Monday.com, an Israel-based work process management software company, saw its share price plunge nearly 21 percent after disappointing investors with its guidance for the first quarter of 2026, despite beating analysts' estimates for the fourth quarter of 2025. The company expects first-quarter revenue of $338-340 million, below consensus estimates, and full-year revenue growth of 18-19 percent, also falling short of analyst expectations.

In the fourth quarter of 2025, Monday.com reported revenue growth of 25 percent year-on-year to $334 million, with net profit figures surpassing market forecasts. For the full year, revenue grew 27 percent to $1.23 billion, and the company maintained strong cash reserves, partly due to a share buyback program.

Monday.com continued its shift toward larger enterprise customers, with significant increases in the number of clients generating high annual recurring revenue. Despite near-term margin pressures from foreign exchange rates, company leadership emphasized strong execution, expanding product offerings, and healthy underlying business fundamentals.

Analysts remain largely positive about Monday.com's prospects, with most maintaining favorable ratings and an average price target well above the current market price following the recent decline.