Key Highlights
- Q2 earnings per share reached $1.48, surpassing analyst expectations of $1.11 by $0.37
- Quarterly revenue totaled $364.62 million, exceeding the $355.55 million consensus
- Artificial intelligence-related annual recurring revenue doubled from the previous quarter, comprising 17% of net new ARR
- Enterprise clients exceeding $100K in ARR increased 37%; accounts above $500K surged 68%
- Shares opened at $93.13, reflecting a 6.35% gain
Shares of monday.com experienced a 6.35% uptick on Monday following the work management platform’s announcement of second-quarter 2026 financial results that exceeded Wall Street projections.
The stock commenced trading at $93.13, positioning the company’s market capitalization near $4.76 billion. While MNDY remains significantly below its 52-week peak of $252.86, it has recovered substantially from its low point of $57.50.
The work operating system provider delivered quarterly earnings per share of $1.48, substantially exceeding the Street’s $1.11 projection by $0.37. Quarterly sales reached $364.62 million, surpassing analyst forecasts of $355.55 million.
The revenue performance marks a 22% increase compared to the same period last year. Non-GAAP operating income achieved an all-time high of $61.1 million, while GAAP operating losses contracted to merely $1.5 million.
Company leadership attributed the strong performance to a strategic restructuring that intensified concentration on its AI-powered Work Platform. Artificial intelligence-related annual recurring revenue expanded twofold versus the preceding quarter and now represents 17% of net new ARR.
High-Value Customer Expansion Impresses
The expansion among large enterprise clients proved particularly noteworthy. Organizations contributing more than $100,000 in annual recurring revenue expanded by 37% year-on-year.
Accounts exceeding $500,000 in ARR experienced a remarkable 68% surge. Total remaining performance obligations climbed 34% to reach $937 million.
Additionally, the organization finalized its $870 million stock buyback program during the second quarter. Management authorized the transfer of approximately 197,000 shares to its foundation for implementation in Q3.
Net profit margin stood at 9.17% with return on equity measuring 5.10%. The equity currently trades at a price-to-earnings multiple of 40.49.
Wall Street Perspectives
Analyst opinions show mixed sentiment with a positive tilt. Seventeen analysts maintain Buy recommendations, seven suggest Hold, and one advises Sell.
The consensus price objective stands at $126.78, considerably higher than current trading levels.
Canaccord Genuity reduced its price target from $140 to $115 while preserving its Buy recommendation. BTIG decreased its objective from $115 to $105, also retaining Buy.
UBS maintains a Neutral stance with an $85 price objective. Piper Sandler elevated its target from $85 to $90 alongside a Neutral rating.
Tigress Financial presents the most optimistic outlook with a $165 target and Buy recommendation.
Institutional ownership comprises approximately 73.7% of outstanding shares. T. Rowe Price expanded its position by 15% during Q4, currently controlling more than 1.27 million shares.
Forward Outlook
Looking ahead to Q3 and full-year 2026, monday.com projected mid- to high-teens revenue expansion and mid-teens non-GAAP operating margins.
Executive leadership highlighted anticipated foreign currency challenges as a consideration for the remainder of the fiscal year.
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