Tech

Monday.com slides 19% intraday on AI disruption fears

monday.com stock fell more than 19% intraday after weak guidance for the current quarter. The company issued a Q1 revenue guide of $338-340 million and full-year revenue of $1.452-1.462 billion, below consensus. FX-related margin headwinds amid an AI-shift backdrop contributed to choppiness in software stocks.

📅 February 09, 2026
⏱️ 2 min read
Monday.com slides 19% intraday on AI disruption fears

Key Takeaways

  • Q1 revenue guide of $338-340M is below the $343M consensus.
  • Full-year revenue guide of $1.452-1.462B trails FactSet consensus near $1.48B.
  • Q4 revenue of $333.9M, up 25% YoY, above consensus of $329.6M; Q4 non-GAAP EPS of $1.04 vs $0.92 expected by LSEG.
  • Operating income guidance for the year of $165-175M, below FactSet's $220.2M estimate.
  • YTD, IGV down ~22% while monday.com is down ~50%.

People Involved

  • Eran ZinmanCEO, monday.com

Entities Involved

  • monday.com Ltd. (MNDY)Software company
  • IGV ETFiShares Expanded Tech-Software Sector ETF, benchmark for software names
  • FactSetFinancial data provider, consensus estimates cited by CNBC
  • LSEGLondon Stock Exchange Group, data/earnings estimates source

MarketMoodz Analysis

The results and guidance highlight how AI disruption fears are weighing on software equities. Investors are re-pricing software names as agents and AI-enabled features threaten traditional software business models, even as monday.com pivots toward AI-native capabilities. The near-term focus is on how much AI-enabled revenue can offset FX-driven margin headwinds and how revenue mix shifts impact gross and operating margins.

From a historical perspective, AI-driven disruption has been a recurring theme since the rise of intelligent assistants and enterprise AI. Software names with clear AI strategies have often seen volatility around guidance prints, especially when FX exposure and gross margin sensitivity complicate the earnings picture. The IGV ETF's ~22% YTD drop underscores how embedded AI risk is in current valuations.

What to watch next: track the pace of AI feature adoption, the mix of AI-enabled revenue, ARR growth, churn, and gross/operating margins. Also monitor FX hedging and sensitivity, as near-term margin pressure can persist even as product capabilities improve. A clearer path to higher AI-enabled ARR and disciplined operating leverage could support a rebound, even amid broader AI caution.

Source: Original Article

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