Monday.com Exceeds Q3 Forecasts Amid Strategic Shift and AI Push
Translated & summarized from Calcalist by baba
Software firm Monday.com exceeded its third-quarter revenue projections, reporting $377.5 million in sales, a 19% year-over-year increase. The company is navigating a strategic shift, including layoffs and a focus on AI, which generated $36 million in annualized revenue in Q3. Monday.com forecasts slower growth for Q4 2026, with revenues between $380-$382 million.
The story in 5 lines · by baba
- Monday.com reported Q3 revenues of $377.5 million, surpassing forecasts.
- The company's growth rate is slowing, with Q4 2026 revenue projected at $380-$382 million.
- Monday.com is undergoing a strategic transformation, including 600 layoffs.
- Annualized revenue from AI products reached $36 million in the third quarter.
- Full-year 2026 revenue is projected to be $1.47 billion, a 20% increase from 2025.
Software company Monday.com reported third-quarter revenues of $377.5 million, a 19% increase year-over-year, surpassing its own conservative forecast of approximately $370 million. The company's growth rate is moderating, but it exceeded expectations in the latest quarter. Operating profit reached $31.2 million, or 8% of revenue, while adjusted operating profit nearly doubled to $89 million compared to the same period last year.
Looking ahead to the fourth quarter of 2026, Monday.com anticipates revenues between $380 million and $382 million, indicating a further slowdown in growth to 14%. The company projects operating profit to decrease to between $68 million and $70 million.
For the full year 2026, Monday.com forecasts revenues of $1.47 billion, representing a 20% growth rate compared to 2025. The company is undergoing a significant strategic transformation, which has included the layoff of 600 employees and the departure of numerous senior executives.
As it develops an operating system for organizations, Monday.com is focusing on reinventing itself with AI solutions. The company reported that its annualized revenue from AI products reached $36 million in the third quarter.
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