monday.com Ltd. Ordinary Shares Q1 2026 Earnings Recap

Monday.com’s shares rose 6.7% following a quarter that demonstrated notable revenue growth and efficiency gains, driven by strong enterprise adoption and early traction from AI initiatives.

Key Takeaways

• Q1 revenue grew 24% year-over-year to $351 million, supported by sustained demand and consolidation of enterprise work infrastructure.
• Operating profit hit a record $49 million, with operating margin steady at 14%, despite a 190 basis point FX headwind mainly from Israeli shekel appreciation.
• Net revenue retention (NDR) was 110% in Q1, though management cautioned it will slightly decline over the full fiscal year.
• AI contributed approximately 3% of net new ARR, with internal AI-driven productivity improvements including a 32% increase in output per developer and 38% reduction in product time to market.
• The transition to a consumption-based “seats credit” pricing model aims to align revenue with AI adoption, with enterprise customers receiving complementary AI packages to encourage scale.