monday.com (MNDY) Q2 2026 Earnings Call Transcript
monday.com Ltd. (MNDY) reported Q2 FY2026 revenue of $364.6M, up 22% YoY, with AI ARR doubling and representing 17% of net new ARR. Total ARR reached $1.5B in July. Non-GAAP operating income was $61.1M and diluted EPS $1.48. Q3 revenue guidance is $368M to $370M; FY2026 revenue $1.466B to $1.474B. The company also cut headcount by 20% and completed a $182M share repurchase.
How this was made
The 30-second read
Why it matters
Key decision inputs are the Q3 revenue range, full-year revenue and free cash flow guidance, and the stated risk of modest NDR pressure in the back half of FY2026.
Market read
Traders can reprice MNDY based on fresh guidance ranges, AI ARR contribution, and explicit risk framing around NDR and workforce-reduction execution.
What to watch
Remaining performance obligations jumped to $937M (+34% YoY), but the article also notes RPO growth and cash decline tied to buybacks, so traders may scrutinize cash conversion and execution of the workforce reduction.
Background
The call describes monday.com’s strategic shift to an AI-driven workspace, including a 20% workforce reduction and a new seat and credit pricing model for AI consumption.
Ticker impact
monday.com reported Q2 FY2026 results and guided Q3 revenue to $368M-$370M, plus full-year revenue $1.466B-$1.474B.
Near-term bias likely positive on AI ARR and margin expansion, but traders may discount upside if NDR pressure and workforce-reduction execution risk dominate.
The article provides concrete earnings metrics (revenue, ARR, NDR, margin), explicit Q3 and FY guidance ranges, and specific risk language about possible NDR modest pressure and workforce-reduction uncertainty.
Market effects
Reinforces the SaaS/work-management peer narrative that AI add-ons can drive incremental ARR and retention, while cost actions and FX can swing margins.
Israeli shekel appreciation is cited as a 100-200 bps drag on operating margin guidance, highlighting FX sensitivity for Israel-linked SaaS costs.
AI monetization and enterprise expansion metrics may influence broader sentiment toward AI-enabled productivity software demand.
Counterpoint
AI ARR share rising may not fully translate into durable NDR if pricing actions are lapped and AI consumption monetization faces adoption friction.
Key entities
- companymonday.com Ltd.
Reported Q2 FY2026 results, AI ARR growth, and provided Q3 and full-year 2026 guidance alongside workforce reduction and FX margin headwinds.
- executiveRoy Mann
Co-CEO who highlighted crossing $1.5B ARR in July and the durability of the core business through the AI reshape.
- executiveEliran Glazer
CFO who discussed margin impacts (including FX) and potential modest NDR pressure risk as pricing actions are lapped.
