monday.com (MNDY) Stock Surges 20% After Beating on Revenue, EPS and Margins

TLDR

• monday.com reported Q1 revenue of $351.3 million, up 24.5% year on year, beating estimates by 3.6%
• Adjusted EPS came in at $1.15, a 23.4% beat versus the $0.93 consensus estimate
• Adjusted operating income beat estimates by 28.9%, with margins improving to 14%
• Full-year revenue guidance was raised slightly to $1.47 billion at the midpoint
• MNDY stock jumped 20.9% to $87.28 immediately after the results

monday.com (MNDY) delivered a strong Q1 CY2026 earnings report, sending the stock up 20.9% to $87.28 in after-hours trading.

monday.com Ltd., MNDY

Revenue came in at $351.3 million, up 24.5% year on year and ahead of the $339.1 million Wall Street had expected. That’s a 3.6% beat on the top line.

Adjusted EPS landed at $1.15, well above the $0.93 consensus estimate — a 23.4% beat. A year ago, the company earned $1.10 per share on an adjusted basis.

This marks the fourth consecutive quarter that monday.com has beaten both revenue and EPS estimates.

Adjusted operating income hit $49.04 million, against estimates of $38.06 million — a 28.9% beat. Operating margin came in at 14%, with the overall operating margin improving to 5.6% from 3.5% in the same quarter last year.

Free cash flow margin jumped to 29.3%, up sharply from 17% in the prior quarter. That’s a number worth paying attention to.

Customer Metrics Hold Steady

The company ended Q1 with 4,547 customers paying more than $50,000 annually. Net revenue retention came in at 114%, matching the prior quarter.

That retention figure means monday.com would have grown revenue by 14.5% even without adding a single new customer over the past 12 months — a solid sign of stickiness.

Billings reached $396.9 million, up 21.6% year on year, though that growth lagged total revenue growth — something to watch as it could indicate a slower cash collection pace going forward.

Guidance Gets a Nudge Higher

For Q2, management guided for revenue of around $355 million, roughly in line with analyst expectations of $352.5 million. Full-year revenue guidance was lifted slightly to $1.47 billion at the midpoint, up from the prior $1.46 billion.

Analysts currently expect revenue to grow 16.6% over the next 12 months — a step down from the two-year trend of 28.8%, but still above the sector average.

The current consensus EPS estimate for Q2 stands at $0.97 on revenue of $352.5 million. For the full fiscal year, estimates sit at $4.15 per share on $1.46 billion in revenue.

Despite today’s jump, MNDY is still down about 51.2% year to date, compared to an 8.1% gain for the S&P 500.

Zacks currently holds a Rank #3 (Hold) on the stock, suggesting in-line market performance near term.

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