Key Highlights
- Q1 revenue reached $351.3 million, representing 24.5% year-over-year growth and surpassing analyst forecasts by 3.6%
- Adjusted earnings per share of $1.15 exceeded the consensus target of $0.93 by 23.4%
- Adjusted operating profit topped projections by 28.9%, with margins expanding to 14%
- Annual revenue outlook increased modestly to $1.47 billion at midpoint
- Shares of MNDY surged 20.9% to $87.28 following the earnings announcement
monday.com (MNDY) posted impressive first-quarter fiscal 2026 results, propelling shares upward by 20.9% to $87.28 during after-hours trading.
The company’s quarterly revenue totaled $351.3 million, reflecting 24.5% growth compared to the same period last year and outpacing Wall Street’s projection of $339.1 million. This represents a solid 3.6% revenue beat.
On the profitability front, adjusted earnings per share registered at $1.15, significantly exceeding the analyst consensus of $0.93 — delivering a 23.4% upside surprise. The comparable figure from last year’s quarter stood at $1.10 per share on an adjusted basis.
This performance represents monday.com’s fourth straight quarter of surpassing both top-line and bottom-line Wall Street expectations.
Adjusted operating profit totaled $49.04 million, comfortably beating the $38.06 million estimate — a 28.9% outperformance. The adjusted operating margin reached 14%, while the overall operating margin improved to 5.6% from 3.5% during the corresponding quarter a year earlier.
Free cash flow margin expanded dramatically to 29.3%, up considerably from 17% in the previous quarter. This metric signals strong cash generation capability.
CFO Eliran Glazer characterized the results as “a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations.”
Customer Base Remains Resilient
monday.com concluded the first quarter with 4,547 customers generating over $50,000 in annual recurring revenue. The net revenue retention rate stood at 114%, unchanged from the previous quarter.
This retention metric indicates that monday.com would have achieved 14.5% revenue expansion purely from existing customers over the trailing 12 months, without any new customer acquisition — demonstrating strong product engagement and expansion within the customer base.
Total billings amounted to $396.9 million, showing 21.6% year-over-year improvement, though this growth rate trailed the overall revenue expansion — a dynamic worth monitoring as it may suggest evolving payment terms or collection timing.
Management Raises Full-Year Outlook
For the second quarter, executives projected revenue of approximately $355 million, closely aligned with the analyst consensus of $352.5 million. The full-year revenue forecast received a modest increase to $1.47 billion at the midpoint, up from the previous guidance of $1.46 billion.
Wall Street analysts currently anticipate 16.6% revenue growth over the coming 12 months — representing a deceleration from the historical two-year trend of 28.8%, though still exceeding the broader sector average.
The prevailing analyst consensus for Q2 calls for adjusted EPS of $0.97 on revenue of $352.5 million. Full fiscal year estimates project earnings of $4.15 per share on revenue of $1.46 billion.
Notwithstanding the sharp rally following earnings, MNDY shares remain down approximately 51.2% year-to-date, contrasting with an 8.1% advance in the S&P 500.
Zacks currently assigns a Rank #3 (Hold) rating to the stock, indicating expected performance in line with the broader market in the near term.
