Tech bloodbath continues as Monday.com stock tanks

Monday.com, a popular work‑management and project software provider, reported adjusted earnings of $1.04 per share for the fourth quarter of 2025, ahead of analyst expectations. Revenue also beat forecasts, reaching about $333.9 million for the quarter, up from roughly $268 million a year earlier.

Still, the company’s shares have fallen about 33.6% since the beginning of the year, suggesting that markets are reassessing the long‑term value of many software‑as‑a‑service (SaaS) players tied to AI‑powered productivity, even if underlying business is growing.

A disappointing earnings outlook

Outside of what should have been several highlights in Monday.com's most recent quarter, Marketwatch reported disappointing guidance from the company over the coming year, including a pedaling back of its 2027 revenue targets. 

The work-management software company projected first-quarter revenue to jump some 20% year-over-year, landing somewhere between $338 and $340 million. For the full year ahead, it estimated $1.45 billion to $1.46 billion off growth in the neighborhood of 19%. Still, those numbers didn't match FactSet analysts polling that saw a consensus of $343 million for Q1 and $1.48 billion for 2026 as a whole.

In its earnings call Monday, co-CEO Roy Mann said “No-touch channels continue to operate in a choppy demand environment, particularly among the smaller customers, which we expect to persist in 2026.”

“What this means, in practical terms," Mann elaborated, "is that the costs to acquire and expand self-serve customers have increased over the past year, and the returns on those investments have been below historical levels."

The market chill is not limited to Monday.com. Workday, a major provider of payroll, talent management and expense software widely used by Canadian employers, has announced layoffs affecting about 2% of its workforce, and its share price has fallen about 34% over the past year. 

In the wake of last week's AI selloff, investors are looking to separate the winners from the losers. Among the usual suspects of large-cap names, Monday's voting dollars flowed in favor of Oracle, Microsoft, and Nvidia, which climbed as high as 9%,  2%, and 3% respectively.

Looking beyond the valley

Investors weren't as kind to Monday.com, which saw its share price plummet 22% to a 52-week low of $76.41 by late Monday morning. Over the past year, the company's share price had plunged 77%.

Chief Financial Officer Eliran Glazer downplayed the impact of the guidance, emphasizing it "for now reflects what we believe we can execute against with high confidence." He said the firm is also dropping its original annual revenue target of $1.7 billion by the end of 2027, citing macroeconomic noise that's also affecting the no-touch business.

"We didn't see the improvement that we expected to see, and we see shift in the business, and shift in the business takes time," he said on the earnings call.

Co-CEO Eran Zinman saw reasons to be more hopeful long-term, casting it as a participant rather than an object of disruption in the AI race. He described its "[evolution] into an AI-powered work execution platform, built around three distinct layers of AI value," including its vibe-coding tool to quickly create workplace applications.

Monday.com reported earnings per share of $1.04 on an adjusted basis, ahead of the 92 cents a share from FactSet's pulse check of Wall Street.

From his trading-desk perspective at Mizuho, analyst Jordan Klein called Monday "a poster child for the AI-killing-software narrative,” while the challenges on the self-service sales side are happening as a related but separate consequence of AI.

“Any software (or Internet) based sales lead model that is heavily driven by SEO search volumes has been under a lot of pressure with investors freaked out that new AI agents and Google ‘AI Overviews’ … are completely changing ways consumers and business users gain information online,” Klein said.