Monday.com beats Q1 estimates, raises guidance after AI platform launch

monday.com surged more than 28% after the company beat first-quarter expectations, lifted its full-year outlook and gave investors a clearer look at how its AI push could support growth without forcing headcount to rise at the same pace. For a workplace software company that sells itself on running the work layer inside large organizations, the message was that AI is moving from a product feature to part of the operating model.

The company reported first-quarter revenue of $351.3 million, up 24% from a year earlier and ahead of the roughly $339 million analysts had expected. Earnings per share came in at $1.15, above the $0.88 estimate. monday.com also said it posted record GAAP and non-GAAP operating income, and a record for net adds of customers with more than $500,000 in annual recurring revenue.

Management paired those results with a new product message. monday.com launched its AI Work Platform with native agents in May 2026 and said it is shifting toward consumption-based pricing and AI credits. The company said AI accounted for about 10% of net new ARR, an early sign that the technology is starting to translate into revenue rather than just demos. monday.com has also agreed to acquire One AI to add voice-agent capabilities, widening the scope of the platform beyond task management and workflow automation.

The customer base behind that push is already large. monday.com said it had more than 250,000 customers as of Dec. 31, 2025, 4,547 customers over $50,000 in ARR as of March 31, 2026, and a net dollar retention rate of 110%. The company had 3,211 employees at the end of the quarter. That combination, broad adoption with expanding enterprise accounts and a relatively lean workforce, is what makes the latest update relevant inside the company as well as on Wall Street.

For employees, the subtext is clear: monday.com is betting that AI can lift productivity enough to support revenue growth without a proportional hiring surge. For customers, the implication is that the platform is being tuned for more usage-based spending, with AI agents and credits becoming part of day-to-day workflow decisions. For candidates watching from the outside, the quarter suggests monday.com is leaning harder into product velocity, enterprise expansion and operating leverage at the same time.

The company raised full-year 2026 revenue guidance to $1.466 billion to $1.475 billion, from its previous outlook, and guided second-quarter revenue to $354 million to $356 million. It also forecast full-year non-GAAP operating income of $185 million to $191 million, a margin of about 13%. Shares traded around $75.46 after the report, giving monday.com a market value of roughly $3.9 billion and underscoring how much of the stock’s next move now depends on whether AI becomes a durable growth engine.