Monday.com's Fourth-Quarter Revenue Outlook Misses Views Amid AI Transition Headwinds

12:14 PM EST, 11/09/2026 (MT Newswires) -- Monday.com (MNDY) on Monday issued a fourth-quarter revenue outlook that fell short of Wall Street's expectations, while the company flagged continuing pressures from its transition to artificial intelligence. For the current quarter, the work management software provider projects revenue of $380 million to $382 million, representing year-over-year growth of roughly 14%. Analysts in a FactSet survey expect $385.7 million. The outlook implies a slowdown in annual revenue growth from 19% in the September quarter, when sales reached $377.5 million, surpassing the FactSet-polled consensus of $369.2 million. Third-quarter adjusted earnings jumped to $2.14 per share from $1.16 a year earlier, while the Street expected $1.41. While the latest quarterly revenue exceeded the company's guidance, broader market headwinds "contributed to some moderation in our growth rate, net dollar retention and net additions this quarter," Co-Chief Executive Roy Mann said on an earnings call, according to a FactSet transcript. "We're also in the middle of a major transition as a business, shifting our core vision from managing work to doing the work with people and AI agents operating together," he said. BofA Securities said in October that Monday.com was "particularly exposed to competition from general purpose agent products like Meta (META) Muse," and that "self-serve headwinds" seemed to be intensifying across the app software landscape. Monday.com's US-listed shares declined 7.2% intraday Monday. The stock has lost about 45% year to date. As part of its AI initiatives, the company launched Harmony, a voice AI agent platform designed for enterprise sales teams, in October. In July, Monday.com disclosed a restructuring plan that would trim its workforce by about 20% amid its AI-related transition. Executing the plan created "some near-term disruption," Co-CEO Eran Zinman told analysts. Monday.com, which competes with Atlassian (TEAM) and Asana (ASAN), now expects revenue of $1.473 billion to $1.475 billion for 2026, compared with its prior guidance of $1.466 billion to $1.474 billion. The Street is looking for $1.47 billion. Monday.com is now looking at full-year adjusted operating income of $268 million to $270 million, up from the range of $230 million to $234 million previously expected. For the fourth quarter, it projects adjusted operating income of $68 million to $70 million, compared with $89.4 million in the September quarter. Last week, Atlassian raised its fiscal 2027 revenue growth outlook after first-quarter results came in stronger than expected. Asana is scheduled to release its fiscal third-quarter results on Dec. 1. Price: 81.88, Change: -6.05, Percent Change: -6.88