Monday.com Reports 22% Revenue Growth and Provides Conservative Q3 Forecast

Monday.com reported stronger-than-expected financial results for the second quarter of 2026, with revenues reaching $364.6 million, a 22% increase compared to the same quarter last year and surpassing the forecast of $355 million. The company reaffirmed its full-year revenue guidance of $1.46 to $1.47 billion, reflecting an anticipated growth rate of about 20%. For the third quarter, Monday.com issued a conservative revenue forecast of $368 to $370 million.

Despite exceeding market expectations, Monday.com's stock dropped over 8% in pre-market trading on Nasdaq. The company highlighted significant growth in its AI product revenue, which doubled from the previous quarter and now accounts for 17% of annual new deal revenues. Operating profitability improved as well, with adjusted operating income rising from $45 million to $61 million and an operating margin of 17% of revenues. Including one-time items, the company recorded an operating loss of $1.5 million, an improvement from a $11.5 million loss a year earlier.

Co-founders and co-CEOs Roy Man and Eran Zinman emphasized that the second-quarter results validate their strategy and justify accelerating their efforts. They announced a difficult organizational restructuring and a sharpened focus on their AI-based work platform to capitalize on what they see as the largest opportunity in software. They noted that early customer responses to the new direction have exceeded expectations and that the company is evolving into a faster, leaner organization with clearer priorities, signaling that they are just at the beginning of their journey.