Shares of Monday.com rose about 16% over the past month after investors re-assessed the company’s earlier second-quarter results and benefited from a broader improvement in sentiment toward legacy enterprise software. The turnaround in momentum followed a strong earnings beat from Salesforce, which boosted expectations for customer-relationship management (CRM) and enterprise software peers.
Key takeaways
- Monday.com shares gained roughly 16% over the month.
- Investor sentiment shifted after Salesforce’s fiscal 2027 second-quarter results beat expectations.
- Monday.com posted a “double beat” in its own second-quarter report, but investors initially focused on softer guidance nuance.
- The stock’s outlook now hinges on whether Monday.com can sustain momentum into its third-quarter and 2026 targets.
What Monday.com reported—and why the early reaction was muted
Monday.com released its quarterly results just before the market open on Aug. 10. For the quarter, revenue increased 22% year over year to nearly $365 million. Adjusted net income rose nearly 13% to $65.6 million, or $1.48 per diluted share.
Analyst expectations at the time suggested revenue of just under $356 million and adjusted profitability of $1.11 per diluted share, implying Monday.com beat consensus on both the top and bottom lines. Despite that, shares initially sold off as investors examined guidance and specific operating details more closely.
In its outlook, Monday.com projected third-quarter and full-year progress. For the full year 2026, the company guided revenue to a range of nearly $1.47 billion to slightly above that figure, corresponding to year-over-year growth of at least 19%. It also forecast adjusted operating income between $230 million and $234 million.
While the growth rate looked strong, the higher end of the revenue range was described as largely matching rather than exceeding the average analyst estimate. Investors also weighed concerns related to net revenue retention growth rate as well as ongoing skepticism toward older software businesses amid the broader market’s AI-linked rotation.
How Salesforce’s earnings helped lift the software complex
The key catalyst for the subsequent rally was another company’s earnings report—this one from Salesforce, released late in the month. Salesforce’s fiscal 2027 second-quarter results included a more than doubling of adjusted net income versus the prior period and also delivered a convincing beat on full-year bottom-line guidance.
The size of the profitability surprise and the favorable outlook helped reframe expectations for enterprise software more broadly, with particular emphasis on CRM providers. Monday.com benefited from both effects—improved sector sentiment and renewed attention on CRM-related demand signals—after its earlier report had failed to produce a sustained positive reaction.
Market reaction and what investors are watching next
Monday.com’s rebound suggests investors moved past the initial “good but not enough” interpretation of its second-quarter results and focused more on the fundamentals that supported the quarter itself, including revenue growth and adjusted earnings performance.
Even so, the sustainability of the move remains uncertain. The company’s full-year revenue guidance was characterized as meeting rather than comfortably topping average estimates, meaning any continued upside likely depends on follow-through in subsequent quarters—especially third-quarter performance and continued traction reflected in retention dynamics. With enterprise software sentiment still sensitive to guidance granularity, traders and long-term investors will likely monitor whether Monday.com’s improvements are translating into durable demand and margin outcomes.
Next, attention is expected to shift toward Monday.com’s upcoming updates on operating performance and 2026 progress, alongside broader market catalysts that influence enterprise tech valuations, including analyst revisions after recent earnings and incoming macro data that affects expectations for interest rates.
