monday.com Reports $36M AI Revenue as Growth Slows
monday.com’s AI products reached $36 million in annual recurring revenue, while its next-quarter growth forecast slowed to about 14%.
By shahzad
7 min read1 readers
In this story
Key takeaways
monday.com reported $377.5 million in third-quarter revenue, up 19% from a year earlier, on November 9, 2026.
Its AI products generated $36 million in annual recurring revenue, but the company forecast fourth-quarter revenue growth of about 14%—slower than the third quarter.
Customers and investors should distinguish the company's AI adoption figures from the financial outlook: the new AI business is growing, but it is not yet large enough to erase the importance of its core software revenue and cash flow.
monday.com reported third-quarter revenue of $377.5 million on November 9, 2026, while its AI products reached $36 million in annual recurring revenue. The work-management software company expects fourth-quarter revenue growth of approximately 14%, down from 19% in the quarter it just reported, putting its AI transition and near-term growth outlook in focus.
What did monday.com report on November 9?
The company’s third-quarter results cover the three months ended September 30, 2026. Revenue reached $377.5 million, a 19% year-over-year increase, according to monday.com’s earnings release.
Profitability improved on several reported measures. GAAP operating income was $31.2 million, compared with an operating loss of $2.4 million in the third quarter of 2025. Non-GAAP operating income rose to $89.4 million from $47.5 million, while the non-GAAP operating margin increased to 24% from 15%.
GAAP means generally accepted accounting principles, the standard accounting rules used in U.S. financial reporting. Non-GAAP figures are adjusted measures that companies use alongside standard results; monday.com says its non-GAAP measures exclude items such as share-based compensation and restructuring charges. Investors should compare both sets rather than treating the adjusted figure as a replacement for GAAP results.
The company's AI products—including AI credits, agents and vibe—reached $36 million in annual recurring revenue (ARR). ARR is a run-rate estimate based on recurring subscription revenue, not the same thing as cash already collected or revenue recognized during the quarter. monday.com also said its monday agents passed 6 million interactions in less than two quarters.
The outlook is more cautious than the headline growth figure. For the fourth quarter, monday.com expects revenue of $380 million to $382 million, representing year-over-year growth of approximately 14%. For the full year, it expects revenue of $1.473 billion to $1.475 billion, or roughly 20% growth.
Independent coverage by Calcalist's CTech also highlighted the slower growth forecast and the company's AI-focused business transition. The report noted that cash generation was weaker than a year earlier: net cash from operating activities was $20.4 million, compared with $95.1 million in the year-ago quarter, while adjusted free cash flow was $63 million versus $92.3 million.
Why does the AI revenue figure matter?
Analysis: monday.com is trying to become an AI-first work platform while continuing to grow its established project-management and collaboration business. The $36 million AI ARR figure is evidence that customers are paying for AI-related products, but it should be viewed in proportion to the company's $377.5 million quarterly revenue.
The two figures measure different things and should not be directly compared as if they were equivalent. Quarterly revenue is recognized over a three-month reporting period; ARR is an annualized recurring-revenue run rate. The company has not presented the $36 million as a separate quarterly revenue contribution.
The more immediate signal for customers and investors is the combination of rising AI usage and a slower growth forecast. Six million agent interactions show product activity, but interaction counts alone do not reveal how much time customers save, whether they renew, or how profitable those services will become.
The fourth-quarter forecast also suggests that strong results in one quarter do not guarantee the same pace will continue. CTech reported that the company exceeded its earlier revenue projection, but management's next-quarter guidance points to slower year-over-year growth. That makes execution—not just the number of AI features or interactions—a key measure to watch.
What should monday.com customers and investors do now?
For customers, the results do not announce a change to existing subscriptions or a requirement to adopt monday.com's AI features. They do, however, offer a reason to assess whether AI functions solve a real workflow problem before expanding usage or paying for additional capabilities.
A practical review:
Identify repetitive work. Look for recurring status updates, task routing, summaries or handoffs that consume employee time.
Test one workflow. Use a limited pilot with clear human review, rather than deploying an AI agent across every team at once.
Measure outcomes. Track time saved, error rates, completion quality and the amount of human correction required.
Check the full cost. Compare any added subscription or usage charges with measurable operational benefits.
Keep sensitive information controlled. Review workspace permissions, data access and company policies before connecting AI features to internal projects.
Investors should focus on the next reported quarter, not just the AI ARR headline. The company's stated fourth-quarter revenue range is $380 million to $382 million. Cash flow, customer retention, larger-customer growth and the contribution from AI products will help show whether the transition is translating into durable business performance.
Big Zero has covered other ways software companies are adapting to AI, including Canva's workforce restructuring and GitHub Copilot's code-review API controls. monday.com's announcement is different: it provides fresh financial results and a measurable AI revenue run rate, rather than only a product or organizational change.
What is still unknown, and what should readers watch next?
The earnings release does not break out the $36 million AI ARR figure by individual product, customer size or geography. It also does not disclose how much of that run rate represents new spending by existing customers versus new customer purchases.
The 6 million agent interactions figure is a usage measure, not a customer-savings or accuracy benchmark. monday.com has not provided a public, independently audited conversion from those interactions to productivity gains.
The next near-term checkpoint is the company's fourth-quarter reporting period. Its current guidance calls for $380 million to $382 million in revenue and approximately 14% year-over-year growth. Actual results may differ from management's forecast.
Frequently asked questions
How much revenue did monday.com report for the third quarter of 2026?
monday.com reported $377.5 million in revenue for the quarter ended September 30, 2026. That was 19% higher than the same quarter a year earlier.
How much revenue are monday.com's AI products generating?
The company said AI products reached $36 million in annual recurring revenue in the third quarter. ARR is an annualized run-rate measure, not a separate quarterly revenue figure.
Why is monday.com forecasting slower growth?
The company expects fourth-quarter revenue of $380 million to $382 million, equal to approximately 14% year-over-year growth. Management said its investment in enterprise sales, product development and AI is reflected in its outlook.
Does the report mean customers must use monday.com's AI agents?
No. The earnings announcement does not require customers to adopt AI products or change their existing plans. Businesses should evaluate new features against their own workflow needs, costs and data policies.
What should investors watch after these results?
The next report should show whether monday.com meets its fourth-quarter revenue guidance and how its AI products develop. Cash generation, customer retention and the scale of AI-related recurring revenue are also important indicators.
Bottom line
monday.com delivered 19% third-quarter revenue growth and reported $36 million in AI ARR, but its forecast points to slower growth in the next quarter. Customers should test AI features against measurable workflow benefits, while investors should watch whether AI adoption translates into stronger recurring revenue and cash generation.
