Monday.com (MNDY) Stock: Investors Dump Shares After Guidance Miss

TLDR

• Monday.com (MNDY) delivered Q4 adjusted earnings of $1.04 per share, beating the $0.92 consensus estimate
• Q4 revenue of $333.9 million topped analyst expectations of $329.51 million, up 25% from prior year
• Stock fell 15% premarket after 2026 operating income guidance of $165-$175 million missed $218 million estimate
• Company projects 2026 revenue of $1.45-$1.46 billion, below Wall Street’s $1.48 billion forecast
• MNDY down 34% in 2026 and 69.99% over past year as software sector struggles continue

Monday.com shares sold off sharply in premarket action Monday after the work-management software provider posted strong quarterly results but issued guidance that missed expectations. The company beat on both earnings and revenue for the fourth quarter.

Adjusted earnings came in at $1.04 per share. That topped the analyst consensus of $0.92 per share by $0.12.

Revenue hit $333.9 million for the quarter. Wall Street had estimated $329.51 million.

monday.com Ltd., MNDY

The top-line figure marked a 25% increase from the same quarter last year. But the positive momentum in Q4 couldn’t offset concerns about the year ahead.

Monday.com projected 2026 operating income in the range of $165 million to $175 million. Analysts had been modeling $218 million.

That represents a miss of about $50 million at the guidance midpoint. The gap sparked immediate selling pressure on the stock.

Weak Revenue Guidance Compounds Concerns

The revenue outlook added to investor worries. Monday.com expects 2026 revenue between $1.45 billion and $1.46 billion.

The Street’s estimate sat at $1.48 billion. Even at the high end of the range, the company’s forecast falls short.

Shares dropped 15% in premarket trading. The stock closed Friday at $98.00 after another rough week.

Year-to-date, MNDY has declined 34%. The past three months have seen the stock fall 38.98%.

Over a 12-month period, shares are down 69.99%. The software sector has faced intense pressure as growth stocks fall out of favor.

Analyst Activity Remains Constructive

Despite the stock’s poor performance, Wall Street analysts have maintained a generally positive stance. Monday.com received 17 positive EPS revisions over the last 90 days.

Only one negative revision occurred during that stretch. InvestingPro gives the company a “good performance” rating for financial health.

The Q4 beat shows Monday.com can still execute on its core business. Revenue exceeded estimates by $4.39 million.

Earnings per share came in about 13% above forecasts. But the market is clearly pricing in concerns about future performance rather than rewarding past results.

The conservative guidance suggests management sees headwinds building. The operating income projection implies margin pressure could intensify.

Software companies have struggled to maintain valuations as investors shift toward defensive sectors. Higher rates and economic uncertainty have accelerated the rotation.

Monday.com’s guidance miss adds to a growing list of software names disappointing on outlook. The sector has seen multiple compression throughout the recent selloff.

The premarket reaction indicates investors aren’t buying the dip yet. Shares need to find support before sentiment can improve.

Monday.com posted Q4 revenue of $333.9 million and adjusted EPS of $1.04, both exceeding analyst projections for the period.

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