Quick Summary
- Q1 revenue reached $351.3 million, representing a 24.5% year-over-year increase and surpassing projections by 3.6%
- Earnings per share (adjusted) totaled $1.15, crushing the consensus figure of $0.93 by 23.4%
- Operating income (adjusted) exceeded forecasts by 28.9%, with profitability margins expanding to 14%
- Annual revenue outlook received a modest boost to $1.47 billion (midpoint)
- Shares of MNDY skyrocketed 20.9% to reach $87.28 following the earnings announcement
Shares of monday.com (MNDY) experienced a dramatic surge of 20.9%, climbing to $87.28 during after-hours trading following the release of its impressive first-quarter results for calendar year 2026.
The work management platform reported quarterly revenue of $351.3 million, reflecting a robust 24.5% year-over-year growth rate and surpassing Wall Street’s projection of $339.1 million. This represents a meaningful top-line outperformance of 3.6%.
On the earnings front, adjusted earnings per share registered at $1.15, significantly exceeding the analyst consensus of $0.93âtranslating to a 23.4% upside surprise. For comparison, the company posted $1.10 per share (adjusted) during the same period last year.
This performance extends monday.com’s winning streak to four straight quarters of beating both revenue and earnings expectations.
Adjusted operating income totaled $49.04 million, handily surpassing the $38.06 million estimateâa substantial 28.9% beat. The company’s operating margin stood at 14%, while the overall operating margin expanded to 5.6% from 3.5% recorded in the year-ago quarter.
Free cash flow margin saw an impressive jump to 29.3%, a significant improvement from the previous quarter’s 17%. This metric deserves particular attention from investors.
CFO Eliran Glazer characterized the results as “a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations.”
Customer Base Shows Resilience
The quarter concluded with 4,547 enterprise customers generating annual revenue exceeding $50,000. Net revenue retention maintained its position at 114%, unchanged from the previous quarter.
This retention metric indicates that monday.com could have achieved 14.5% revenue expansion purely from existing customers over the trailing twelve months, without acquiring any new accountsâdemonstrating strong product stickiness and customer satisfaction.
Billings totaled $396.9 million, advancing 21.6% year over year, though this growth rate trailed the overall revenue expansionâa dynamic worth monitoring as it may signal a potential deceleration in cash collection velocity ahead.
Forward Outlook Receives Modest Upgrade
For the second quarter, the company projected revenue of approximately $355 million, essentially matching analyst expectations of $352.5 million. The full-year revenue forecast received a slight increase to $1.47 billion at the midpoint, up modestly from the previous guidance of $1.46 billion.
Wall Street analysts are currently forecasting revenue growth of 16.6% over the coming twelve monthsârepresenting a deceleration from the historical two-year trend of 28.8%, though still outpacing the broader sector average.
The prevailing consensus estimate for Q2 projects earnings of $0.97 per share on revenue of $352.5 million. Full fiscal year expectations call for earnings of $4.15 per share with revenue of $1.46 billion.
Notwithstanding today’s significant rally, MNDY shares remain down approximately 51.2% year to date, contrasting sharply with the S&P 500’s 8.1% advance over the same timeframe.
Zacks maintains a Rank #3 (Hold) rating on the stock, indicating expectations for performance roughly in line with the broader market in the near term.
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