Key Highlights

● monday.com slid on November 9, trading at $82.14 in late morning.

● Third-quarter Revenue was $377.5 million, ahead of expectations.

● Fourth-quarter guidance of $380 million to $382 million trailed the $385.7 million consensus.

● AI annual Recurring Revenue reached $36 million.

Swimming against the tide

monday.com (NASDAQ:MNDY) slid on Monday, November 9, 2026, standing out as a loser on one of the market's best days in months. Market data showed the shares down at $82.14 in late morning, while an early-afternoon reading showed a somewhat larger drop.

The culprit was guidance. The work-management software company reported a solid third quarter but forecast fourth-quarter revenue below what analysts had been expecting.

Beat now, soft later

For the third quarter, monday.com reported revenue of $377.5 million, up by nearly a fifth from a year earlier and ahead of expectations, according to news reports. The company also said its AI annual recurring revenue reached $36 million.

The problem was the outlook. monday.com guided fourth-quarter revenue to $380 million to $382 million, with a midpoint of $381 million, below consensus estimates of about $385.7 million. Its full-year 2026 forecast of $1.473 billion to $1.475 billion was slightly above the $1.47 billion consensus, but investors focused on the near-term slowdown.

Net revenue retention, a measure of how much more existing customers spend over time, also slipped from the prior quarter. The company cautioned that its shift to an AI-first model brought near-term operational headwinds, according to market coverage.

Why guidance carries so much weight

For fast-growing software companies, investors often care more about where the Business is heading than where it has been. A forecast that trails expectations, even by a few million dollars, can suggest growth is cooling. When a stock is valued on future growth, that can lead to a sharp repricing. The fourth-quarter forecast implies growth slowing from the third quarter's pace, and that deceleration is what many investors appeared to focus on.

The retention figure adds to the picture. If existing customers are expanding their spending more slowly, the company may need to rely more on new customers to grow.

Software's mixed day

monday.com's slide contrasted with gains elsewhere in software. CrowdStrike (NASDAQ:CRWD) and Palo Alto Networks (NASDAQ:PANW) rose, according to market reports, and reports noted some rotation from semiconductors into software. The Trade Desk (NASDAQ:TTD) also rallied.

The broader market was buoyant. The Nasdaq Composite surged 673.71 points to 25,253.14, its best day since July 30, and the S&P 500 climbed 173.08 points to 7,549.94. All 11 S&P 500 sectors rose, as oil slid on hopes for a US-Iran peace deal and chip stocks rebounded.

AI as both opportunity and challenge

monday.com's comments reflect a theme across the software industry: companies are racing to build AI into their products while working out how to price and deliver them. The $36 million in AI recurring revenue shows early traction, but the warning about near-term headwinds shows the transition is not seamless.

AI Revenue and Guidance Debate

Investors will look for evidence that the AI strategy can reaccelerate growth. Key metrics include AI revenue, net revenue retention and whether the company can meet or beat its fourth-quarter forecast. Management commentary on how long the AI-first transition headwinds might last will also matter.

Analysts may revise their estimates and ratings after the report, which could influence the stock. On the macro side, Tuesday's October Consumer Price Index is the last Inflation report before the Federal Reserve's December 8-9 meeting, where a rate hike is widely expected. Higher rates tend to pressure growth-stock valuations, including software.