MNDY

monday.com has seen its share price slide in recent years, and the latest leg of that move leaves investors asking what the current valuation really says about the company’s earnings power. With the stock now trading at US$87.96, the key issue is whether that price lines up with the profits the business is generating today and what it may realistically earn over time. Over the past 5 years, monday.com has delivered a share price decline of 75.8%, which puts the focus squarely on whether the remaining equity value is adequately supported by its earnings profile. The business is heavily geared toward subscription software, so any shift in customer retention, pricing, or operating efficiency can quickly change how much of its revenue turns into sustainable profit. There is a second opinion on monday.com worth weighing. See what analysts think monday.com's shares could be worth. For investors, the debate is whether monday.com’s current share price is properly explained by the earnings it generates and the trajectory of those earnings from here. If you are reassessing monday.com through the lens of earnings, it can help to compare it with a broader set of software names filtered by clear rules, starting with 30 high quality undervalued stocks. The P/E ratio is a useful lens for monday.com because earnings now form a clearer anchor for what buyers are paying per share. The stock trades on a P/E of 30.7x, which is slightly above the broader software industry average of 29.5x but below the peer group average of 41.4x. That places the valuation in the middle of the software pack rather than at an extreme premium or discount to direct competitors. A tailored fair multiple that blends monday.com’s sector, size, margins and risk profile points to a higher P/E than where the shares currently change hands. On that framework, the stock screens undervalued relative to what investors might usually pay for a similar earnings profile, even though it is close to the overall sector average. For anyone weighing whether this gap reflects opportunity or a value trap, the next step is to look at how reliably those earnings can be sustained and grown over time. Explore the numbers behind monday.com's P/E valuation. Narratives on monday.com pick up where the P/E debate leaves off, explaining what kind of future growth, profit margins and earnings profile would need to occur for the stock to be worth materially more or less than it is today. Rather than relying on a single multiple or model output, each narrative sets out the key assumptions that feed into its view of fair value so you can compare those assumptions with the actual results as they appear on Simply Wall St's Community page. One of the top community narratives on monday.com: 19% undervalued Discover why this Narrative puts monday.com at 19% undervalued. There is a separate piece of the monday.com puzzle that sits outside current earnings, which is where professional forecasts place the business a few years from now, and how that compares with today’s price. Explore where analysts expect monday.com to be in a few years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MNDY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at productivity software stocks, starting with monday.com (NASDAQ:MNDY). Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks. The 16 productivity software stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 0.9% above. Luckily, productivity software stocks have performed well with share prices up 17.4% on average since the latest earnings results. With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ:MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces. monday.com reported revenues of $364.6 million, up 21.9% year on year. This print exceeded analysts’ expectations by 2.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates. monday.com delivered the weakest guidance update and weakest full-year guidance update among its peers. The company added 287 enterprise customers paying more than $50,000 annually to reach a total of 4,834. Interestingly, the stock is up 2.5% since reporting and currently trades at $95.50. Is now the time to buy monday.com? Access our full analysis of the earnings results here, it’s free. Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services. SoundHound AI reported revenues of $61.9 million, up 45% year on year, outperforming analysts’ expectations by 18.1%. The business had an incredible quarter with an impressive beat of analysts’ billings estimates. SoundHound AI pulled off the biggest analyst estimate beat and fastest revenue growth of the whole group. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $6.45. Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free. With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ:PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes. Pegasystems reported revenues of $420.7 million, up 9.4% year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ billings estimates. Pegasystems delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 24.5% since the results and currently trades at $38.51. Read our full analysis of Pegasystems’s results here. Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ:APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge. Appian reported revenues of $203.3 million, up 19.1% year on year. This print topped analysts’ expectations by 5.1%. It was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations. Appian delivered the highest guidance raise and highest full-year guidance raise among its peers. The stock is up 27.9% since reporting and currently trades at $38.31. Read our full, actionable report on Appian here, it’s free. Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE:ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace. Asana reported revenues of $216.4 million, up 9.9% year on year. This number beat analysts’ expectations by 1%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations significantly. The company added 675 enterprise customers paying more than $5,000 annually to reach a total of 26,778. The stock is down 4.9% since reporting and currently trades at $9.60. Read our full, actionable report on Asana here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Braze sank 11% on below-consensus Q3 EPS guidance despite beating Q2 with 26% revenue growth, while Klaviyo refused to sell off in sympathy. IGV held flat and peers Twilio, HubSpot, and Monday.com showed no sympathy selling, confirming single-name repricing rather than a sector verdict. Bulls cite $1.1 billion in remaining obligations, up 27%, and a fresh $50 million buyback, while bears demand proof of AI leverage now. Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Klaviyo didn't make the cut. Enter your email to see the names that beat KVYO. The report is free. Enter your email and see if any of your stocks made the cut. Braze (NASDAQ:BRZE) delivered a beat and a raise on Tuesday afternoon, and its stock is tumbling anyway. The gap tells you the market is pricing the next quarter's earnings line rather than the full-year trajectory management is trying to build. Braze stock is down 12% to $26.58 early Wednesday after the company guided fiscal third-quarter adjusted earnings below what analysts had modeled. The move erases much of the summer bounce and puts the shares back into the $27 range on heavy volume. Meanwhile, Klaviyo (NYSE:KVYO) stock is up 3% to $18.42, notably refusing to sell off in sympathy with its closest-sized peer. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is nearly unchanged at $102.90. At the same time, the Invesco QQQ Trust (NASDAQ:QQQ) is down 0.36% to $715.80, so large-cap tech weakness isn't the driver of Braze's move. Braze's second-quarter fiscal 2027 print looked strong on the surface. The company's revenue reached $227.23 million, up 26.2% year over year (YoY), and its non-GAAP EPS of $0.19 beat the $0.16 consensus. Dollar-based net retention at Braze improved to 110% and its free cash flow jumped to $21.7 million. Free Report, Just Released Why Didn't KVYO Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And KVYO didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → CEO Bill Magnuson said Braze delivered 26% year-over-year revenue growth alongside improving operating leverage and record second-quarter free cash flow. The company's non-GAAP operating margin expanded to 9.7% from 3.4% a year earlier, and its large-customer cohort (spending at least $500,000 annually) grew to 361 from 282. The selloff traces to one line. Braze guided its third-quarter fiscal 2027 adjusted EPS to a range of $0.13 to $0.14, below Street models, even as its Q3 revenue guidance of $229 million to $230 million came in above consensus. Analysts at Raymond James told investors to buy the dip, calling Braze a secular winner and pointing to management's plan to accelerate investments ahead of next fiscal year. Klaviyo already reported its own Q2 on August 5, with revenue growth of 26.4% YoY and a raised full-year revenue outlook of $1.526 billion to $1.534 billion. That report is still doing the work today, keeping Klaviyo stock steady while Braze absorbs the guidance repricing. Twilio (NYSE:TWLO), HubSpot (NYSE:HUBS), and Monday.com (NASDAQ:MNDY) round out the customer engagement and CRM peer group, and none is trading down in sympathy this morning. The flat move in the software fund confirms this is a single-name repricing, not a sector verdict on growth software. The bull and bear cases are reading the same fact in opposite directions. The bulls point to Braze's $1.1 billion in remaining performance obligations, up 27% YoY, plus a completed $50 million repurchase and a fresh authorization of the same size. The bears see softer near-term margins landing at a moment when the market wants proof of AI leverage now. Braze hosts its Forge 2026 flagship conference September 28-30 in Las Vegas, with an investor reception on Tuesday, September 29. Investors can watch for management's commentary on AI Decisioning Studio, Agent Console adoption, and the newly signed three-year AWS strategic collaboration that expands Marketplace procurement and joint go-to-market. Braze also flagged Q3 margin pressure tied to Forge, global customer events, and new sales capacity added ahead of next year, which is exactly the spending pattern reflected in the softer earnings guide. Traders can stay tuned for the first sell-side revisions on out-year estimates, which will decide whether today's move gets bought back into the print. Investors weighing their exposure should calibrate their holdings carefully given management's decision to spend ahead of next year's growth. Share positions should reflect the fact that Braze's near-term margin dip is planned rather than accidental, and that the software fund held firm while a single name absorbed the guidance shock. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And KVYO wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. 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monday.com stock has given long term shareholders a difficult ride, with the share price down about 75.7% over the past 5 years, while current valuation checks suggest the shares now trade at roughly in line levels rather than at an obvious discount or premium. For investors, the recent pullback leaves the question of whether the current price around US$94 reflects a fair view of the company’s prospects. The roughly 75.7% decline over 5 years means anyone who bought and held through that period has seen substantial value eroded. This often forces a closer look at what the current price is really implying. monday.com’s ability to keep expanding its customer base and improve how efficiently it turns revenue into sustainable free cash flow can support the stock. Any sign that long term growth or profitability may fall short of expectations could pressure the valuation further. The broader valuation checks point to a mixed picture rather than a clear bargain or clear overvaluation, with the company scoring 4 out of 6 on value measures. The issue now is whether monday.com’s current share price fairly reflects its long term cash flow and growth potential after such a deep multi year decline. Compare monday.com’s mixed 4 out of 6 value score with other potential opportunities by scanning 54 high quality undervalued stocks, which also pair fundamentals with more resilient recent share price performance. The P/E ratio is a useful cross check for monday.com because the company is now profitable and has an earnings base that investors can compare with peers. On this measure, monday.com trades on about 32.9x earnings, which is slightly above the broader Software industry average of roughly 31.0x but below the peer group average of about 39.1x. That places the stock somewhere in the middle of the pack rather than at an extreme. A more tailored “fair” P/E multiple that considers monday.com’s growth profile, margins, size and risk is around 34.4x. The current market P/E is therefore a little below that level, yet close enough that the gap is not dramatic. For shareholders, this indicates the market is pricing monday.com without a clear discount or premium based purely on reported earnings. Overall, monday.com appears roughly fairly valued on its P/E multiple when compared with both its tailored fair ratio and sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for monday.com pick up where the valuation puzzle leaves off. They set out the specific paths for monday.com's revenue, margins and earnings that would need to play out for the stock to end up worth materially more or less than today’s price. They turn a single valuation number into a set of trackable assumptions so you can see over time whether that story is still on course. Community views on monday.com are wide apart, with some investors leaning into the AI work platform story and others focusing on execution risk and competition. Bull case: 13% undervalued Read the full Bull Case to see why monday.com could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why monday.com could be overvalued Do you think there's more to the story for monday.com? Head over to our Community to see what others are saying! For now, monday.com looks priced about right on its P/E multiple, with no clear signal that the stock is either heavily discounted or stretched. That puts the focus squarely on execution rather than rerating potential. The debate from here is whether monday.com can keep converting its growth story into durable margins and free cash flow without needing a richer multiple to do the heavy lifting. Your view on that earnings and cash flow path is likely to drive whether the current valuation feels like an opportunity or simply fair. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MNDY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

monday.com’s second quarter was marked by strong execution of its AI-focused strategy, though the market responded negatively to the results. Management attributed the performance to accelerated adoption of AI products, particularly among large enterprise customers, and highlighted a deliberate shift toward upmarket sales and operational streamlining. Co-CEO Roy Mann noted, “AI products adoption continues to accelerate and customers’ response to our new direction continue to exceed our expectations.” The quarter also included a significant 20% workforce reduction, with most savings directed toward product and AI investments. Is now the time to buy MNDY? Find out in our full research report (it’s free). Revenue: $364.6 million vs analyst estimates of $355.3 million (21.9% year-on-year growth, 2.6% beat) Adjusted EPS: $1.48 vs analyst estimates of $1.11 (32.8% beat) Adjusted Operating Income: $61.11 million vs analyst estimates of $47.18 million (16.8% margin, 29.5% beat) The company reconfirmed its revenue guidance for the full year of $1.47 billion at the midpoint Operating Margin: -0.4%, up from -3.9% in the same quarter last year Customers: 4,834 customers paying more than $50,000 annually Net Revenue Retention Rate: 113%, down from 114% in the previous quarter Annual Recurring Revenue: $1.46 billion (21.9% year-on-year growth, beat) Billings: $361.1 million at quarter end, up 13.8% year on year Market Capitalization: $3.7 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan MacWilliams (Wells Fargo) asked about the current demand environment, particularly downmarket softness. Co-CEO Eran Zinman noted strong AI adoption across segments, but acknowledged that demand trends remain largely unchanged from earlier in the year. Scott Berg (Needham) inquired about elevated R&D expenses and their sustainability. Co-CEO Eran Zinman replied that high investment in R&D is expected to continue given the company’s transition, but it should not increase significantly as a percentage of revenue moving forward. Howard Ma (Guggenheim Securities) pressed on the long-term impact of the new mandatory AI pricing model. Co-CEO Roy Mann responded that while early results are positive, it is too soon to predict full effects on net dollar retention. James Wood (TD Cowen) asked about the focus of sales and marketing investments post-restructuring. CFO Eliran Glazer clarified that most savings are being reinvested in AI and product talent, with upmarket sales resources growing despite overall headcount cuts. Elizabeth Elliott (Morgan Stanley) questioned the sustainability of double-digit enterprise seat growth and how AI monetization could impact NDR. CFO Eliran Glazer pointed to strong gross retention and ongoing upmarket momentum as offsets to near-term NDR pressure. In the coming quarters, our analysts will be tracking (1) the pace of AI adoption and credit-based consumption among both new and existing enterprise customers, (2) the effectiveness and speed of operational execution following the workforce reduction and restructuring, and (3) the ability of monday.com’s new product segmentation—particularly in CRM and service management—to drive differentiated growth. Additional focus will be on evolving customer retention trends and the rollout of further AI capabilities. monday.com currently trades at $88.17, down from $93.13 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Monday.com (MNDY) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The upward trend in estimate revisions for this project management software developer reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Monday.com, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $1.26 per share for the current quarter, which represents a year-over-year change of +8.6%. Over the last 30 days, two estimates have moved higher for Monday.com compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 65%. For the full year, the company is expected to earn $5.07 per share, representing a year-over-year change of +15.2%. The revisions trend for the current year also appears quite promising for Monday.com, with five estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 31.51%. Thanks to promising estimate revisions, Monday.com currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Monday.com because of its solid estimate revisions, as evident from the stock's 6.5% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report monday.com Ltd. (MNDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

monday.com MNDY reported second-quarter 2026 non-GAAP earnings of $1.48 per share, up 35.8% year over year and surpassing the Zacks Consensus Estimate by 29.82%.Revenues rose 22% to $364.6 million and beat the consensus mark by 2.72%.The quarter benefited from stronger operating profitability and continued enterprise traction. AI product ARR doubled from the first quarter and represented 17% of net new ARR added during the second quarter. The company said customers are using AI capabilities across monday Agents, monday Blocks, monday Sidekick and monday Notetaker. Since launch, these products have generated more than 1.7 million agent interactions, 98 million AI block actions, roughly 3 million Sidekick conversations and more than 180,000 Notetaker hours.Management also highlighted early adoption of its seat-and-credit pricing model launched in May. Following a roughly 20% workforce reduction announced in July, monday.com plans to reinvest most of the savings in people, products and AI while operating with fewer management layers and smaller teams. Paid customers with more than $50,000 in annual recurring revenues, or ARR, reached 4,834, up 31% year over year. Customers above $100,000 in ARR increased 37% to 2,019, while those above $500,000 jumped 68% to 114. monday.com Ltd. price-consensus-eps-surprise-chart | monday.com Ltd. Quote The company added 287 net new customers above the $50,000 ARR threshold, 175 above $100,000 and a record 15 above $500,000 during the quarter. Customers above $50,000, $100,000 and $500,000 now account for 43%, 30% and 7% of total ARR, respectively. During the second quarter, net dollar retention was 109% across all customers. The rate was 113% for customers with more than 10 users and 115% for customers with more than $50,000 or $100,000 in ARR.Customers with more than 10 users totaled 65,783, up 6% year over year, and represented 82% of ARR compared with 80% a year earlier. Larger customers continue to be an important driver of the business. Non-GAAP gross margin was 89%, down from 90% in the year-ago quarter. In the reported quarter, non-GAAP operating income increased 35.5% to $61.1 million, while operating margin expanded to 17% from 15%.Non-GAAP research and development expenses rose 40.1% to $83.0 million. Sales and marketing expenses increased 7.3% to $149.4 million, while general and administrative expenses advanced 15.4% to $30.7 million. At the end of the second quarter, total remaining performance obligations, or RPOs, were $937 million, up 34% year over year. Current RPOs, which represent contracted revenues expected to be recognized within the next 12 months, increased 27% to $750 million.The company also continued to diversify beyond work management. New products, including monday CRM and campaigns, monday dev and monday service, represented 11.6% of total ARR at the end of the quarter. As of June 30, 2026, MNDY had Cash and cash equivalents of $853.4 million, while marketable securities were $219.4 million. During the quarter, MNDY repurchased about 2.33 million ordinary shares for roughly $182 million, fully utilizing its $870 million authorized repurchase program.Net cash provided by operating activities was $55.4 million in the reported quarter, down 17.2% year over year.Adjusted free cash flow fell 18.3% to $52.3 million, while adjusted free cash flow margin was 14% compared with 21% a year earlier. For the third quarter of 2026, monday.com expects revenues of $368-$370 million, implying year-over-year growth of 16%-17%. Non-GAAP operating income is projected at $57-$59 million, with an operating margin of roughly 16%.For 2026, revenues are expected between $1.466 billion and $1.474 billion, representing growth of 19%-20%. Non-GAAP operating income is forecast at $230-$234 million, while adjusted free cash flow is expected between $280 million and $290 million. Management raised its full-year non-GAAP operating margin outlook while maintaining its revenue growth and free cash flow guidance. Currently, monday.com carries a Zacks Rank #3 (Hold).Kimball Electronics KE, Analog Devices ADI and Nutanix NTNX are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Kimball Electronics sports a Zacks Rank #1 (Strong Buy), while Analog Devices and Nutanix carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Kimball Electronics shares have returned 3.3% in the past six months. KE is scheduled to report its fourth-quarter fiscal 2026 results on Aug. 12.Analog Devices' shares have gained 14% in the past six months. ADI is scheduled to report its third-quarter fiscal 2026 results on Aug. 19.Nutanix shares have surged 55.7% in the past six months. NTNX is slated to report its third-quarter fiscal 2026 results on Aug. 26. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report monday.com Ltd. (MNDY) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Nutanix (NTNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Q2 revenue was $365 million, up 22% year-over-year. Net Dollar Retention (NDR): Overall NDR was 109% in Q2. Gross Margin: Q2 gross margin was 89%, compared to 90% in the year-ago quarter. Operating Income: Q2 operating income was $61.1 million, up from $45.1 million in the year-ago quarter, with an operating margin of 17% (up from 15%). Net Income: Q2 net income was $65.5 million, compared to $58.3 million in the year-ago quarter. Diluted EPS: Diluted net income per share was $1.48, based on 44.4 million fully diluted shares outstanding. Adjusted Free Cash Flow: Q2 adjusted free cash flow was $52.3 million, with a margin of 14%. Cash Position: Ended Q2 with $1.070 billion in cash equivalents and marketable securities. Customer Additions: Record net additions of over 100,000 and 500,000 customers in Q2. AI ARR: AI ARR doubled from Q1 to Q2, representing 17% of net new ARR added in the quarter. Annual Recurring Revenue (ARR): Crossed $1.5 billion in ARR in July. Headcount: Total employee headcount was 3,169, a decrease of 42 employees since Q1 2026. Warning! GuruFocus has detected 5 Warning Signs with MNDY. Is MNDY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Q2 revenue grew 22% year-over-year to $365 million, with non-GAAP operating margin expanding to 17%. AI ARR doubled from Q1 to Q2, now representing 17% of net new ARR, indicating strong customer adoption of AI capabilities. Record net additions of over 100,000 and 500,000 customers in Q2, driven by strong upmarket momentum. Gross retention at historical highs, with enterprise seat growth still in double digits year-over-year. New seat and credit pricing model for AI is gaining traction, with customers topping up credits, creating a new growth vector. Reduced global workforce by approximately 20% in July, leading to short-term execution risk and uncertainty. Full-year revenue guidance was not raised despite Q2 beat, reflecting caution due to restructuring and near-term headwinds. NDR expected to decline to 108% in FY2026 due to lapping prior pricing actions and softer tier upgrades. Downmarket demand remains soft, with no rebound in performance marketing or top-of-funnel activity expected. R&D expenses increased to 23% of revenue, partly due to strong Israeli shekel, and AI investments are expected to continue. Q: Your AI ARR doubled quarter-over-quarter and now represents 17% of net new ARR. How is the new seat and credit pricing model being received, and is this monetization coming at the expense of other expansions?A: Roy Mann (Co-CEO): It's still early days, but the reception has been strong. We see two patterns with existing and new customers adopting nicely. The most encouraging sign is that customers are reaching the end of their AI consumption buckets and then topping up for more, which is the best indication they are getting value. Eran Zinman (Co-CEO) added that this is the first time we see customers expand not only on human seats but on AI consumption, representing a new vector of growth that didn't exist before. While it's too early to predict the exact impact on NRR, the usage patterns are very encouraging. Q: Can you walk us through the decision not to pass through any of the Q2 upside to the full-year guidance, especially given the strong AI adoption?A: Eliran Glazer (CFO): Our guidance philosophy hasn't changed. We are observing the near-term cost of the 20% workforce reduction, which we had to take into account as a short-term impact. We did not want to layer an aggressive top-line rate on top of the execution risk that hasn't fully played out yet. We prefer to underpromise and overdeliver through this significant transition rather than raise revenue guidance now with uncertainties still present throughout the year. Q: What's changed in the demand environment over the last 90 days, and why is the updated revenue guidance a bit weaker than what we saw 90 days ago?A: Eliran Glazer (CFO): The main change is the restructuring announced on July 22, which has a short-term impact we factored into guidance. It also reflects the lapping of a period of strong growth and near-term NDR pressure from prior pricing increases. The moderation reflects our discipline during a moment of transition as we move upmarket and restructure the organization, but we maintain strong conviction in our long-term trajectory. Q: Customers with over $100,000 ARR grew 37% and over $500,000 ARR grew 68%. What's driving the acceleration at the high end of the customer base?A: Casey Georges (CRO): We're still early in our upmarket motion, so we're getting into customers we traditionally weren't a part of. We see expansion with existing customers as we land small and grow quickly. We're also benefiting from vendor rationalization as customers look to consolidate vendors. Most importantly, customers want context around their AI solutions and are deploying on platforms like ours, positioning us well for those embracing AI. Q: With the 20% headcount reduction, can you detail where the savings will be reinvested and how we should think about margin trajectory and top-line growth next year?A: Eliran Glazer (CFO): The annualized cost savings are expected to be $100 million, and we will reinvest the vast majority into talent, products, and AI. We expect operating margin to expand next year, and we've already raised it for fiscal year 2026, though that only reflects a partial-year benefit of the restructuring. We expect margins to continue growing into 2027. Once the restructuring is complete, combined with AI expansion and sales training, we expect a positive impact on top-line growth next year. Q: How much change have you made on the direct sales side, and how will go-to-market playbooks change? Is there disruption risk?A: Casey Georges (CRO): We've been aligning our best resources upmarket to capture the significant opportunity, which is playing out in record net adds. We're accelerating our Forward Deployed Engineer model to help clients deploy AI apps and agents. The restructuring focused on non-quota carriers and down-market resources, allowing us to accelerate investment upmarket. We're training the sales team continuously rather than through a big event, so they're already fluent with the AI story. We expect headcount for the upmarket sales cohort to grow this year. Q: Can you unpack the downmarket demand environment? How have the no-touch and touch segments performed relative to expectations?A: Eran Zinman (Co-CEO): We have nothing new to report regarding paid search. The top-of-funnel environment remains volatile but pretty much in line with our expectations. We continue to manage performance marketing cautiously. If we see an opportunity to expand, we will, but currently it's in line with what we anticipated at the beginning of the year. Q: Net new ARR from CRM, dev, and service was softer this quarter. What's driving that, and is AI adoption disrupting appetite for other modules?A: Eran Zinman (Co-CEO): The slowdown reflects two dynamics: softer conditions in the downmarket and a shift in go-to-market towards enterprise sales. New product adoption is more concentrated, and our AI pivot is significant, with products themselves changing and adding agentic capabilities. We're not trying to optimize the short term; we're making the right calls for the company's trajectory. As AI capabilities become embedded across products and our enterprise motion strengthens, we expect those products to re-accelerate. Q: What are you assuming on FX for the full-year guide?A: Eliran Glazer (CFO): For revenue, we expect around a 100 to 110 basis point tailwind. However, on the cost side, due to the Israeli shekel being very strong versus the US dollar, we expect between 100 and 200 basis points of negative impact. Q: Can you provide an update on the strategy for monday dev? Is it being de-emphasized?A: Eran Zinman (Co-CEO): monday dev is still a product we sell and offer, but due to changes in the development environment over the past year, it has received less focus. We're rethinking our strategy there, potentially adding more capabilities or changing the product's trajectory. It's still supported and sold, but it definitely has a different focus than CRM and service, which are our primary areas of investment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.