Monday.com Lowers 2026 Revenue Guidance
What happened
Project management software company Monday.com issued 2026 revenue guidance that was significantly below its previous outlook. The company also withdrew its long-term financial targets. The disclosure has triggered an investigation into the company for potential violations of federal securities laws.
Why it matters
- The revised 2026 revenue forecast is projected to be between $1.452 billion and $1.462 billion, falling short of the consensus revenue estimate of $1.48 billion. This represents a significant slowdown in growth to 18-19%, down from 27% in 2025. - In addition to lowering guidance, the company completely withdrew its long-term financial targets for 2027, citing macroeconomic uncertainty, the evolving AI landscape, and a shift in the business. - The law firm Levi & Korsinsky, LLP, has launched an investigation into whether Monday.com violated federal securities laws by failing to adequately disclose known headwinds before announcing the revised guidance. - Company executives attributed the lowered forecast to a "choppy" and deteriorating demand environment in its "no-touch" self-serve channels for smaller customers, which it no longer expects to rebound in 2026. - Negative foreign exchange pressure from the strengthening Israeli shekel is expected to create a 100-200 basis point drag on both operating and free cash flow margins. - Following the announcement, Monday.com's shares plummeted over 20%, hitting a 52-week low. Several analyst firms, including Baird and Loop Capital, downgraded the stock, while others like Canaccord Genuity significantly lowered their price targets. - The company is also increasing investments in AI products like "Sidekick" and "vibe," leading to higher research and development spending and a projected decline in gross margins. - Despite the negative outlook, the company highlighted strong performance in its enterprise segment, with customers paying over $50,000 in annual recurring revenue (ARR) now accounting for 41% of total ARR.
Key numbers
- Project management software company Monday.com issued 2026 revenue guidance that was significantly below its previous outlook.
- - The revised 2026 revenue forecast is projected to be between $1.452 billion and $1.462 billion, falling short of the consensus revenue estimate of $1.48 billion.
- This represents a significant slowdown in growth to 18-19%, down from 27% in 2025.
- In addition to lowering guidance, the company completely withdrew its long-term financial targets for 2027, citing macroeconomic uncertainty, the evolving AI landscape, and a shift in the business.
What happens next
- In addition to lowering guidance, the company completely withdrew its long-term financial targets for 2027, citing macroeconomic uncertainty, the evolving AI landscape, and a shift in the business.
- Company executives attributed the lowered forecast to a "choppy" and deteriorating demand environment in its "no-touch" self-serve channels for smaller customers, which it no longer expects to rebound in 2026.
- Negative foreign exchange pressure from the strengthening Israeli shekel is expected to create a 100-200 basis point drag on both operating and free cash flow margins.
Quick answers
What happened in Monday.com Lowers 2026 Revenue Guidance?
Project management software company Monday.com issued 2026 revenue guidance that was significantly below its previous outlook. The company also withdrew its long-term financial targets. The disclosure has triggered an investigation into the company for potential violations of federal securities laws.
Why does Monday.com Lowers 2026 Revenue Guidance matter?
The revised 2026 revenue forecast is projected to be between $1.452 billion and $1.462 billion, falling short of the consensus revenue estimate of $1.48 billion. This represents a significant slowdown in growth to 18-19%, down from 27% in 2025. In addition to lowering guidance, the company completely withdrew its long-term financial targets for 2027, citing macroeconomic uncertainty, the evolving AI landscape, and a shift in the business. The law firm Levi & Korsinsky, LLP, has launched an investigation into whether Monday.com violated federal securities laws by failing to adequately disclose known headwinds before announcing the revised guidance. Company executives attributed the lowered forecast to a "choppy" and deteriorating demand environment in its "no-touch" self-serve channels for smaller customers, which it no longer expects to rebound in 2026. Negative foreign exchange pressure from the strengthening Israeli shekel is expected to create a 100-200 basis point drag on both operating and free cash flow margins. Following the announcement, Monday.com's shares plummeted over 20%, hitting a 52-week low. Several analyst firms, including Baird and Loop Capital, downgraded the stock, while others like Canaccord Genuity significantly lowered their price targets. The company is also increasing investments in AI products like "Sidekick" and "vibe," leading to higher research and development spending and a projected decline in gross margins. Despite the negative outlook, the company highlighted strong performance in its enterprise segment, with customers paying over $50,000 in annual recurring revenue (ARR) now accounting for 41% of total ARR.
