Monday.com (MNDY) shares are up more than 25% in pre‑market trading on Monday, after the company delivered a strong Q1 earnings report that easily topped Wall Street expectations. Investors are cheering the results as a clear sign that the cloud-based work management platform provider’s enterprise push and AI product strategy are paying off.
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The company reported $351.3 million in revenue, up 24% year over year, reflecting continued adoption of its newly launched AI Work Platform and steady expansion among large enterprise customers. The topline also surpassed the analysts’ expectations of $339.07 million.
In addition, Monday.com delivered adjusted earnings per share of $1.15, which increased 4.5% from the prior-year quarter and beat the consensus estimate of $1.10 per share.
Enterprise Momentum Continues to Accelerate
Monday.com’s enterprise momentum continued to build, with customer metrics showing strength across the platform, especially among larger accounts. Net dollar retention was solid at 110% overall, rising to 114% for customers with more than 10 users, 116% for those generating over $50K in ARR, and 115% for customers above $100K.
Further, customers spending more than $50K in ARR increased 32% year-over-year to 4,547, while those above $100K ARR reached 1,844, up 39%. The number of customers spending over $500K ARR jumped to 99, a 74% increase. The jump is consistent with the prior quarters, as shown in the chart below.
Remaining performance obligations also climbed sharply. Total RPO rose 33% to $880 million, while current RPO increased 26% to $716 million.
Q2 and Full Year 2026 Outlook
Monday.com expects solid growth ahead in Q2 2026, even as foreign exchange headwinds continue. The company guided for revenue between $354 million and $356 million, up 18% to 19% year‑over‑year. The analysts were expecting $354.22 million. Adjusted operating income is expected to come in between $46 million and $48 million, with an operating margin of 13% to 14%.
For 2026, monday.com forecasts revenue of $1.466 billion to $1.474 billion, reflecting 19% to 20% growth. The consensus estimate is pegged at $1.46 billion. Adjusted operating income is expected to reach $185 million to $191 million, while adjusted free cash flow is projected between $280 million and $290 million.
Is MNDY a Good Stock to Buy?
According to TipRanks, MNDY stock has received a Moderate Buy consensus rating, with 15 Buys and seven Holds assigned in the last three months. The average Monday.com stock price target is $116.70, suggesting a potential upside of 49.21% from the current level.
However, it’s worth noting that estimates will likely change following today’s earnings report.
