monday com Q1 2026 Results Highlight AI Push as Enterprise Momentum Accelerates

monday.com (NASDAQ: MNDY) delivered a strong start to fiscal 2026, reporting solid revenue growth, record profitability, and accelerating enterprise customer adoption as the company deepens its focus on artificial intelligence (AI).

Revenue Growth and Profitability Improve

The company reported first-quarter revenue of $351.3 million, up 24% year-over-year, while posting record GAAP and non-GAAP operating income.

GAAP gross profit grew 23.6% year over year to $313.1 million, despite a slight dip in gross margin to 89% (from 90% the previous year).

GAAP sales and marketing expenses were $165.4 million, up 16.7% year over year. Research and development expenses increased 32.6% year over year to $92 million. General and administrative expenses were $36 million during the quarter.

GAAP operating income reached $19.8 million, compared with $9.8 million in the same period last year, while non-GAAP operating income increased to $49 million. Non-GAAP operating margin remained at 14% despite foreign exchange headwinds.

Net income totaled $28 million on a GAAP basis, while non-GAAP net income came in at $56 million. GAAP diluted net income per share was $0.57, with non-GAAP diluted EPS of $1.15.

Net cash provided by operating activities was $104.7 million, with $102.8 million of adjusted free cash flow.

The AI Work Platform

Management emphasized that the company is entering a new phase centered around AI-native work management. During the quarter, monday com launched its AI Work Platform featuring native AI agents and introduced a new consumption-based pricing structure designed to scale alongside customer AI usage.

Co-founders and co-CEOs Roy Mann and Eran Zinman said the platform expansion reflects the company’s belief that AI will increasingly handle operational work inside organizations, allowing monday com to deepen customer engagement while expanding monetization opportunities. The company also agreed to acquire OneAI to expand voice-agent capabilities within the platform.

Enterprise Customer Growth Accelerates

One of the most notable trends in the quarter was accelerating growth among large enterprise customers.

The number of paid customers generating more than $500,000 in annual recurring revenue (ARR) surged 74% year-over-year to 99 customers. Customers with more than $100,000 in ARR climbed 39%, while customers with more than $50,000 in ARR increased 32%.

Meanwhile, total remaining performance obligations (RPOs) rose 33% year-over-year to $880 million, while current remaining performance obligations (cRPOs) were $716 million, up 26% year over year.

Share Repurchases Reduce Cash Balance

During the quarter, monday com repurchased approximately 7.27 million shares for roughly $553 million under its existing buyback authorization program.

The aggressive repurchase activity reduced cash and cash equivalents to $997.1 million from $1.53 billion a year earlier, though the company still maintains a strong balance sheet with substantial liquidity.

Approximately $182 million remains available under the current repurchase authorization.

Outlook Remains Solid Despite FX Pressure

For the second quarter, monday com expects revenue between $354 million and $356 million, representing annual growth of 18% to 19%, with non-GAAP operating income of $46 million to $48 million and operating margin of 13% to 14%.

For full-year fiscal 2026, the company projects revenue of $1.466 billion to $1.474 billion, implying annual growth of 19% to 20%, with non-GAAP operating income of $185 million to $191 million and operating margin of approximately 13%. Management also expects full-year adjusted free cash flow between $280 million and $290 million.

The outlook assumes a negative foreign exchange impact of approximately 100 to 200 basis points.

MNDY Stock Technical Analysis

Despite the company’s strong operational execution and AI-driven growth narrative, MNDY stock continues to struggle to establish a clear directional trend in the market.

In the short term, the key resistance level sits near $94. A sustained breakout above that level could open the door toward the next major resistance zone around $116. However, if shares fail to hold current levels, the stock may revisit the major support level near $58.

From a medium-term perspective, the next significant resistance level stands around $169, while the longer-term resistance target remains near $213.