Monday.com (MNDYN) AI Stock Analysis

Monday.com

(BMV:MNDYN)

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Action:N/A

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Positive Factors

Scalable SaaS economicsThe combination of substantial revenue scaling and consistently exceptional gross margins indicates strong SaaS economics and a scalable platform. These characteristics support durable reinvestment, customer expansion, and operating leverage as monday.com continues moving toward sustained profitability.

Negative Factors

Growth decelerationModerating growth reduces the pace at which monday.com can compound recurring revenue and raises the importance of successful enterprise expansion. Softer downmarket demand and top-of-funnel activity may also limit new customer additions, making future growth more dependent on larger accounts.

Monday.com (MNDYN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 4.04B
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): 40.0
Beta (1Y): ―
Revenue Growth: 7.76%
EPS Growth: 171.74%
Country: Mexico
Employees: 3,155
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Monday.com Business Overview & Revenue Model

Company Description

monday.com Ltd., along with its affiliated entities, designs and provides software solutions for a global market, spanning the United States, Europe, the Middle East, Africa, and other international regions. Its flagship offering is Work OS, an intui...

Monday.com Earnings Call Summary

Earnings Call Date:Aug 09, 2026(Q2-2026)|% Change Since:0.00%|Next Earnings Date:Nov 08, 2026

Earnings Call SentimentPositive

The call highlights solid top-line growth (22% YoY in Q2), improved profitability (non-GAAP operating margin expanding to 17%), strong upmarket traction (large-account growth of 37% and 68% in $100k+/ $500k+ cohorts), and accelerating AI adoption (AI ARR doubled QoQ and early monetization via credit consumption). Offsetting these positives are a sizeable ~20% workforce reduction with near-term execution risk, cautious/tempered guidance for the year, downmarket demand and marketing headwinds, FX-driven margin pressure, and higher R&D intensity as the company retools around AI. Overall, the positives around revenue, ARR milestone, profitability expansion and early AI adoption outweigh the transition-related risks and conservatism.

Positive Updates

Strong Top-Line Growth

Q2 revenue of $365 million, up 22% year-over-year; full year 2026 revenue guidance of $1.466B–$1.474B (19%–20% YoY). Q3 revenue guidance of $368M–$370M (16%–17% YoY).

Negative Updates

Workforce Reduction and Short-Term Execution Risk

Global workforce reduced by ~20% (announced July 22). Management acknowledged this was a difficult decision and flagged short-term disruption and execution risk, which contributed to conservative guidance.

Company Guidance

monday.com provided a detailed outlook: Q3 revenue is guided to $368–370 million (up 16–17% YoY) with non‑GAAP operating income of $57–59 million and an operating margin of ~16% (assuming a 100–200 bps negative FX impact). For full‑year FY26 the company expects revenue of $1.466–1.474 billion (growth of 19–20% YoY), non‑GAAP operating income of $230–234 million and an operating margin of ~16% (again assuming a 100–200 bps negative FX impact), plus adjusted free cash flow of $280–290 million and an adjusted FCF margin of 19–20% (100–200 bps FX headwind). Management also reiterated an NDR assumption around 108% for FY26, expects headcount to be roughly 20% lower by year‑end, and noted Q2 results that set the base for the guide: Q2 revenue $365 million (+22% YoY), Q2 non‑GAAP operating margin 17%, Q2 adjusted FCF $52.3 million (14% margin), $1.07 billion in cash and equivalents, and completion of the $870 million share‑repurchase ($182 million executed in the quarter).

Monday.com Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:MNDYN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRSH	79Outperform	$3.84B	22.42	19.50%	―	15.57%	―
GTLB	72Outperform	$9.01B	-171.50	-5.51%	―	22.99%	-1190.91%
SPT	69Neutral	$730.62M	-24.10	-14.05%	―	11.85%	47.54%
WK	69Neutral	$4.55B	100.73	-123.75%	―	19.67%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	59Neutral	$2.57B	-17.00	-105.68%	―	9.48%	26.94%

* Technology Sector Average

Performance Comparison

MX:MNDYN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:MNDYN	Monday.Com Ltd.	1298.50	0.00	0.00%
WK	Workiva Inc.	83.61	1.74	2.13%
SPT	Sprout Social Inc Class A	12.05	1.84	18.02%
ASAN	Asana, Inc.	11.23	-1.91	-14.54%
FRSH	Freshworks, Inc. Class A	14.72	3.80	34.80%
GTLB	Gitlab, Inc. Class A	54.09	7.59	16.32%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Monday.com AI Stock Analysis