Key Highlights
- Q1 revenue reached $351.3 million, representing a 24.5% increase compared to the same period last year and surpassing analyst projections by 3.6%
- The company posted adjusted earnings per share of $1.15, exceeding the Wall Street consensus of $0.93 by 23.4%
- Adjusted operating income outperformed expectations by 28.9%, while margins expanded to 14%
- The company increased its full-year revenue outlook to $1.47 billion at the midpoint
- Shares of MNDY surged 20.9% to $87.28 in after-hours trading following the announcement
The work collaboration platform monday.com (MNDY) posted impressive first-quarter fiscal 2026 results, propelling shares 20.9% higher to $87.28 during extended trading hours.
The company reported quarterly revenue of $351.3 million, marking a 24.5% year-over-year increase and surpassing Wall Street’s projection of $339.1 million. The performance represents a 3.6% upside surprise on the revenue front.
On the profitability side, adjusted earnings per share totaled $1.15, significantly exceeding the analyst consensus of $0.93 — representing a 23.4% beat. This compares favorably to the $1.10 per share the company reported in the year-ago period.
The latest results represent the fourth straight quarter in which monday.com has exceeded both top-line and bottom-line projections.
Adjusted operating income totaled $49.04 million, comfortably ahead of the $38.06 million analysts anticipated — a 28.9% upside surprise. The company’s operating margin stood at 14%, while the overall operating margin expanded to 5.6% from 3.5% reported in the comparable quarter a year earlier.
Free cash flow margin surged to 29.3%, a significant improvement from the 17% recorded in the previous quarter. This metric is particularly noteworthy for investors tracking the company’s cash generation capabilities.
According to CFO Eliran Glazer, the results represented “a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations.”
Enterprise Customer Base Remains Robust
At quarter’s end, monday.com counted 4,547 customers generating at least $50,000 in annual recurring revenue. The company’s net revenue retention rate held at 114%, unchanged from the previous quarter.
This retention metric demonstrates that monday.com could have achieved 14.5% revenue growth solely from existing customers over the trailing twelve months, even without acquiring any new accounts — a strong indicator of product-market fit and customer satisfaction.
Total billings for the quarter came to $396.9 million, up 21.6% year over year, though this growth rate trailed the overall revenue expansion — a dynamic that merits monitoring as it may signal a shift in payment timing patterns.
Forward Outlook Receives Modest Boost
Looking ahead to Q2, company leadership projected revenue of approximately $355 million, closely aligned with the analyst consensus of $352.5 million. Management also raised its full-year revenue forecast to $1.47 billion at the midpoint, up modestly from the previous guidance of $1.46 billion.
Wall Street currently projects revenue growth of 16.6% over the coming twelve months — a deceleration from the 28.8% two-year compound annual growth rate, though still respectable relative to industry peers.
Analyst consensus for the second quarter calls for adjusted EPS of $0.97 on revenue of $352.5 million. For the complete fiscal year, the Street expects earnings of $4.15 per share on revenue of $1.46 billion.
Despite today’s significant rally, MNDY shares remain down approximately 51.2% for the year, underperforming the S&P 500’s 8.1% gain over the same timeframe.
Zacks Investment Research maintains a Rank #3 (Hold) rating on the stock, indicating expectations for near-term performance in line with the broader market.
