Key Highlights

  • Shares of monday.com (NASDAQ:MNDY) dropped roughly 7% on November 9, 2026, and intraday estimates put the decline between 5% and 9% following the quarterly release.
  • Revenue for the quarter climbed 19%, reaching USD 377.5 million and surpassing the USD 369.2 million consensus, while adjusted EPS came in at USD 2.14.
  • The coming quarter's guidance, USD 380 million through USD 382 million, works out to growth near 14%, below the USD 385.7 million analysts had penciled in.
  • Net dollar retention slid to 108% and should reach 107% by the end of the year, a sign that current customers are widening their purchases more slowly.

Solid Third Quarter Figures

Looking only at the quarter, monday.com (NASDAQ:MNDY) delivered good numbers. Sales expanded 19%, reaching USD 377.5 million, roughly 2.2% above consensus, and billings improved 17.1% to USD 374.8 million. Margins moved in the right direction as well. Adjusted Operating Income totaled USD 89.4 million, close to a 24% Margin compared with 15% one year before, while the GAAP Operating Margin moved into positive territory at 8.3%. Adjusted per-share Earnings of USD 2.14 cleared the USD 1.37 to USD 1.41 window that the market had priced in. Demand from larger buyers stayed visible: accounts paying above USD 100,000 annually climbed 33%, reaching 2,127, while those over USD 50,000 grew 26% to 5,038. The AI product hit USD 36 million of annual recurring revenue, and AI agents completed more than 6 million interactions within under two quarters, an early sign of upside from usage-based pricing.

Fourth-Quarter Guide and the Retention Slide

Investors in subscription companies value how long growth can last, so forward signals often outrank a single quarter. The coming three months are guided to USD 380 million through USD 382 million, roughly 14% growth, a clear deceleration from 19% and about 1.2% below the consensus figure. The full year is now pegged between USD 1.473 billion and USD 1.475 billion, which points toward near 20% expansion, an adjusted operating margin near 18%, and a currency drag between 100 and 200 basis points. Retention fell to 108%, and the company foresees 107% at year end, compared with 117% twelve months earlier. Leadership linked the slowdown to weaker demand among small firms, a planned tilt toward bigger enterprise deals and short-term sales disruption following a headcount reduction of about 20%. Free Cash Flow margin also slipped, landing at 4.2% after 14.4% in the prior quarter.

Enterprise Pivot Versus Small-Business Softness

Bulls on monday.com (NASDAQ:MNDY) are betting that the move upmarket will pay. Enterprise accounts growing faster than 30% suggest the platform is capturing larger clients, which typically means stickier, bigger contracts over time. If AI usage turns into paid tiers, pricing power could follow. Bears counter that small-business softness persists, retention keeps falling and the rebuilt sales organization needs longer to recover, leaving growth stuck in the low teens through 2027. The stock also belongs to a software cohort that has been reassessed amid concerns that AI agents could erode seat counts for workflow applications. Next, watch how the retention figure moves, what fourth-quarter billings look like, whether a 2027 outlook shows steadier expansion, and if AI activity starts producing revenue.

Where Things Stand

monday.com slid about 7% on November 9, 2026, because a soft fourth-quarter forecast, implying growth close to 14%, plus weakening retention, outweighed a third-quarter beat. Revenue rose 19% and adjusted EPS reached USD 2.14. Enterprise traction and AI uptake are real strengths. Retention, small-business demand and sales output after the restructuring will reveal whether the deceleration is transitory.