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Monday.com (MNDY) is crashing lower following the release of its Q4 results, as a cautious 2026 outlook and the abandonment of long-term financial targets overshadowed a solid Q4 beat. While the company is successfully pivoting toward the enterprise market and rapidly integrating AI, the "choppy" demand environment for its self-serve segment and significant foreign exchange headwinds have triggered a sharp reassessment of its near-term growth trajectory.

• MDNY issued weak FY26 revenue guidance of $1.452-$1.462 bln and 1Q26 guidance of $338-$340 mln, signaling a sharp deceleration from the $27% growth seen in 2025.
• Performance marketing for "no-touch" (self-serve) channels remains choppy, with rising acquisition costs and lower returns prompting management to assume no recovery in this segment for 2026.
• The appreciation of the Israeli shekel is expected to create a 100-200 bps negative impact on both operating and free cash flow margins in the coming year.
• Management is no longer discussing 2027 financial targets, choosing to focus on 2026 execution given the volatile macro environment and evolving AI landscape.
• Large-scale adoption remains a core strength. Customers with over $50,000 ARR now represent 41% of total revenue, and those with over $500,000 ARR grew 74% yr/yr.
• MNDY launched "monday vibe" - the fastest product to hit $1 mln in ARR - and began monetizing "Sidekick" AI as a paid add-on for Pro and Enterprise tiers.

Briefing.com Analyst Insight:

MNDY is effectively navigating an enterprise pivot, but the market is fixated on the choppy decay of its legacy SMB base. By pulling its 2027 targets, MNDY has prioritized credibility over optimism, acknowledging that AI-driven re-architecture and currency volatility make long-term forecasting difficult. While the 74% growth in large enterprise accounts and record 91% gross retention for top-tier clients suggest a powerful underlying engine, the near-term margin compression from the Israeli shekel and front-loaded AI investments have clearly reset investor expectations. The focus now shifts to whether the "Sidekick" and "vibe" products can convert early momentum into the high-confidence revenue growth needed to offset self-serve weakness.