Monday.com (MNDY) Stock Crashes Despite Crushing Earnings Expectations

TLDR

Table of Contents

Monday.com (MNDY) beat Q4 earnings with $1.04 per share versus $0.92 expected and revenue of $333.9 million against $329.51 million consensus
Stock plunged 15% in premarket trading despite the earnings beat on disappointing 2026 guidance
Company projects 2026 operating income of $165-$175 million, well below Wall Street’s $218 million estimate
Full-year 2026 revenue guidance of $1.45-$1.46 billion missed analyst expectations of $1.48 billion
MNDY shares are down 34% year-to-date, caught in the broader software sector selloff

Monday.com stock tumbled in early trading Monday despite posting fourth-quarter results that topped Wall Street expectations. The work-management software provider delivered an earnings beat but spooked investors with cautious guidance for the year ahead.

$MNDY (monday) #earnings are out: pic.twitter.com/E0I7hiVvKd

— The Earnings Correspondent (@earnings_guy) February 9, 2026

The company reported adjusted earnings of $1.04 per share for the fourth quarter. That beat analyst estimates of $0.92 per share by $0.12.

Revenue came in at $333.9 million for the quarter. That topped the consensus estimate of $329.51 million and marked a 25% increase from the same period last year.

monday.com Ltd., MNDY

But investors quickly shifted their focus to the company’s 2026 outlook. Monday.com projected operating income between $165 million and $175 million for the full year.

That forecast fell well short of Wall Street’s expectations. Analysts had been expecting operating income of $218 million heading into the earnings report.

The revenue guidance also disappointed. Monday.com expects 2026 revenue between $1.45 billion and $1.46 billion.

Analysts had estimated $1.48 billion for the full year. The midpoint of Monday.com’s guidance represents a roughly $30 million shortfall from expectations.

Market Reaction and Stock Performance

Shares dropped 15% in premarket trading following the earnings release. The stock closed Friday at $98.00 after a brutal stretch for the company.

MNDY is down 34% year-to-date. The stock has fallen 38.98% over the past three months.

The 12-month performance looks even worse. Shares have declined 69.99% over the past year.

Monday.com has been swept up in the broader software sector selloff. The entire industry has faced pressure as investors rotate out of growth stocks.

Analyst Activity and Financial Health

The company has seen mostly positive analyst activity in recent months. Monday.com received 17 positive earnings revisions in the last 90 days.

Only one negative revision came through during that period. InvestingPro rates Monday.com’s financial health score as showing “good performance.”

The earnings beat marks another quarter of execution on the top and bottom lines. But the conservative guidance suggests management sees headwinds ahead.

The operating income miss of roughly $50 million at the midpoint raises questions about profitability expectations. Revenue growth is expected to continue but at a pace that fell short of analyst models.

The stock’s steep decline this year reflects both company-specific concerns and broader sector weakness. Software stocks have faced multiple compression as interest rates remain elevated.

Monday.com’s Q4 revenue of $333.9 million beat estimates by $4.39 million while earnings per share topped forecasts by 13%.

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