monday.com Reports Q3 2026 Results with Record Operating Margins and Enterprise Growth
monday.com (MNDY) reported third-quarter revenue of $377.5 million, a 19% year-over-year increase driven by significant expansion in the enterprise segment. The company achieved record non-GAAP operating margins of 24%, up from 15% in the prior year, following a workforce restructuring that reduced headcount by 690 employees since Q2. While high-value enterprise customer segments showed robust growth—including a 58% increase in strategic customers with over $500,000 in ARR—the company faced headwinds in the small and midsize business (SMB) sector. Net Dollar Retention (NDR) moderated to 108% due to higher churn and slower additions in the down-market segment. The company is pivoting toward an AI-first model, reporting $36 million in AI Annual Recurring Revenue (ARR). Management noted that while AI adoption is strong, longer sales cycles and more deliberate buying behavior are impacting overall sales velocity.
Tickers: $MNDY
Topics: AI ARR enterprise customer expansion guidance operating margin revenue growth
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