Monday.com Q2 Results Climb, Sees Growth In Q3, Backs FY26 Outlook; Stock Drops - Update
monday.com Ltd. (MNDY) reported Q2 net earnings of $3.46M ($0.08/share) versus $1.57M ($0.03) a year earlier, and revenue up 22% to $364.62M. Adjusted EPS was $1.48. For Q3, it expects revenue of $368M to $370M and adjusted operating income $57M to $59M. FY26 revenue outlook remains $1.466B to $1.474B. Shares fell about 12% premarket.
How this was made
The 30-second read
Why it matters
Traders can update models using the provided Q3 revenue and adjusted operating income ranges and reassess FY26 growth and margin assumptions, but the magnitude of the premarket decline signals expectations may have been higher than the guidance implies.
Market read
Q2 profitability and revenue growth were accompanied by positive forward guidance, yet the stock is down sharply premarket, indicating a potential expectation gap.
What to watch
The article notes an FX tailwind (about 110 bps) and provides margin targets near 16%, which may be the key swing factor if investors expected stronger operating leverage.
Background
The piece summarizes monday.com’s Q2 performance and management’s Q3 and FY26 outlook, alongside the immediate Nasdaq premarket selloff.
Ticker impact
monday.com reported Q2 results and guided Q3 revenue to $368M-$370M, plus FY26 revenue $1.466B-$1.474B, while shares fell premarket ~12%.
Near-term volatility likely as traders weigh upside guidance against the immediate negative reaction.
The article provides both Q2 beats (profit, adjusted operating income, revenue growth) and explicit Q3/FY26 outlook, yet the premarket move is sharply negative, implying expectations were higher or other details (not provided here) disappointed.
Market effects
Reinforces demand durability for enterprise AI/work management software, but the negative reaction highlights valuation sensitivity to guidance quality.
Primarily US-listed growth-stock sentiment via Nasdaq trading reaction.
Limited direct global spillover beyond software growth expectations.
Counterpoint
The guidance could be broadly fine, but the market may be reacting to margin trajectory or FX/operating leverage details not captured in this excerpt.
Key entities
- public_companymonday.com Ltd.
AI work platform company reporting Q2 results and issuing Q3 and FY26 guidance.
