monday.com’s first quarter results were well received, as the company delivered higher-than-expected revenue and profitability. Management credited sustained demand from enterprises consolidating their work management tools and highlighted strong adoption of its newly launched AI capabilities. Co-CEO Roy Mann pointed to “a record number of new customers with over $500,000 in annual recurring revenue” and noted that AI-driven products contributed meaningfully to customer engagement and operational efficiency.
Is now the time to buy MNDY? Find out in our full research report (it’s free for active Edge members).
monday.com (MNDY) Q1 CY2026 Highlights:
- Revenue: $351.3 million vs analyst estimates of $339.1 million (24.5% year-on-year growth, 3.6% beat)
- Adjusted EPS: $1.15 vs analyst estimates of $0.93 (23.4% beat)
- Adjusted Operating Income: $49.04 million vs analyst estimates of $38.06 million (14% margin, 28.9% beat)
- The company slightly lifted its revenue guidance for the full year to $1.47 billion at the midpoint from $1.46 billion
- Operating Margin: 5.6%, up from 3.5% in the same quarter last year
- Customers: 4,547 customers paying more than $50,000 annually
- Net Revenue Retention Rate: 114%, in line with the previous quarter
- Annual Recurring Revenue: $1.41 billion (24.5% year-on-year growth, beat)
- Billings: $396.9 million at quarter end, up 21.6% year on year
- Market Capitalization: $3.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From monday.com’s Q1 Earnings Call
- Damon Kogan (Barclays) asked about the updated net revenue retention outlook; CFO Eliran Glazer explained that retention remains strong but will be impacted by lapping prior price increases.
- Josh Baer (Morgan Stanley) inquired about the mechanics and expected impact of the new consumption-based pricing model; Co-CEO Eran Zinman and CRO Casey George said adoption is gradual, with no material effect assumed this year.
- Mark Murphy (JPMorgan) asked how customers are using AI tools compared to third-party alternatives; Co-CEO Roy Mann highlighted the integration of AI agents with monday.com’s platform and the company’s focus on collaborative workflows.
- David Hynes (Canaccord) questioned whether usage-based pricing better matches AI-driven revenue with costs; Glazer said increased AI computing costs will impact margins, but the new model should help align revenue and expenses over time.
- Taylor McGinnis (UBS) asked what drove the quarter’s outperformance and if any areas exceeded expectations; Glazer cited AI’s contribution to ARR and ongoing enterprise growth as key positives.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be watching (1) the rate of customer adoption and monetization of AI agents and the new consumption-based pricing, (2) the integration and customer uptake of voice capabilities from the One AI acquisition, and (3) continued growth in enterprise and multi-product adoption. The impact of increased computing costs on margins and the pace of existing customer transitions to new pricing will also be important areas to monitor.
monday.com currently trades at $71.71, in line with $72.07 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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