monday.com Ltd. (NASDAQ:MNDY) shares soared more than 22% after the company reported first-quarter results that exceeded Wall Street expectations on earnings, revenue and forward guidance.
The AI-focused work management platform posted adjusted earnings per share of $1.15, comfortably ahead of analyst forecasts of $0.95 per share.
Revenue Growth and Profitability Impress Investors
Quarterly revenue reached $351.3 million, topping the consensus estimate of $339.31 million and marking a 24% increase from the same period last year.
The company also reported record levels of both adjusted operating income and GAAP operating income during the quarter.
Adjusted operating income rose to $49.0 million from $40.8 million in the first quarter of 2025, representing a 14% adjusted operating margin.
GAAP operating income increased to $19.8 million compared with $9.8 million a year earlier.
Company Issues Stronger Revenue Guidance
Investor sentiment was further boosted by stronger-than-expected guidance for both the current quarter and the full year.
For the second quarter, monday.com forecast revenue between $354 million and $356 million, with the midpoint slightly above analyst expectations of $354.2 million.
For full-year 2026, the company projected revenue of between $1.466 billion and $1.474 billion. The midpoint of $1.470 billion exceeded the market consensus estimate of $1.458 billion.
“The results we delivered in Q1 reflect a business that is executing with discipline and building with ambition at the same time,” said co-founders and co-CEOs Roy Mann and Eran Zinman. “The launch of the AI Work Platform and our shift to consumption-based pricing build directly on that momentum.”
Enterprise Customer Growth Continues to Accelerate
monday.com also reported strong momentum among larger enterprise customers.
The number of customers generating more than $500,000 in annual recurring revenue climbed to 99, up 74% from 57 a year earlier.
Customers with more than $100,000 in annual recurring revenue increased 39% to 1,844, while customers contributing more than $50,000 in ARR rose 32% to 4,547.
The company’s net dollar retention rate stood at 110%, with retention among larger enterprise clients reaching 116% for customers generating more than $50,000 in ARR.