Monday.com (NASDAQ:MNDY) shares sank more than 12% in premarket trading after the AI-powered work management platform issued fiscal 2026 revenue guidance that came in below market expectations, overshadowing a stronger-than-expected fourth quarter.
For the fourth quarter, the company reported adjusted earnings of $1.04 per share, topping analyst forecasts of $0.92. Revenue rose 25% year over year to $333.9 million, also beating the $329.51 million consensus estimate. Investor sentiment, however, turned negative after Monday.com projected fiscal 2026 revenue of $1.452 billion to $1.462 billion, short of analysts’ expectations of about $1.48 billion.
Looking to the first quarter of fiscal 2026, the company expects revenue in the range of $338 million to $340 million, implying roughly 20% year-over-year growth, alongside a non-GAAP operating margin of 11% to 12%.
“We delivered another year of strong, disciplined execution in 2025, with 27% revenue growth and a 14% non-GAAP operating margin, while expanding our product portfolio and seeing strong adoption of our AI products,” said Monday.com co-founders and co-CEOs Roy Mann and Eran Zinman.
Momentum with larger customers continued, with the number of clients generating more than $100,000 in annual recurring revenue (ARR) rising 45% to 1,756. Customers with ARR above $50,000 now account for 41% of total ARR, up from 36% a year earlier.
The company reported a net dollar retention rate of 110%, increasing to 116% among customers with more than $50,000 in ARR. It also highlighted that its monday vibe product became the fastest offering in the firm’s history to surpass $1 million in ARR.
Despite the solid operational performance, Monday.com flagged near-term margin pressure from foreign exchange movements. For fiscal 2026, the company expects a non-GAAP operating margin of 11% to 12%, assuming a negative FX impact of 100 to 200 basis points.