Monday.com Shares Fall 27% After Q3 Revenue Guidance Miss

Monday.com reported strong second-quarter 2025 results with revenue of $299 million, up 27% year-over-year, and adjusted earnings of $1.09 per share, beating analyst expectations. However, its third-quarter revenue guidance of approximately $312 million slightly missed Wall Street's estimates, leading to a 20-27% drop in its stock price. Despite the recent share decline, analysts remain optimistic, with a consensus 'Outperform' rating and an average price target of $352.28, suggesting over 42% upside potential from current prices. The company raised its full-year revenue forecast slightly to between $1.224 billion and $1.229 billion. CFO Eliran Glazer expressed confidence in the company’s efficient growth and business momentum, highlighting a strong net revenue retention rate of 115%. Over the past three years, Monday.com has maintained a robust compound annual growth rate of 38.9%, signaling sustained demand for its software-as-a-service platform.