TLDR
- Monday.com (MNDY) posted Q4 adjusted EPS of $1.04, exceeding the $0.92 analyst consensus by $0.12
- Fourth-quarter revenue reached $333.9 million, beating estimates of $329.51 million with 25% year-over-year growth
- Shares plunged 15% premarket after company guided 2026 operating income to $165-$175 million versus $218 million expected
- 2026 revenue guidance of $1.45-$1.46 billion came in below Wall Street’s $1.48 billion projection
- MNDY stock has fallen 34% year-to-date and 69.99% over the past 12 months
Monday.com stock took a hit in premarket trading Monday despite posting quarterly results that beat analyst expectations across the board. The software company’s conservative outlook for 2026 overshadowed an otherwise strong Q4 performance.
The company reported adjusted earnings of $1.04 per share for the fourth quarter. Analysts had projected $0.92 per share.
Revenue totaled $333.9 million for the period. That surpassed the Street’s forecast of $329.51 million and represented 25% growth compared to last year.
But the positive quarterly results quickly faded as investors digested the company’s guidance. Monday.com expects 2026 operating income between $165 million and $175 million.
Wall Street had penciled in $218 million. The midpoint of management’s range sits roughly $50 million below expectations.
Revenue Outlook Falls Short
The revenue picture also disappointed investors. Monday.com projected full-year 2026 revenue of $1.45 billion to $1.46 billion.
Analyst estimates stood at $1.48 billion heading into the report. The guidance miss suggests slower growth than the market anticipated.
Shares dropped 15% in premarket trading following the announcement. The stock ended Friday’s session at $98.00.
MNDY has lost 34% of its value since the start of 2026. The three-month performance shows a decline of 38.98%.
Looking back over a full year, the stock is down 69.99%. The work-management platform has been swept up in the sector-wide selloff hitting software names.
Wall Street Reaction and Company Health
Analyst activity over recent months has leaned positive despite the stock’s struggles. Monday.com saw 17 positive EPS revisions in the last 90 days.
Just one negative revision came through during that time. The company’s financial health scores as “good performance” according to InvestingPro.
The fourth-quarter performance showed Monday.com can still deliver results that beat expectations. Revenue came in $4.39 million above estimates.
Earnings per share topped forecasts by roughly 13%. But investors are clearly more focused on what lies ahead than what just happened.
The conservative 2026 guidance raises questions about margin pressure and growth sustainability. Software companies have faced headwinds as investors reassess valuations in a higher interest rate environment.
Monday.com’s operating income guidance gap suggests profitability may come under pressure this year. The revenue guidance miss points to potential growth deceleration.
The stock’s sharp premarket decline shows investors aren’t willing to look past the weak outlook. Year-to-date, MNDY has been one of the harder-hit names in the software space.
The company generated $333.9 million in Q4 revenue while posting $1.04 in adjusted earnings per share, both beating analyst estimates.
