Monday.Com Analysts Cut Their Forecasts After Q3 Results

Monday.com reported better-than-expected fiscal third-quarter results, with revenue growing 26% year-over-year to $316.86 million and adjusted EPS of $1.16, both surpassing analyst estimates. However, the company's fiscal fourth-quarter 2025 revenue guidance of $328 million-$330 million fell short of consensus expectations, causing shares to decline 0.7% in pre-market trading and prompting several analysts to lower their price targets despite maintaining positive ratings.

Analysis

Monday.com reported robust fiscal third-quarter results, with revenue growing 26% year-over-year to $316.86 million, surpassing the analyst consensus of $312.31 million. Adjusted EPS of $1.16 also significantly beat estimates of 88 cents, indicating strong operational execution. Despite these beats, MNDY shares experienced a 0.7% decline to $165.05 in pre-market trading, suggesting investor focus on forward-looking metrics.

The primary driver for the negative market reaction appears to be Monday.com's fiscal fourth-quarter 2025 revenue guidance, projected at $328.00 million-$330.00 million, which fell short of the $333.68 million analyst consensus. While the company reiterated its full-year 2025 revenue guidance of $1.224 billion-$1.229 billion, largely aligning with consensus, the near-term outlook seems to have tempered enthusiasm. The adjusted operating margin outlook for Q4 is 11%-12%, with a full-year outlook of approximately 14%.

Following the earnings announcement, several analysts lowered their price targets on MNDY, reflecting a recalibration of future growth expectations. Piper Sandler, B of A Securities, and Baird all reduced their price targets, from $275 to $250, $205 to $195, and $240 to $210 respectively, despite maintaining Overweight, Neutral, and Outperform ratings. This indicates a more cautious stance on valuation, even with continued confidence in the company's long-term prospects.

Key Decisions for Investors

• Investors should closely monitor Monday.com's Q4 revenue performance against its updated guidance, as this appears to be the primary concern driving recent share price weakness.
• Evaluate the implications of reduced analyst price targets, which suggest a re-evaluation of growth multiples despite strong Q3 results and reiterated full-year guidance.
• Consider the balance between strong current quarter execution and a slightly softer near-term revenue outlook, assessing if the pre-market dip presents a potential entry point for long-term investors or warrants a more cautious approach.