Work management platform monday.com (NASDAQ: MNDY) announced better-than-expected revenue in Q1 CY2026, with sales up 24.5% year on year to $351.3 million. The company expects next quarter’s revenue to be around $355 million, close to analysts’ estimates. Its non-GAAP profit of $1.15 per share was 23.4% above analysts’ consensus estimates.
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monday.com (MNDY) Q1 CY2026 Highlights:
- Revenue: $351.3 million vs analyst estimates of $339.1 million (24.5% year-on-year growth, 3.6% beat)
- Adjusted EPS: $1.15 vs analyst estimates of $0.93 (23.4% beat)
- Adjusted Operating Income: $49.04 million vs analyst estimates of $38.06 million (14% margin, 28.9% beat)
- The company slightly lifted its revenue guidance for the full year to $1.47 billion at the midpoint from $1.46 billion
- Operating Margin: 5.6%, up from 3.5% in the same quarter last year
- Free Cash Flow Margin: 29.3%, up from 17% in the previous quarter
- Customers: 4,547 customers paying more than $50,000 annually
- Net Revenue Retention Rate: 114%, in line with the previous quarter
- Billings: $396.9 million at quarter end, up 21.6% year on year
- Market Capitalization: $3.66 billion
“Q1 was a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations,” said Eliran Glazer, monday.com CFO.
Company Overview
With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ: MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, monday.com grew its sales at an incredible 47.2% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. monday.com’s annualized revenue growth of 28.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, monday.com reported robust year-on-year revenue growth of 24.5%, and its $351.3 million of revenue topped Wall Street estimates by 3.6%. Company management is currently guiding for a 18.7% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 16.6% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and indicates the market is forecasting some success for its newer products and services.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
monday.com’s billings punched in at $396.9 million in Q1, and over the last four quarters, its growth was impressive as it averaged 22.7% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth. 
Customer Retention
One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.
monday.com’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 115% in Q1. This means monday.com would’ve grown its revenue by 14.5% even if it didn’t win any new customers over the last 12 months.
monday.com has a good net retention rate, proving that customers are satisfied with its software and getting more value from it over time, which is always great to see.
Key Takeaways from monday.com’s Q1 Results
It was encouraging to see monday.com beat analysts’ revenue expectations this quarter. We were also happy its adjusted operating income outperformed Wall Street’s estimates convincingly. Looking ahead, revenue guidance was raised. Overall, this print had some key positives and not many blemishes. The stock traded up 20.9% to $87.28 immediately after reporting.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
