Key Highlights
- Q1 revenue reached $351.3 million, representing a 24.5% increase from the prior year and surpassing Wall Street projections by 3.6%
- Earnings per share on an adjusted basis totaled $1.15, exceeding the consensus forecast of $0.93 by 23.4%
- Operating income on an adjusted basis surpassed analyst projections by 28.9%, with margin expansion to 14%
- Management increased full-year revenue outlook modestly to $1.47 billion at its midpoint
- Shares of MNDY climbed 20.9% to $87.28 following the earnings announcement
monday.com (MNDY) reported impressive Q1 CY2026 financial results, driving shares higher by 20.9% to $87.28 during after-hours trading.
The company generated $351.3 million in revenue, marking a 24.5% year-over-year increase while surpassing the Street’s $339.1 million expectation. The performance represented a 3.6% upside to estimates.
On a per-share basis, adjusted earnings totaled $1.15, significantly outperforming the $0.93 analyst consensus — representing a 23.4% upside. The figure compared favorably to the $1.10 adjusted per-share result from the same period a year earlier.
The quarter represents the fourth successive period where monday.com exceeded Wall Street’s projections for both top-line growth and per-share earnings.
On an adjusted basis, operating income totaled $49.04 million, comfortably ahead of the $38.06 million Street estimate — a 28.9% outperformance. The operating margin reached 14%, while the overall operating margin expanded to 5.6% from 3.5% during the comparable quarter last year.
Cash flow generation showed remarkable improvement, with free cash flow margin reaching 29.3%, advancing notably from 17% in the previous quarter. This metric deserves close monitoring going forward.
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.”
Customer Base Metrics Remain Robust
The quarter concluded with 4,547 customers contributing more than $50,000 in annual recurring revenue. Net dollar retention stood at 114%, unchanged from the previous quarter.
This retention metric indicates monday.com could have achieved 14.5% revenue expansion purely from existing customer growth over the trailing twelve months, even absent new customer acquisition — demonstrating strong product stickiness.
Billings totaled $396.9 million, advancing 21.6% from the year-ago period, although this growth trailed the overall revenue expansion rate — a dynamic worth monitoring as it may signal moderation in near-term cash collection patterns.
Forward Outlook Shows Modest Uplift
For the upcoming quarter, leadership projected revenue around $355 million, generally aligned with Wall Street’s $352.5 million expectation. The full-year revenue forecast received a slight boost to $1.47 billion at the midpoint, up from the previous $1.46 billion target.
Analyst projections currently anticipate revenue acceleration of 16.6% over the coming twelve months — representing a deceleration from the two-year historical growth rate of 28.8%, though still exceeding industry averages.
Current Wall Street consensus for the second quarter calls for $0.97 in EPS alongside $352.5 million in revenue. Full fiscal year estimates anticipate $4.15 per share on $1.46 billion in total revenue.
Despite the session’s strong performance, MNDY shares remain down approximately 51.2% year to date, while the S&P 500 has advanced 8.1% during the same timeframe.
Zacks maintains a Rank #3 (Hold) rating on the equity, indicating expectations for market-level returns in the near term.
