monday.com Q4 Earnings Beat Expectations Amid AI Concerns
monday.com Ltd. is experiencing a significant pre-market decline of 14.89%, hitting a 52-week low amid broader market weakness, with the Nasdaq-100 down 0.21% and the S&P 500 down 0.05%.
Despite the overall market downturn, monday.com recently reported strong Q4 earnings, with a non-GAAP EPS of $1.04, exceeding estimates by $0.12, and a revenue of $333.9 million, reflecting a 24.6% year-over-year growth. This performance highlights the company's robust market demand and growth potential, even as concerns about AI disruptions loom over the software sector.
The strong financial results and optimistic outlook for Q1 FY 2026, with expected revenue between $338 million and $340 million, suggest that monday.com is well-positioned to navigate the challenges posed by AI technology, potentially attracting investors looking for resilient companies in a turbulent market.
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- Class Action Initiated: Pomerantz LLP has filed a class action lawsuit against monday.com, alleging securities fraud and other unlawful business practices by the company and certain officers, with investors advised to apply as Lead Plaintiff by May 11, 2026, to protect their rights.
- Stock Price Volatility: Following the release of its Q3 2025 financial results and weaker Q4 guidance on November 10, 2025, monday's stock price plummeted by $23.38, or 12.33%, closing at $166.21, indicating market disappointment with its performance outlook.
- Long-Term Target Adjustment: On February 9, 2026, monday reported its Q4 and full-year 2025 results, downgrading its 2026 guidance and abandoning its long-term revenue target of $1.8 billion for 2027, which led to a further decline of $20.37, or 20.79%, to close at $77.63, reflecting investor concerns about the company's future.
- Legal Background: Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, having fought for the rights of victims of securities fraud for over 85 years and recovering millions in damages for class members, showcasing its strong legal expertise.
- Driven Brands Lawsuit: A class action against Driven Brands Holdings Inc. alleges that from May 2023 to February 2026, the company failed to disclose critical financial information, leading to investor misunderstandings about its operations, which could negatively impact shareholder confidence and stock performance.
- monday.com Lawsuit: The class action filed against monday.com Ltd. claims that the company misrepresented slowing customer growth and extended sales cycles, making its $1.8 billion target for 2027 increasingly unlikely to be met, potentially resulting in investor losses.
- Camping World Lawsuit: Camping World Holdings, Inc. faces a class action lawsuit alleging it overstated its inventory management capabilities and failed to accurately disclose its financial health, which may lead to diminished investor confidence in the company's future profitability.
- Trip.com Lawsuit: A class action against Trip.com Group Limited asserts that the company did not disclose regulatory risks associated with its monopolistic practices, potentially leading to investor misjudgment regarding the company's prospects and impacting shareholder interests.
- Shareholder Lawsuit Notice: The Gross Law Firm has issued a notice to shareholders of monday.com Ltd., encouraging those who purchased shares during the class period from September 17, 2025, to February 6, 2026, to contact the firm regarding potential lead plaintiff appointment for possible recovery.
- Financial Performance and Market Reaction: Despite reporting a revenue of $316.9 million for Q3 2025, a 26% year-over-year increase exceeding the 24% consensus, monday.com issued a softer guidance for Q4 due to a shift in marketing strategy, causing its stock price to drop from $189.59 to $166.21.
- 2026 Outlook Downgrade: On February 9, 2026, monday.com reported positive results for Q4 2025 but simultaneously downgraded its 2026 guidance and abandoned its long-term revenue target of $1.8 billion for 2027, leading to a dramatic stock price decline from $98.00 to $77.63, a drop of approximately 21%.
- Shareholder Registration Deadline: Shareholders must register by May 11, 2026, to participate in the class action lawsuit, and upon registration, they will receive updates on the case's progress, ensuring their rights are protected.
- Class Action Initiation: Bernstein Liebhard LLP announced that a shareholder has filed a securities class action lawsuit on behalf of investors who purchased monday.com Ltd. stock between September 17, 2025, and February 6, 2026, alleging misrepresentation of the company's financial condition during this period.
- Lawsuit Details: Investors who acquired shares during the specified period and suffered losses can opt to join the lawsuit, with a deadline set for May 11, 2026, while those who choose not to participate will remain absent class members.
- Law Firm Background: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has extensive experience in litigating hundreds of class actions, underscoring its strong reputation in the legal field.
- Fee Arrangement: All representation is on a contingency fee basis, meaning shareholders incur no fees or expenses, which reduces the financial burden on investors and encourages more affected shareholders to take action.
- Class Action Overview: Holzer & Holzer, LLC reminds investors of a class action lawsuit against Driven Brands Holdings Inc. (NASDAQ: DRVN), alleging false or misleading statements made between May 2023 and February 2026, resulting in significant investor losses.
- Deadline for Action: Investors must apply to be appointed lead plaintiff in the Driven Brands case by May 8, 2026, highlighting the urgency and importance of this legal action.
- monday.com Lawsuit Details: A similar class action against monday.com Ltd. (NASDAQ: MNDY) alleges failure to disclose critical financial information from September 2025 to February 2026, with a lead plaintiff application deadline of May 11, 2026.
- Camping World Litigation Status: Camping World Holdings, Inc. (NYSE: CWH) faces allegations regarding financial transparency issues from April 2025 to February 2026, with investors needing to act by May 11, 2026, to safeguard their rights.
- Class Action Notice: Rosen Law Firm reminds investors who purchased monday.com (NASDAQ:MNDY) common stock between September 17, 2025, and February 6, 2026, to apply as lead plaintiffs by May 11, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that monday.com made false or misleading statements regarding its revenue growth outlook, concealing material adverse facts that led to investor losses when the truth emerged, highlighting risks of decelerating growth and extended sales cycles.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, recovering over $438 million for investors in 2019 alone, demonstrating its expertise and successful track record in this field.
- Investor Guidance: Investors are encouraged to select qualified counsel with proven success, avoiding firms that merely act as intermediaries, to ensure effective legal representation and support in the class action process.











