Shares of Monday.com plunged 8.4% to $85.28 after the work-management software company paired a strong second quarter with a third-quarter revenue outlook that fell short of what Wall Street expected — raising a pointed question about whether the company's rapid growth phase is winding down faster than bulls anticipated. Monday.com's Strong Quarter Collides With a Weak Outlook — Can AI Momentum Offset a Decelerating Growth Engine?
Shares of Monday.com tumbled 8.4% to $85.28 after the work-management software maker delivered a blowout second quarter but guided third-quarter revenue below Wall Street expectations — a mismatch that forced investors to reckon with a simple question: is the company's best growth already behind it?
• The Numbers Were Great, but the Forecast Stole the Show. Monday.com reported Q2 earnings of $1.48 per share, crushing the $1.11 analyst estimate, on revenue of $364.6 million versus the $355.6 million consensus. Yet management guided Q3 revenue to just $368–$370 million, below the $372.8 million Wall Street expected.
That implies growth of only 16%–17%, a sharp step down from 22% in Q2 , telling investors the company is hitting a harder ceiling on new customer and expansion revenue right as they were betting on acceleration.
• AI Products Are Growing Fast — But Not Fast Enough to Fill the Gap. Monday.com's AI-related annual recurring revenue (the yearly value of its AI subscription contracts) doubled since Q1 and now accounts for 17% of net new recurring revenue. That's impressive, but it also means the remaining 83% of new business is slowing. Customers spending more than $100,000 annually grew 37% , signaling enterprise traction, yet the cautious forecast suggests management isn't confident that momentum will translate quickly into top-line dollars.
• Cash Is Leaving the Building. Cash generation moved against the earnings trend: operating cash flow fell to $55.4 million, hurt partly by a $30.8 million outflow from prepaid expenses.
More critically, the company spent $735 million on share buybacks in the first half of 2026, exhausting its entire $870 million repurchase program. With that buyback cushion gone, future earnings-per-share growth must come from actual business performance, not financial engineering.
• The Stock Already Priced In a Turnaround — and Didn't Get One. Options had priced a 23.4% move around earnings — the widest for any single stock this week — on a name that swung between $264 and $57.50 over the past year.
The 25-analyst consensus still carries a $108.13 average price target , implying meaningful upside, but that figure will likely face downward revisions now that the growth trajectory has explicitly softened. Record non-GAAP operating income of $61.1 million at a 17% margin shows the business is profitable — the debate is whether profitability alone justifies the premium when growth is fading.