Piper Sandler downgrades monday.com, cites cautious FY26 guidance and enterprise slowdown

Billy Fitzsimmons turned more cautious on monday.com as the company’s FY26 outlook pointed to slower momentum than Wall Street wanted to see. Piper Sandler downgraded the stock to Neutral and cut its price target to $85 from $100, a reset that landed after monday.com guided fiscal 2026 revenue to $1.452 billion to $1.462 billion, below analyst expectations of about $1.48 billion.

The call matters because monday.com had just posted a strong fiscal 2025 finish. Revenue reached $1.232 billion, up 27% year over year, while fourth-quarter revenue came in at $333.9 million, up 25%. Non-GAAP diluted EPS for the quarter was $1.04. Management also said it continued to see strong adoption of its AI products and progress upmarket, with larger customers standardizing on monday.com for mission-critical workflows.

Even with those numbers, investors focused on what comes next. The company said customers with more than $50,000 in ARR made up 41% of total ARR as of December 31, 2025, and it reported 110% net dollar retention, 4,281 customers above the $50,000 ARR mark, and more than 250,000 customers worldwide. Those are the kind of metrics that normally support premium SaaS multiples. But the softer FY26 guide suggests the market wants more evidence that enterprise expansion can outrun the pullback in easier growth segments.

That is where Fitzsimmons’ downgrade hits the workplace software conversation hardest. The bearish note pointed to a tougher market environment, slower seat expansion in collaboration software, and performance-marketing headwinds tied to SMB customers. In plain terms, monday.com is still selling into a large base, but the easiest growth is getting harder to harvest, and customer caution is showing up in the forecast. For sales teams, that usually means more scrutiny on pipeline quality and expansion deals. For product teams, it raises the bar on proving that new features drive durable adoption instead of just attracting attention.

The timing adds another layer. Monday.com launched Agentalent.ai in March 2026 as part of a broader push around enterprise AI agents, doubling down on the idea that AI can deepen usage and create new revenue paths. The company’s current pitch is still aggressive: a work platform used by more than 250,000 customers, with growing enterprise traction and a stated AI strategy. But Fitzsimmons’ move shows that Wall Street is no longer willing to price in that story on momentum alone.

Monday.com Ltd., incorporated in Israel and headquartered in Tel Aviv-Yafo, remains a growth company with real scale and room to expand. The problem now is that the market is asking for cleaner proof that AI, enterprise upgrades, and customer retention can translate into faster durable growth, not just a strong narrative.