monday.com (MNDY) impressed investors with its Q1 CY2026 financial performance, propelling shares 20.9% higher to $87.28 during extended trading hours.
The company posted quarterly revenue of $351.3 million, reflecting a 24.5% year-over-year increase and comfortably surpassing the Street’s $339.1 million projection. The outperformance represents a 3.6% revenue beat.
On the bottom line, adjusted earnings per share reached $1.15, significantly topping the consensus forecast of $0.93 — representing a 23.4% upside surprise. This compares favorably to the $1.10 adjusted EPS figure from the comparable quarter last year.
The results extend monday.com’s streak to four straight quarters of simultaneous revenue and earnings beats.
Adjusted operating income totaled $49.04 million versus analyst expectations of $38.06 million — delivering a 28.9% outperformance. The operating margin reached 14%, while the overall operating margin expanded to 5.6% from 3.5% during the year-ago period.
Free cash flow margin surged to 29.3%, representing a substantial improvement from the previous quarter’s 17% figure. This metric deserves close attention from investors.
CFO Eliran Glazer characterized the period as “a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations.”
The company closed the first quarter with 4,547 enterprise customers generating over $50,000 in annual recurring revenue. Net dollar retention stood at 114%, maintaining consistency with 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 accounts — demonstrating strong product engagement and upsell effectiveness.
Total billings came in at $396.9 million, growing 21.6% year over year, though this represents slower growth than reported revenue — potentially signaling changes in payment timing that warrant monitoring in future quarters.
For the second quarter, the company projected revenue of approximately $355 million, closely aligned with the Street’s $352.5 million estimate. The full-year revenue guidance received a modest upward revision to $1.47 billion at the midpoint, compared to the previous $1.46 billion outlook.
Wall Street analysts currently project 16.6% revenue growth over the coming twelve months — representing a deceleration from the 28.8% two-year compound annual growth rate, though still exceeding industry benchmarks.
Current consensus forecasts call for Q2 earnings of $0.97 per share on revenue of $352.5 million. Full fiscal year estimates stand at $4.15 in earnings per share on $1.46 billion in revenue.
Notwithstanding today’s impressive rally, MNDY shares remain down approximately 51.2% year to date, contrasting with the S&P 500’s 8.1% advance during the same timeframe.
Zacks maintains a Rank #3 (Hold) rating on the shares, indicating expectations for near-term performance in line with broader market returns.
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