5 Must-Read Analyst Questions From monday.com’s Q2 Earnings Call
monday.com’s second quarter was marked by strong execution of its AI-focused strategy, though the market responded negatively to the results. Management attributed the performance to accelerated adoption of AI products, particularly among large enterprise customers, and highlighted a deliberate shift toward upmarket sales and operational streamlining. Co-CEO Roy Mann noted, “AI products adoption continues to accelerate and customers’ response to our new direction continue to exceed our expectations.” The quarter also included a significant 20% workforce reduction, with most savings directed toward product and AI investments.
Is now the time to buy MNDY? Find out in our full research report (it’s free for active Edge members).
monday.com (MNDY) Q2 CY2026 Highlights:
- Revenue: $364.6 million vs analyst estimates of $355.3 million (21.9% year-on-year growth, 2.6% beat)
- Adjusted EPS: $1.48 vs analyst estimates of $1.11 (32.8% beat)
- Adjusted Operating Income: $61.11 million vs analyst estimates of $47.18 million (16.8% margin, 29.5% beat)
- The company reconfirmed its revenue guidance for the full year of $1.47 billion at the midpoint
- Operating Margin: -0.4%, up from -3.9% in the same quarter last year
- Customers: 4,834 customers paying more than $50,000 annually
- Net Revenue Retention Rate: 113%, down from 114% in the previous quarter
- Annual Recurring Revenue: $1.46 billion (21.9% year-on-year growth, beat)
- Billings: $361.1 million at quarter end, up 13.8% year on year
- Market Capitalization: $3.7 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From monday.com’s Q2 Earnings Call
- Ryan MacWilliams (Wells Fargo) asked about the current demand environment, particularly downmarket softness. Co-CEO Eran Zinman noted strong AI adoption across segments, but acknowledged that demand trends remain largely unchanged from earlier in the year.
- Scott Berg (Needham) inquired about elevated R&D expenses and their sustainability. Co-CEO Eran Zinman replied that high investment in R&D is expected to continue given the company’s transition, but it should not increase significantly as a percentage of revenue moving forward.
- Howard Ma (Guggenheim Securities) pressed on the long-term impact of the new mandatory AI pricing model. Co-CEO Roy Mann responded that while early results are positive, it is too soon to predict full effects on net dollar retention.
- James Wood (TD Cowen) asked about the focus of sales and marketing investments post-restructuring. CFO Eliran Glazer clarified that most savings are being reinvested in AI and product talent, with upmarket sales resources growing despite overall headcount cuts.
- Elizabeth Elliott (Morgan Stanley) questioned the sustainability of double-digit enterprise seat growth and how AI monetization could impact NDR. CFO Eliran Glazer pointed to strong gross retention and ongoing upmarket momentum as offsets to near-term NDR pressure.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be tracking (1) the pace of AI adoption and credit-based consumption among both new and existing enterprise customers, (2) the effectiveness and speed of operational execution following the workforce reduction and restructuring, and (3) the ability of monday.com’s new product segmentation—particularly in CRM and service management—to drive differentiated growth. Additional focus will be on evolving customer retention trends and the rollout of further AI capabilities.
monday.com currently trades at $88.17, down from $93.13 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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