$MNDY · monday.com Ltd.
monday.com reported Q3 FY2026 results: revenue of $377.5M, up 19% YoY, with GAAP operating income of $31.2M (vs a $2.4M loss a year ago) and record non-GAAP operating income of $89.4M at a 24% margin. GAAP diluted EPS was $0.80 and non-GAAP diluted EPS was $2.14. AI ARR reached $36M, and RPOs grew 27% to $946M. Management flagged "near-term operational headwinds" from the AI-first transition, and Q4 guidance of $380-382M implies ~14% growth, a sharp deceleration from Q3's 19%.
- Revenue of $377.5M grew 19% YoY; nine-month revenue was $1,093.4M.
- Non-GAAP operating income hit a record $89.4M at a 24% margin, up from $47.5M and 15% a year ago.
- GAAP diluted EPS was $0.80 vs $0.25 a year ago; non-GAAP diluted EPS was $2.14 vs $1.16.
- AI ARR reached $36M; monday agents passed 6 million interactions in under two quarters.
- Q4 guidance of $380-382M implies ~14% YoY growth, down from Q3's 19%.
Extended-hours last trade of $82.89 is down 5.73% vs the $87.93 regular close, signaling investors are reacting negatively to the Q4 deceleration despite the Q3 beat.
A record-margin quarter paired with a sharp guided deceleration captures the cost of monday.com's AI-first pivot, the key tension investors must price.
The AI-first pivot and decelerating growth echo broader SaaS pressure as vendors trade near-term growth for AI investment, with monday.com's 19% growth still above many peers.
Management cited "near-term operational headwinds" from the AI-first transition and a $9.96M Q3 restructuring charge tied to the 2026 Restructuring Plan. Guidance assumes a 100-200 bps negative FX impact.