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what it is
Monday.com sells software that lets your team build workflows, track projects, and run work without heavy coding.
how it gets paid
Last year Monday made $1.2B in revenue. work management was the main engine at $0.48B, or 40% of sales.
what just happened
Latest quarter revenue hit $291M, up 40% vs. prior year, while EPS rose 34% to $0.55.
At a glance
B+ balance sheet — decent shape, but not bulletproof
105.6x trailing p/e — you're paying up for this one
6.5% return on capital — nothing to write home about
xvary composite: 41/100 — below average
$1.75 fy2026 eps est
What they do
monday.com sells software that lets your team build workflows, track projects, and run work without heavy coding.
monday sells one system across projects, sales, dev, and service. That matters because 120,000+ teams use it, and your workflows, automations, and integrations pile up in one place. Switching costs → leaving gets annoying fast → so what: that stickiness helps support growth while long-term debt stays at just $92M, or 1% of capital.
How they make money
$1.2B
annual revenue
work management
$0.48B
+19%
crm
$0.26B
+19%
dev
$0.22B
+19%
service and other
$0.24B
+18%
The products that matter
core workflow platform
monday.com Work OS
starts at $9 per user per month
it's the main platform, priced from $9 per user per month and used by more than 120,000 teams. That scale matters because workflow tools get harder to rip out once an entire team builds around them.
120,000+ teams
ai workflows and assistants
AI product suite
built for the next growth leg
management is leaning hard into AI while guiding 2026 growth to 18%–19%. That's the quiet part loud: AI is not a bonus here. It's the argument for why growth can speed up again instead of settling into the high teens.
18%–19% growth guide
large-customer expansion
enterprise accounts
$100,000+ arr customer cohort
the number of paid customers spending more than $100,000 in annual recurring revenue rose 48% in q3. That's the cleanest healthy number here because larger customers usually stick longer and buy more.
+48%
Key numbers
$3.0B
2028 revenue goal
Revenue estimate → future sales → so what: the stock is being judged on a path from about $1.49B in 2025 revenue to $3.0B by 2028.
105.6x
trailing p/e
P/E → price compared with profit → so what: you are paying over 105 years of current earnings for one share.
10.5%
operating margin
Operating margin → profit after running the business → so what: monday keeps about 11 cents from each sales dollar before taxes and interest.
$92M
long-term debt
Long-term debt → money owed over years → so what: debt is only 1% of capital, which gives the company room if growth slows.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $92M (1% of capital)
- net profit margin 7.2% — keeps 7 cents of every dollar in revenue
- return on equity 6% — $0.06 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for MNDY right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $291M, up 40% vs. prior year, while EPS rose 34% to $0.55.
The company also posted a massive recent EPS surprise, with $1.04 versus a $0.20 estimate, or 420%. Gross margin is about 89%, in line with typical SaaS economics.
$291M
revenue
$0.55
eps
89.0%
gross margin
the number that mattered
Revenue growth of 40% mattered most because it shows demand is still running far ahead of the 18%-19% full-year growth guide.
-
shares of monday.com have moved considerably lower in price over the past three months.the stock has faced selling pressure due to concerns about disruption in artificial intelligence markets.
-
specifically, investors are worried that ai tools could allow companies to build their own software, which might lower demand for third-party platforms such as monday.com.a selloff in the broader tech sector as well as the stock's expensive valuation have also been contributing factors.
-
the company reported strong results for the third quarter.
-
the top line advanced roughly 26%, from a year ago.
-
the number of paid customers with more than $100,000 in annual recurring revenue rose 48% from the prior-year period.expenses also increased, though earnings per share of $0.25 compared favorably with the prior-year deficit.
source: company earnings report, 2026
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What could go wrong
monday.com's main risk is not abstract competition. It's the combination of slower growth, thinner margins, and AI making the workflow layer easier to replicate.
med
ai disintermediation
The fear is simple. If AI agents make it easier for teams to build basic workflow tools themselves, monday. Com's core value proposition gets weaker. That concern was part of the recent selloff because management is pitching AI as the growth answer while investors also see it as a substitution risk.
About $1.1B of the revenue shown on this page comes from subscriptions. If customers decide the workflow layer is easier to build than buy, the core engine takes the hit.
med
margin compression
Gross margin was 90%, but management guided it to the mid-to-high 80s in 2026. Q4 gaap operating margin also fell to 1% from 4%.
That is a two-front problem: less profit on each revenue dollar and less confidence that scale is showing up where investors expected it to.
med
valuation still assumes a cleaner story
A 105.6x trailing p/e is a rich multiple for a company guiding 18%–19% growth. The stock already dropped 20% after earnings, but expensive software rarely gets the benefit of the doubt when growth slips below 20%.
If the top line stays in the high teens and profitability does not recover, the business and the multiple can both disappoint at once.
med
securities litigation overhang
A shareholder class action was filed on march 10, 2026, alleging securities fraud under sections 10(b) and 20(a) of the exchange act. Lawsuits do not always matter operationally, but they matter more when confidence is already fragile.
The direct financial cost is unclear in this snapshot. The near-term damage is attention, headlines, and one more reason for institutions to wait for cleaner execution.
If subscription growth slows while gross margin moves from 90% into the 80s, you do not just have a business problem. You have a valuation problem too.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next catalyst
q1 2026 earnings report
expected for may 11, 2026. The key question is simple: does management still guide 18%–19% growth, or does the slowdown deepen before the AI pitch starts showing up in demand.
metric
gaap operating margin
Q4 fell to 1% from 4%. If that line does not recover, the market will keep treating 90% gross margin as an attractive statistic rather than proof of a strong earnings model.
trend
$100,000+ arr customer growth
This cohort grew 48% in q3. If enterprise expansion stays strong, it is the cleanest sign customers still see monday.com as a platform and not just a replaceable layer.
risk
gross margin drift into the 80s
Management already guided the move. What matters now is speed. A fast slide would say the AI push is costing more than the market expected.
Analyst rankings
street target midpoint
$159
That implies about 25% upside from $126.70. In human-speak, analysts still see rebound potential, but not enough to pretend the growth scare never happened.
xvary composite
41 / 100
Our composite sits below average because the software economics look good at a glance, but the valuation, volatility, and recent guidance do not line up cleanly.
institutional tone
2 qtrs
Institutions have been net sellers for two straight quarters. That is not a panic signal. It is a patience signal.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 232 buyers vs. 235 sellers in 3q2025. total institutional holdings: 40.6M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$84
$234
$127
current price
$159
target midpoint · +25% from current · 3-5yr high: $315 (+150% · 25% ann'l return)
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