday.com beat second-quarter revenue expectations ($364.6 million, up 21.9%) and added large enterprise customers, but gave the weakest guidance update among peers and missed billings estimates. The beat supports the stock; the soft outlook and billings cap gains.
The latest hard results are the key fundamental driver, cutting both ways.
Rising profit estimates and cheap valuation attract buyers Analysts keep raising monday.com's earnings estimates ahead of its report, with the stock rated Strong Buy and trading at a forward P/E of about 15 versus an industry average near 20. That discount, plus expected profit growth over 20%, draws investors.
Valuation and estimate revisions are the main supports keeping the stock from falling further.

Latest12 Jul – 6 Oct 2026

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AI fears still weigh, but earnings strength and cheap valuation draw buyers

AI disruption fear keeps the stock down The stock is down over 40% in 2026 even though revenue grew 24% and guidance was raised. Investors fear AI could hurt monday.com's business model, and that fear — not weak results — is the main force pushing the price down.
This is the core reason the stock is depressed and frames the whole period.
Sector-wide AI relief rally lifts software stocks In late August, enterprise software stocks jumped after earnings showed AI is boosting growth rather than killing old platforms. monday.com rose 6.6% with peers like Salesforce and MongoDB, easing the disruption fear that had been pressuring the shares.
Shows the market's AI fear can reverse, directly lifting MNDY's price.
Q2 beat on revenue, but weak guidance and billings miss monday.com beat second-quarter revenue expectations ($364.6 million, up 21.9%) and added large enterprise customers, but gave the weakest guidance update among peers and missed billings estimates. The beat supports the stock; the soft outlook and billings cap gains.
The latest hard results are the key fundamental driver, cutting both ways.
Rising profit estimates and cheap valuation attract buyers Analysts keep raising monday.com's earnings estimates ahead of its report, with the stock rated Strong Buy and trading at a forward P/E of about 15 versus an industry average near 20. That discount, plus expected profit growth over 20%, draws investors.
Valuation and estimate revisions are the main supports keeping the stock from falling further.

July 20263 Jul – 10 Aug 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.
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.
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.

3 Jul – 10 Aug 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.
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.
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.