Abstract
Monday.com Ltd. is scheduled to report quarterly results on August 10, 2026 Pre-MKt; this preview synthesizes the latest actuals, current-quarter forecasts, and recent institutional commentary to frame revenue, profitability, and execution themes that are likely to dominate investor attention.
Market Forecast
Consensus for the current quarter points to revenue of 355.26 million US dollars, up 21.03% year over year, with adjusted EPS expected at 1.11 and EBIT at 47.24 million US dollars, implying year-over-year growth of 29.80% and 41.14%, respectively. Based on the company’s prior report, Monday.com Ltd. guided second-quarter revenue to a range of 354.00–356.00 million US dollars; there is no formal company outlook for gross margin, net profit, or net margin for this quarter published alongside that guidance, so this preview references market estimates for profit metrics.
The core business outlook centers on continued expansion of seats and multi-product adoption across the Work OS suite, with management reinforcing a focus on efficiency and scaled monetization that drove the last quarter’s revenue and EBIT beat. The most promising vector highlighted in recent updates is the AI Work Platform and enterprise expansion agenda, which is expected to reinforce ARPU and upsell momentum; quantitative revenue and year-over-year growth by this sub-segment are not separately guided and thus are not included.
Last Quarter Review
In the prior quarter, Monday.com Ltd. delivered revenue of 351.27 million US dollars (+24.45% year over year), a gross profit margin of 89.15%, GAAP net profit attributable to shareholders of 28.03 million US dollars with a net profit margin of 7.98%, and adjusted EPS of 1.15 (+4.55% year over year).
A key financial highlight was the EBIT outperformance at 49.04 million US dollars (+20.32% year over year), alongside an upward revision to the company’s 2026 revenue outlook, which strengthened confidence in the profitability trajectory. Revenue growth of 24.45% year over year was driven by broad-based subscription expansion and stronger enterprise penetration, while the sequential net profit change reflected timing effects captured in the company’s quarterly cadence.
Current Quarter Outlook
Core subscription and expansion execution
The central driver for this quarter remains net expansion within the existing customer base, measured through seat growth, cross-sell into adjacent modules, and sustained adoption of the Work OS building blocks. The revenue guide of 354.00–356.00 million US dollars is consistent with typical seasonal patterns and aligns with consensus at 355.26 million US dollars, implying a 21.03% year-over-year increase. Management’s consistent emphasis on improving unit economics suggests that gross margin will likely remain structurally high, though no formal gross margin target was provided for the quarter; the previous quarter’s 89.15% gross margin offers a solid starting point for modeling.
Adjusted EPS of 1.11 implies that operating leverage remains a key part of the story; consensus EBIT at 47.24 million US dollars points to 41.14% year-over-year growth in operating profit despite a deceleration in top-line growth versus the prior quarter. The durability of seat expansion and consistent conversion from trials to paid plans are important for maintaining mid-20% style growth over a multi-quarter horizon; investors will look for evidence of healthy net revenue retention and lower churn among larger cohorts. Price and packaging refinements, together with workflow templates that reduce time-to-value, are expected to support sustained ARPU uplift without impairing new logo velocity.
The most sensitive watch-items within the core are new enterprise logo adds and the balance between new logo growth and expansion in existing customers; a leaner go-to-market model that improves sales productivity could translate into steadier pipeline generation and better deal closure. Given that last quarter’s revenue outpaced estimates, the market is primed for stable execution; any shortfall in net new ARR, especially within higher-value tiers, would weigh on sentiment more than small fluctuations in lower-tier self-serve cohorts. Finally, billings and current remaining performance obligations will be closely parsed as leading indicators of second-half demand and the sustainability of mid-teens to low-20s growth over the year.
AI Work Platform and enterprise-tier monetization
The AI Work Platform is positioned to amplify the value of Monday.com Ltd.’s modular architecture by automating routine tasks, enabling AI-assisted workflows, and augmenting cross-product usage that deepens account stickiness. The company’s recent decision to streamline its organization around the AI Work Platform underscores a more focused product roadmap and a faster cadence for AI feature delivery; investors are likely to assess early monetization signals through adoption rates within enterprise tiers. While the company has not provided stand-alone AI revenue, indicators such as a reported surge in large customer metrics earlier this year demonstrate the role of high-value cohorts in pushing blended ARPU upward.
On the profitability side, management communicated a plan that includes a roughly 20% workforce reduction to reallocate resources toward the AI Work Platform, while maintaining full-year growth expectations in the high-teens to 20% range and lifting the 2026 non-GAAP operating margin outlook to about 15%. Most restructuring charges are expected to be recognized in the second half; therefore, any short-term GAAP noise should have limited bearing on the current quarter’s adjusted metrics, but investors will watch for commentary on go-to-market coverage and product delivery continuity. If the AI feature set continues to unlock incremental seats and cross-product adoption in enterprise accounts without sacrificing win rates or deal cycles, this could catalyze sustained margin expansion while supporting growth around the guided range.
Enterprise adoption remains particularly important this quarter because it has an outsized impact on both revenue quality and medium-term profitability. Meaningful expansion within larger customers raises the mix of annual contracts and multi-product bundles, which tends to compress payback periods and enhance visibility. Key qualitative markers to listen for on the call include evidence of AI-assisted workflow usage within top cohorts, attach rates for complementary modules, and early case studies that can be scaled across the customer base; together, these datapoints would validate the thesis that AI augments the Work OS, lifts engagement, and supports the revenue guide with a healthier margin profile in the mid-term.
What could swing the stock this quarter
The first swing factor is top-line execution relative to the narrow revenue guide: a result near the high end of the 354.00–356.00 million US dollars range, coupled with reiteration of the full-year growth outlook, would likely be taken as confirmation that demand is tracking well despite a more selective spend environment at large customers. Given consensus EBIT of 47.24 million US dollars, an EBIT beat paired with clean expense discipline would validate market expectations for continued operating leverage; however, commentary that ties second-half costs to AI platform acceleration could temper immediate margin upside as the company invests into momentum. Adjusted EPS outcomes close to the 1.11 figure, if delivered with constructive second-half commentary, could help reduce volatility around valuation debate.
The second swing factor is guidance quality and specificity. Investors will look for crisp commentary on second-half revenue cadence given the expected timing of restructuring charges, and how these actions translate into execution speed and feature shipping within the AI Work Platform. Clear reconciliation between GAAP and non-GAAP views—especially if any one-time items are present—will be important for setting expectations for the December quarter and beyond. Any update to the 2026 revenue outlook band and non-GAAP operating margin trajectory will also influence the multiple investors are willing to pay, particularly if management outlines tangible milestones for AI-led monetization or partner-led distribution that enhance visibility.
The third swing factor is the health of enterprise demand. Metrics often scrutinized include net new enterprise logos, expansions within existing large accounts, and any shifts in win rates or deal durations. A consistent message on low churn in the upper tiers, combined with evidence of healthy expansion and strong attach rates for advanced modules, tends to correlate with steadier growth at an attractive margin. Billings and current remaining performance obligations can provide early signals about the back half; positive momentum here would bolster confidence that the revenue growth profile can sustain around the 20% mark even as the company optimizes its cost base around AI priorities.
Analyst Opinions
The balance of institutional commentary over the last six months skews bullish when considering Buy/Overweight recommendations versus bearish calls, with bullish ratings outnumbering negative stances while neutral/Hold ratings constitute the remainder. Analysts at Morgan Stanley, led by Josh Baer, maintained a Buy view, highlighting the company’s consistent revenue execution and the improving path to profitability as operational efficiency increases; the firm’s stance implies confidence that the company can meet or exceed the second-quarter revenue guide and approach the consensus EBIT of 47.24 million US dollars without compromising growth. Barclays, with coverage by Raimo Lenschow, also kept a Buy rating, emphasizing the durability of the Work OS monetization model and the earnings power from disciplined expense management; this perspective indicates that consistent revenue growth near 21.03% year over year combined with an expanding non-GAAP margin could support continued multiple resilience. Tigress Financial reaffirmed its Buy view even after moderating its price target, citing conviction in the multi-year potential of the product suite and the strategic pivot to AI as a lever for both growth and margins.
From these bullish perspectives, several analytical threads emerge for the current quarter. First, there is broad agreement that the narrow revenue guide provides a high-visibility benchmark; delivering within or above 354.00–356.00 million US dollars would reinforce the recurring-revenue engine’s consistency. Second, profitability is seen as a critical proof point: reaching or beating the 47.24 million US dollars EBIT estimate while keeping adjusted EPS near 1.11 would validate management’s commentary on operating leverage and efficiency gains. Third, analysts are focused on the practical monetization of AI: the restructuring signals a sharper focus on AI Work Platform execution, and investors will expect anecdotes and metrics that connect new AI capabilities to higher ARPU and seat growth, particularly in the enterprise tier.
The bullish camp also highlights that the company’s previously raised 2026 revenue outlook and the lifted non-GAAP operating margin framework (about 15%) suggest a pathway to healthy profit expansion even as the company invests in product velocity. In their view, the strategic reallocation of resources can accelerate feature delivery and consolidate the platform’s value proposition, making it easier to land and expand within complex organizations. This outlook presumes that any near-term GAAP noise related to restructuring remains mostly a second-half phenomenon and that it will not dilute the adjusted metrics that the market uses to assess core performance this quarter.
Moreover, bullish analysts expect that the company’s customer composition—particularly the growth of larger cohorts—will remain favorable for both revenue and profitability. Indicators such as stronger attach rates to advanced modules, sustained seat growth in enterprise plans, and rising engagement with AI-powered workflows are seen as mechanisms to support robust net expansion rates. If management’s call commentary confirms healthy pipeline conversion and stable win rates, and if billings/current remaining performance obligations are constructive, the positive bias among Buy-rated analysts is likely to remain intact.
In contrast, there have been neutral views from firms that prefer to see more evidence of AI monetization at scale and a steadier macro backdrop for enterprise software purchases. These perspectives generally point to valuation sensitivity around high-growth software names and seek further proof that new AI features translate into measurable revenue uplift rather than mere engagement gains. However, with Buy/Overweight ratings representing the majority among non-neutral stances in the recent period, the overall institutional tone tilts positive heading into the print.
Pulling these viewpoints together, the bullish narrative for the current quarter is anchored in three deliverables. Deliverable one is a clean revenue outcome at or slightly above the top end of the 354.00–356.00 million US dollars range and a reiteration of the full-year revenue growth framework. Deliverable two is disciplined expense control yielding EBIT near or better than 47.24 million US dollars and adjusted EPS about 1.11, signifying continued operating leverage. Deliverable three is tangible progress on the AI Work Platform, evidenced by customer adoption anecdotes and signals that AI-led features are enhancing ARPU and seat expansion, laying groundwork for sustained growth and margin improvement into the back half of the year and through 2026.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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