McGinnis is Cautious on Monday.com (MNDY) Due to Reduced Guidance, 2026 Growth Concerns

Earlier for Q3 2025, Monday.com achieved full gross of $317 million, which was a 26% summation year-over-year. This gross was besides $4.59 cardinal supra Street expectations. EPS for the 4th stood astatine $1.16, which surpassed guidance by $0.28. The institution besides maintained beardown lawsuit loyalty, with Net Dollar Retention astatine 111% successful Q3, a complaint expected to stay unchangeable for the full 2025.

The multi-product strategy is successfully driving growth, with caller products present accounting for implicit 10% of full ARR, which surpassed the company’s 2025 extremity up of schedule. However, the company’s guidance for the upcoming 4th reflects a much measured approach, sparking immoderate interest implicit aboriginal growth. Q4 gross guidance is projected to beryllium betwixt $328 and $330 million, which translates to a little maturation of 22% to 23%. Full-year 2025 gross guidance was acceptable astatine $1.226 to $1.228 billion, a ~26% growth.

Monday.com Ltd. (NASDAQ:MNDY) develops bundle applications internationally. The institution provides Work Operating System, a cloud-based ocular enactment OS that consists of modular gathering blocks utilized to assemble bundle applications and enactment absorption tools.

While we admit the imaginable of MNDY arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.