monday.com Earnings Report Triggers 20% Stock Price Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 04 2026
0mins
Source: Newsfilter
- Earnings Report Impact: Following the earnings release on February 9, 2026, monday.com experienced a stock price drop exceeding 20%, reflecting investor concerns regarding the company's future profitability, particularly the significant gap between non-GAAP and GAAP profitability metrics.
- Profitability Metric Discrepancy: For fiscal year 2025, monday.com reported a non-GAAP operating income of $175.3 million with a 14% non-GAAP operating margin, while the GAAP operating loss was nearly breakeven, primarily influenced by stock-based compensation, raising questions about the transparency of the company's profitability.
- Dismal Future Outlook: The company projected a decline in non-GAAP operating income for fiscal year 2026 to between $165 million and $175 million, with margins dropping to 11%-12%, alongside mid-teens percentage headcount growth, indicating ongoing investments in sales and R&D.
- Declining Cash Flow and Gross Margins: monday.com anticipates a decrease in gross margins from 90% in FY2025 to the mid-to-high 80s in FY2026, with adjusted free cash flow guidance of $275 million to $290 million, highlighting a significant deterioration in the overall financial profile amid slowing revenue growth.
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Analyst Views on MNDY
Wall Street analysts forecast MNDY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 67.090
Low
195.00
Averages
235.58
High
310.00
Current: 67.090
Low
195.00
Averages
235.58
High
310.00
About MNDY
Monday.Com Ltd is an Israel-based company engaged primarily in the software sector. The Company provides cloud-based platform that enables its users to create custom applications and project management software. The platform offers a Work Operating System (Work OS) that provides modular building blocks to create software applications and work management tools. This system is designed to enhance team collaboration and streamline workflows across various business functions, including project management, CRM, marketing, and more. The Company has teams in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev, and Sydney. The Company customize its platform to suit any business vertical and serves customers worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Monday.com Shares Drop 5.4% Amid Earnings Anticipation
- Stock Performance: Monday.com (MNDY) closed at $67.09, down 5.4% from the previous session, underperforming the S&P 500's minimal loss of 0.01%, indicating market concerns regarding its future performance.
- Earnings Expectations: Analysts project the upcoming earnings per share (EPS) to be $1.14, reflecting a 4.59% year-over-year increase, with revenue estimated at $354.95 million, an 18.71% rise, showcasing cautious optimism about the company's growth potential.
- Valuation Analysis: MNDY currently trades at a forward P/E ratio of 15.81, which is below the industry average of 18.07, suggesting lower market expectations for its future profitability, potentially affecting investor confidence.
- Industry Ranking: The Internet Software industry, where Monday.com operates, holds a Zacks Industry Rank of 89, placing it in the top 37% of all industries, indicating strong overall performance, though the company's individual performance remains a point of concern.
See More
Analysis of Stock Sale by monday.com Executive
- Transaction Overview: On June 15, 2026, George James Case, CRO of monday.com, sold 838 ordinary shares for approximately $66,000, resulting in a 45.10% decrease in his direct holdings, highlighting potential liquidity concerns.
- Tax Obligation Impact: The transaction involved exercising 1,858 options, with 838 shares sold immediately to cover tax obligations, while the remaining shares increased his direct ownership, indicating that Case still retains a significant economic interest in the company.
- Market Performance Analysis: Despite monday.com reporting $1.30 billion in revenue and $119.35 million in net income, its stock has plummeted by 76.8% over the past year, reflecting a cautious market outlook on its growth potential, even as it maintains competitive advantages in software solutions.
- Investor Considerations: This mandatory tax sale does not necessarily indicate Case's confidence in the stock; while the company excels in customization and customer support, the ongoing stock price decline may dampen investor sentiment and confidence.
See More
monday.com Executive Sells 838 Shares
- Executive Share Sale: George James Case, the CRO of monday.com, sold 838 ordinary shares on June 15, 2026, for approximately $66,000, representing 45.10% of his direct holdings, which may raise concerns about the company's future prospects in the market.
- Transaction Context: The sale was a mandatory tax transaction, indicating that Case's confidence in the stock remains intact; however, the overall market sentiment towards monday.com remains low, with the stock shedding roughly 70% over the past five years.
- Business Performance and Market Competition: As a leading provider of customizable work management software, monday.com leverages a modular platform strategy to maintain a competitive edge in the global SaaS market, despite facing pressure from Microsoft and Salesforce, its configurability and customer support remain key strengths.
- Future Outlook and Investment Advice: While the company has made progress in improving margins and gaining traction with its CRM and service management products, analysts suggest that investors should be cautious about purchasing monday.com stock until market sentiment improves.
See More
monday.com CRO Sells 838 Shares Amid Market Challenges
- Transaction Overview: On June 15, 2026, George James Case, CRO of monday.com, sold 838 Ordinary Shares for approximately $66,000, as reported in an SEC Form 4 filing, indicating executive actions amidst market volatility.
- Ownership Change: Following the transaction, Case's direct holdings decreased by 45.10%, from 1,858 shares to 1,020 shares, reflecting a significant reduction in his economic interest in the company, which may affect investor confidence.
- Tax Obligation Impact: The sale was executed to meet tax obligations, suggesting that this transaction does not necessarily reflect Case's conviction in the stock, prompting investors to interpret his ownership changes with caution.
- Market Competitive Pressure: Despite monday.com's strong performance in customizable work management software, the stock has dropped approximately 70% over the past five years due to competitive pressures from Microsoft and Salesforce, raising concerns about the company's future growth prospects.
See More
monday.com at the Center of AI Impact Debate Among Investors
- Investor Debate Focus: According to Needham analyst Scott Berg, monday.com (MNDY) is at the center of the debate regarding the impact of artificial intelligence on software, with bearish sentiment amplified by its currently depressed valuation despite a growth rate of approximately 20%.
- Complexity of Customer Use: While some investors believe that lightweight alternatives to monday.com can be easily coded, Berg emphasizes that the complexity and governance required for large-scale use make simple replacements unlikely, which will continue to pressure its stock valuation.
- Growth Potential and Cash Flow: Berg maintains a Buy rating with a $125 price target, noting that monday.com's growth outpaces its software peers and its free cash flow continues to compound, with AI potentially representing a significant source of upside.
- Market Risks and Challenges: Despite ongoing enterprise momentum, Berg warns that AI-related search disruptions and rising costs could hurt gross margins, and there are ongoing debates about whether monday.com's products are truly “mission-critical,” which may pose challenges for its future performance.
See More
Monday.com Stock Declines Ahead of Earnings Report
- Stock Performance: Monday.com (MNDY) fell 2.2% to $75.56 in the latest trading session, underperforming the S&P 500's daily loss of 0.57%, indicating market caution regarding its future outlook.
- Earnings Expectations: The upcoming earnings report is anticipated to show an EPS of $1.14, reflecting a 4.59% year-over-year increase, while revenue is expected to reach $354.95 million, marking an 18.71% rise, which may attract investor interest.
- Analyst Ratings Stability: Despite no changes in the Zacks Consensus EPS estimate over the past 30 days, Monday.com holds a Zacks Rank of #3 (Hold), suggesting analysts maintain a neutral stance on its near-term business trends, reflecting cautious sentiment on profitability.
- Valuation Analysis: Currently trading at a Forward P/E ratio of 17.23, below the industry average of 18.65, indicating relative valuation attractiveness, although a PEG ratio of 1.37, higher than the industry average of 1.05, suggests ongoing market expectations for future growth.
See More
Monday.com Shares Drop 5.4% Amid Earnings Anticipation
- Stock Performance: Monday.com (MNDY) closed at $67.09, down 5.4% from the previous session, underperforming the S&P 500's minimal loss of 0.01%, indicating market concerns regarding its future performance.
- Earnings Expectations: Analysts project the upcoming earnings per share (EPS) to be $1.14, reflecting a 4.59% year-over-year increase, with revenue estimated at $354.95 million, an 18.71% rise, showcasing cautious optimism about the company's growth potential.
- Valuation Analysis: MNDY currently trades at a forward P/E ratio of 15.81, which is below the industry average of 18.07, suggesting lower market expectations for its future profitability, potentially affecting investor confidence.
- Industry Ranking: The Internet Software industry, where Monday.com operates, holds a Zacks Industry Rank of 89, placing it in the top 37% of all industries, indicating strong overall performance, though the company's individual performance remains a point of concern.
See More
Analysis of Stock Sale by monday.com Executive
- Transaction Overview: On June 15, 2026, George James Case, CRO of monday.com, sold 838 ordinary shares for approximately $66,000, resulting in a 45.10% decrease in his direct holdings, highlighting potential liquidity concerns.
- Tax Obligation Impact: The transaction involved exercising 1,858 options, with 838 shares sold immediately to cover tax obligations, while the remaining shares increased his direct ownership, indicating that Case still retains a significant economic interest in the company.
- Market Performance Analysis: Despite monday.com reporting $1.30 billion in revenue and $119.35 million in net income, its stock has plummeted by 76.8% over the past year, reflecting a cautious market outlook on its growth potential, even as it maintains competitive advantages in software solutions.
- Investor Considerations: This mandatory tax sale does not necessarily indicate Case's confidence in the stock; while the company excels in customization and customer support, the ongoing stock price decline may dampen investor sentiment and confidence.
See More
monday.com Executive Sells 838 Shares
- Executive Share Sale: George James Case, the CRO of monday.com, sold 838 ordinary shares on June 15, 2026, for approximately $66,000, representing 45.10% of his direct holdings, which may raise concerns about the company's future prospects in the market.
- Transaction Context: The sale was a mandatory tax transaction, indicating that Case's confidence in the stock remains intact; however, the overall market sentiment towards monday.com remains low, with the stock shedding roughly 70% over the past five years.
- Business Performance and Market Competition: As a leading provider of customizable work management software, monday.com leverages a modular platform strategy to maintain a competitive edge in the global SaaS market, despite facing pressure from Microsoft and Salesforce, its configurability and customer support remain key strengths.
- Future Outlook and Investment Advice: While the company has made progress in improving margins and gaining traction with its CRM and service management products, analysts suggest that investors should be cautious about purchasing monday.com stock until market sentiment improves.
See More
monday.com CRO Sells 838 Shares Amid Market Challenges
- Transaction Overview: On June 15, 2026, George James Case, CRO of monday.com, sold 838 Ordinary Shares for approximately $66,000, as reported in an SEC Form 4 filing, indicating executive actions amidst market volatility.
- Ownership Change: Following the transaction, Case's direct holdings decreased by 45.10%, from 1,858 shares to 1,020 shares, reflecting a significant reduction in his economic interest in the company, which may affect investor confidence.
- Tax Obligation Impact: The sale was executed to meet tax obligations, suggesting that this transaction does not necessarily reflect Case's conviction in the stock, prompting investors to interpret his ownership changes with caution.
- Market Competitive Pressure: Despite monday.com's strong performance in customizable work management software, the stock has dropped approximately 70% over the past five years due to competitive pressures from Microsoft and Salesforce, raising concerns about the company's future growth prospects.
See More
monday.com at the Center of AI Impact Debate Among Investors
- Investor Debate Focus: According to Needham analyst Scott Berg, monday.com (MNDY) is at the center of the debate regarding the impact of artificial intelligence on software, with bearish sentiment amplified by its currently depressed valuation despite a growth rate of approximately 20%.
- Complexity of Customer Use: While some investors believe that lightweight alternatives to monday.com can be easily coded, Berg emphasizes that the complexity and governance required for large-scale use make simple replacements unlikely, which will continue to pressure its stock valuation.
- Growth Potential and Cash Flow: Berg maintains a Buy rating with a $125 price target, noting that monday.com's growth outpaces its software peers and its free cash flow continues to compound, with AI potentially representing a significant source of upside.
- Market Risks and Challenges: Despite ongoing enterprise momentum, Berg warns that AI-related search disruptions and rising costs could hurt gross margins, and there are ongoing debates about whether monday.com's products are truly “mission-critical,” which may pose challenges for its future performance.
See More
Monday.com Stock Declines Ahead of Earnings Report
- Stock Performance: Monday.com (MNDY) fell 2.2% to $75.56 in the latest trading session, underperforming the S&P 500's daily loss of 0.57%, indicating market caution regarding its future outlook.
- Earnings Expectations: The upcoming earnings report is anticipated to show an EPS of $1.14, reflecting a 4.59% year-over-year increase, while revenue is expected to reach $354.95 million, marking an 18.71% rise, which may attract investor interest.
- Analyst Ratings Stability: Despite no changes in the Zacks Consensus EPS estimate over the past 30 days, Monday.com holds a Zacks Rank of #3 (Hold), suggesting analysts maintain a neutral stance on its near-term business trends, reflecting cautious sentiment on profitability.
- Valuation Analysis: Currently trading at a Forward P/E ratio of 17.23, below the industry average of 18.65, indicating relative valuation attractiveness, although a PEG ratio of 1.37, higher than the industry average of 1.05, suggests ongoing market expectations for future growth.
See More
