monday.com (MNDY) Stock Skyrockets 21% on Stellar Q1 Earnings Beat

Key Highlights

• First-quarter revenue reached $351.3 million, representing 24.5% annual growth and surpassing projections by 3.6%
• Earnings per share (adjusted) totaled $1.15, crushing the $0.93 Wall Street forecast by 23.4%
• Operating income (adjusted) exceeded projections by 28.9%, while margins expanded to 14%
• Annual revenue outlook received a modest increase to $1.47 billion midpoint
• Shares of MNDY surged 20.9% to reach $87.28 following the earnings announcement

monday.com (MNDY) impressed investors with its Q1 CY2026 financial performance, propelling shares 20.9% higher to $87.28 during extended trading hours.

monday.com Ltd., MNDY

The company posted quarterly revenue of $351.3 million, reflecting a 24.5% year-over-year increase and comfortably surpassing the Street’s $339.1 million projection. The outperformance represents a 3.6% revenue beat.

On the bottom line, adjusted earnings per share reached $1.15, significantly topping the consensus forecast of $0.93 — representing a 23.4% upside surprise. This compares favorably to the $1.10 adjusted EPS figure from the comparable quarter last year.

The results extend monday.com’s streak to four straight quarters of simultaneous revenue and earnings beats.

Adjusted operating income totaled $49.04 million versus analyst expectations of $38.06 million — delivering a 28.9% outperformance. The operating margin reached 14%, while the overall operating margin expanded to 5.6% from 3.5% during the year-ago period.

Free cash flow margin surged to 29.3%, representing a substantial improvement from the previous quarter’s 17% figure. This metric deserves close attention from investors.

Customer Base Shows Resilience

The company closed the first quarter with 4,547 enterprise customers generating over $50,000 in annual recurring revenue. Net dollar retention stood at 114%, maintaining consistency with the previous quarter.

This retention metric indicates that monday.com could have achieved 14.5% revenue expansion purely from existing customers over the trailing twelve months, without acquiring any new accounts — demonstrating strong product engagement and upsell effectiveness.

Total billings came in at $396.9 million, growing 21.6% year over year, though this represents slower growth than reported revenue — potentially signaling changes in payment timing that warrant monitoring in future quarters.

Management Raises Full-Year Outlook

For the second quarter, the company projected revenue of approximately $355 million, closely aligned with the Street’s $352.5 million estimate. The full-year revenue guidance received a modest upward revision to $1.47 billion at the midpoint, compared to the previous $1.46 billion outlook.

Wall Street analysts currently project 16.6% revenue growth over the coming twelve months — representing a deceleration from the 28.8% two-year compound annual growth rate, though still exceeding industry benchmarks.

Current consensus forecasts call for Q2 earnings of $0.97 per share on revenue of $352.5 million. Full fiscal year estimates stand at $4.15 in earnings per share on $1.46 billion in revenue.

Notwithstanding today’s impressive rally, MNDY shares remain down approximately 51.2% year to date, contrasting with the S&P 500’s 8.1% advance during the same timeframe.

Zacks maintains a Rank #3 (Hold) rating on the shares, indicating expectations for near-term performance in line with broader market returns.

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