Abstract

Monday.com Ltd. will report quarterly results on May 11, 2026 Pre-Market; investors are watching for continued double-digit revenue growth, disciplined margin execution, and updated commentary on AI monetization after a guidance reset earlier this year.

Market Forecast

Consensus anticipates Monday.com Ltd.’s current-quarter revenue at 339.46 million US dollars, up 23.09% year over year, with adjusted EPS of 0.93, up 32.51% year over year, and EBIT of 38.17 million US dollars, up 43.69% year over year. Forecasts for gross margin and net margin are not disclosed in the current consensus set, but the last reported gross margin was 88.82% and net margin was 22.97%, providing a high-margin baseline heading into this print. The core Work OS subscription engine remains the primary driver, with cross-sell progress and larger-customer expansion expected to underpin growth despite a more measured near-term outlook. The most promising monetization vector is the expanding multi-product cohort, which posted sales growth of 74.00% year over year in the latest management commentary during the covered period; with last quarter’s revenue at 333.88 million US dollars, this cohort’s expansion sits on a larger revenue base and is increasingly relevant to total growth.

Last Quarter Review

Monday.com Ltd. delivered revenue of 333.88 million US dollars, up 24.59% year over year, with a gross profit margin of 88.82%, GAAP net profit attributable to the parent company of 76.69 million US dollars, a net profit margin of 22.97%, and adjusted EPS of 1.04, down 3.70% year over year. A notable financial highlight was broad-based outperformance versus consensus: adjusted EPS exceeded estimates by 0.12, revenue by 4.24 million US dollars, and EBIT by 4.79 million US dollars. Operationally, total revenue growth of 24.59% year over year to 333.88 million US dollars was supported by steady core Work OS demand and accelerating multi-product adoption, with the latter highlighted by a 74.00% year-over-year increase in sales for users adopting multiple products during the period referenced in recent commentary.

Current Quarter Outlook

Core subscriptions and expansion within accounts

The core subscription business is set to remain the central engine of growth this quarter, with consensus revenue of 339.46 million US dollars implying 23.09% year-over-year growth. The last print’s 88.82% gross margin and 22.97% net margin frame a high-margin operating model in which incremental growth can translate efficiently into earnings, provided operating expense growth remains disciplined. Adjusted EPS is expected at 0.93, up 32.51% year over year, reflecting both operating leverage and tighter expense control after the guidance reset earlier in the year. The near-term debate focuses on the durability of expansion within larger accounts and the pace of seat growth. Commentary during the covered period pointed to resilient demand from enterprise customers and stronger adoption among accounts using multiple products, which together suggest a constructive mix shift. Execution risks remain around renewal cycles and incremental seat additions, but the current consensus implies solid net expansion that builds on last quarter’s 24.59% top-line growth. Looking at profitability, the prior quarter’s EBIT of 41.93 million US dollars rose 4.14% year over year, while this quarter’s EBIT is forecast at 38.17 million US dollars, up 43.69% year over year. The mix of investments in product, AI features, and go-to-market can influence the quarter’s margin cadence, yet consensus still embeds meaningful operating improvement on a year-over-year basis.

AI and automation products

Recent product updates underscore the company’s progress in AI enablement, including new infrastructure announced on March 11, 2026 that allows AI agents to authenticate and operate within the platform. This creates a path to deeper workflow automation, increased attach of AI features, and potential seat expansion as organizations scale use cases beyond individual teams. While the near-term revenue contribution may be modest, the framework broadens future monetization vectors—ranging from premium AI feature bundles to agent-based workflows. Near-term metrics to watch include the attach rate of AI functionality within new and existing accounts, paid conversion for advanced AI capabilities, and any early indicators of improved win rates or expansion driven by AI-enabled workflows. Because consensus does not include explicit gross or net margin forecasts, investors will likely infer AI monetization progress from qualitative guidance and from any disclosed adoption metrics during the call. If management links AI adoption to upsell success or price-mix improvements, that could provide upside to the consensus EPS of 0.93 and EBIT of 38.17 million US dollars. Given the incremental nature of AI monetization, it is reasonable to expect revenue benefits to scale over multiple quarters. The key this quarter is whether management can demonstrate that AI features are driving higher-value deals and reducing friction in complex deployments—signals that would support a sustained expansion thesis even as the company moderates growth investments to protect margins.

Key stock-price drivers this quarter

Three variables are likely to drive the stock reaction. First, top-line growth versus the 23.09% consensus: a material beat on revenue or a reaffirmation of mid-20s growth with constructive commentary on enterprise demand could support multiple stability, while any signs of deceleration versus the recent 24.59% growth pace may pressure sentiment. Second, margin commentary: with last quarter’s gross margin at 88.82% and net margin at 22.97%, investors will focus on whether efficiency gains persist alongside product investment—especially given the 32.51% expected increase in adjusted EPS. Third, forward guidance and tone: management’s earlier cautious outlook for 2026 reset expectations, so clarity on pipeline quality, multi-product adoption trends, and AI monetization pathways will be crucial in shaping the near-term trajectory. Positioning into the print also matters. Shares experienced notable volatility after early-year estimate resets and analyst downgrades, followed by a rebound in late April to early May. That backdrop means incremental datapoints—for example, commentary around the adoption of multi-product bundles and early traction of AI agents—can have an outsized effect on sentiment, particularly if they suggest re-acceleration drivers into the second half of 2026. Finally, the relationship between EBIT and EPS will be scrutinized. Consensus expects EBIT of 38.17 million US dollars and EPS of 0.93, both up significantly year over year, implying continued operating leverage. Any upside surprises on operating expense productivity, sales efficiency, or the pace of AI-driven monetization could translate directly into better-than-expected profitability, while heavier reinvestment could cap near-term EPS but strengthen the growth runway.

Analyst Opinions

Recent analyst views during the covered period skew cautious. Among the prominent updates since January 2026, downgrades to neutral or hold outnumber positive reiterations. Notably, Loop Capital cut its rating to Hold on February 11, 2026, and reduced its price target to 80.00 US dollars from 195.00 US dollars, flagging a reset in growth and margin expectations. Jefferies followed by downgrading to Hold and cutting its price target to 80.00 US dollars from 260.00 US dollars on February 23, 2026, citing a softer near-term outlook and the need to see clearer catalysts for re-acceleration. Piper Sandler downgraded to Neutral on April 14, 2026, and trimmed its price target to 85.00 US dollars from 100.00 US dollars, emphasizing the importance of tangible evidence that cross-sell momentum and AI monetization can offset normalizing growth. In aggregate, bearish-to-bullish commentary during this window is roughly three-to-one in favor of the cautious side. The key themes across these firms are consistent: a preference for more proof points on multi-product expansion translating into revenue acceleration, a desire for sustained improvements in operating efficiency beyond a single quarter, and a wait-and-see stance on the size and timing of AI’s revenue contribution. The downgrades indicate that, while the long-term product roadmap is acknowledged, near-term execution—particularly guidance credibility and consistency—has become the gating factor for multiple expansion. From a tactical perspective for the upcoming report on May 11, 2026, analysts with cautious views will scrutinize whether the company can maintain revenue growth at or above the 23.09% consensus while defending high gross margins near the last reported 88.82%. They will also parse disclosures for evidence that enterprise expansion remains healthy following the earlier guidance reset—especially signals that larger accounts are adding seats and adopting more modules. In their view, confirmation that AI agents, automation tools, and multi-product packages are translating to measurable attach and pricing lift would be necessary to shift sentiment more positively. Price action this year underscores the sensitivity to guidance tone and incremental datapoints. Shares fell sharply after the guidance reset earlier in the year and on subsequent downgrades, including the Jefferies action on February 23, 2026, and saw another intraday drawdown on April 23, 2026. A rebound into early May suggests expectations may now be more balanced heading into the print, but the majority of institutional commentary is still framed by the need for greater visibility into growth durability and monetization of new products. For that reason, the majority view remains cautious: a clean quarter with at least in-line revenue, reaffirmed growth durability, and visible progress on multi-product and AI monetization would be the most direct path to improving the sentiment skew reflected in recent rating actions.