monday.com Raises 2026 Revenue Forecast to $1.475 Billion After Third-Quarter Growth
Key Facts
On November 9, monday.com raised its fiscal 2026 revenue forecast to $1.473–$1.475 billion, from $1.466–$1.474 billion in its previous guidance, after reporting third-quarter revenue of $377.5 million. The company said quarterly revenue increased 19% year over year, while GAAP operating income was about $31.2 million, compared with a loss of $2.4 million in the same period last year. The company also raised its non-GAAP operating income forecast to $268–$270 million, from $230–$234 million. By contrast, the company’s fourth-quarter revenue range came in below analysts’ consensus, tempering the annual forecast increase. Shares fell 5.7% in premarket trading on November 9, according to Investing.com.
Non-GAAP operating income reached a record $89.4 million in the third quarter, with an operating margin of 24%. In the third quarter of 2025, this measure was $47.5 million, with a 15% margin, highlighting year-over-year improvement in operating profitability. On a GAAP basis, the company moved from an operating loss of $2.4 million to operating income of $31.2 million. Cash flows, however, followed a different trend during the quarter. Net cash provided by operating activities was $20.4 million, and adjusted free cash flow was $63 million, compared with $95.1 million and $92.3 million, respectively, a year earlier.
Quarterly revenue exceeded analysts’ estimate of $369.2 million, while non-GAAP earnings per share came in at $2.14, above the $1.37 estimate. Actual revenue was $377.53 million in results-comparison data, while the company reported $377.5 million in its announcement. Second-quarter revenue was $364.6 million, up 22% year over year, before growth slowed to 19% in the third quarter. In the second quarter, non-GAAP operating income was $61.1 million, compared with $45.1 million in the same period a year earlier. The company had then forecast annual revenue of between $1.466 billion and $1.474 billion, and annual growth of between 19% and 20%.
monday.com set fourth-quarter revenue at between $380 million and $382 million, equivalent to growth of about 14% year over year, and forecast non-GAAP operating income of between $68 million and $70 million and a margin of about 18%. The revenue range is below analysts’ consensus of $385.7 million, explaining the contrast between strong third-quarter results and the stock’s negative premarket reaction. Before the results, analysts had expected third-quarter revenue of $369.2 million and annual growth of 17%, alongside earnings per share of $1.37. Revenue had risen to $364.6 million in the second quarter, compared with the previous quarter. The chief financial officer said the company is investing in enterprise sales, product and artificial intelligence, and that the guidance reflects this balance.
Annual recurring revenue from AI products reached $36 million in the third quarter, and monday agents interactions exceeded six million in less than two quarters. The co-chief executive officers said the company had taken steps to become an AI-focused company, but noted that “an initiative of this scale creates near-term operational hurdles.” Management said in the second quarter that annual recurring revenue from AI products had doubled from the first quarter and accounted for 17% of annual recurring revenue net additions in that quarter. This places growth in AI products alongside the operational challenges management acknowledged as it implements the transition. The company did not attribute its higher annual forecast to confidence alone, linking its guidance to strong fundamentals, work still to be done and ongoing investments.
Customer metrics showed continued growth among the highest-spending tiers. The number of paying customers with annual recurring revenue above $50,000 rose to 5,038 as of September 30, 2026, up 26% from 3,993 a year earlier. The number of customers with annual recurring revenue above $100,000 reached 2,127, an annual increase of 33%. Net dollar retention was 114% among customers with annual recurring revenue above $50,000, compared with 108% overall. Remaining performance obligations totaled $946 million, up 27% year over year, while current remaining obligations reached $759 million, up 22%.