Core Viewpoint - monday.com Ltd. is expected to report a quarterly earnings increase to 88 cents per share for Q3, up from 85 cents in the same period last year, with projected revenue of $312.26 million, compared to $251 million a year earlier [1] Financial Performance - In Q2, monday.com reported a revenue growth of 27% year-on-year, reaching $299.01 million, surpassing the analyst consensus estimate of $293.54 million [2] - The company's shares rose by 4.7% to close at $189.59 following the Q2 earnings report [2] Analyst Ratings - Wells Fargo analyst Ryan Macwilliams initiated coverage with an Overweight rating and a price target of $260 for 2025 [5] - Citigroup analyst Steven Enders maintained a Buy rating and raised the price target from $326 to $332 for 2025 [5] - Cantor Fitzgerald analyst Thomas Blakey maintained an Overweight rating but reduced the price target from $286 to $257 for 2025 [5] - Piper Sandler analyst Brent Bracelin kept an Overweight rating and lowered the price target from $300 to $275 for 2025 [5] - Goldman Sachs analyst Kash Rangan maintained a Buy rating and cut the price target from $350 to $270 for 2025 [5]

Core Viewpoint - monday.com Ltd. is set to release its third-quarter earnings on November 10, with expectations of increased earnings and revenue compared to the previous year [1]. Financial Performance - Analysts predict that monday.com will report earnings of 88 cents per share for the third quarter, up from 85 cents per share in the same period last year [1]. - The consensus estimate for quarterly revenue is $312.26 million, a significant increase from $251 million a year earlier [1]. - In the second quarter, the company reported a revenue growth of 27% year-on-year, reaching $299.01 million, surpassing the analyst consensus estimate of $293.54 million [2]. Stock Performance - Following the positive earnings report in the second quarter, shares of monday.com rose by 4.7%, closing at $189.59 [2]. Analyst Ratings - Wells Fargo initiated coverage with an Overweight rating and a price target of $260 for 2025 [5]. - Citigroup maintained a Buy rating and raised the price target from $326 to $332 for 2025 [5]. - Cantor Fitzgerald maintained an Overweight rating but reduced the price target from $286 to $257 for 2025 [5]. - Piper Sandler also maintained an Overweight rating, cutting the price target from $300 to $275 for 2025 [5]. - Goldman Sachs maintained a Buy rating while lowering the price target from $350 to $270 for 2025 [5].

Group 1: Company Performance - monday.com reported revenues of $299 million last quarter, exceeding analysts' expectations by 1.8% and showing a year-on-year growth of 26.6% [1] - The company added 258 enterprise customers paying more than $50,000 annually, bringing the total to 3,702 [1] - Analysts expect monday.com's revenue to grow 24.4% year on year to $312.4 million this quarter, with adjusted earnings projected at $0.88 per share [2] Group 2: Analyst Expectations - Analysts have generally reconfirmed their estimates over the last 30 days, indicating confidence in the company's performance heading into earnings [3] - monday.com has a history of exceeding Wall Street's expectations, beating revenue estimates by an average of 2.3% over the past two years [3] Group 3: Industry Context - Peers in the productivity software segment, such as Atlassian and Pegasystems, reported year-on-year revenue growth of 20.6% and 17.3% respectively, both beating analysts' expectations [4] - Investors in the productivity software segment have maintained steady positions, with monday.com shares up 2.2% over the last month, while the average analyst price target is $266.33 compared to the current share price of $189.15 [5]

Core Insights - The productivity software sector has seen increased demand due to rising employee costs and the shift to remote work, driving the need for tools that enhance corporate productivity [1] - The 17 tracked productivity software stocks reported a strong Q2, with revenues exceeding analysts' expectations by 2.9% and an average share price increase of 5.6% since the earnings results [2] monday.com Performance - monday.com reported revenues of $299 million for Q2, reflecting a year-on-year increase of 26.6% and surpassing analysts' expectations by 1.8% [4] - The company demonstrated strong performance with significant beats in both EBITDA and annual recurring revenue estimates, indicating effective growth strategies [4] - Despite the positive earnings report, monday.com's stock has declined by 26.6% since the announcement, currently trading at $182 [5] Pegasystems Performance - Pegasystems achieved revenues of $381.4 million in Q2, marking a 17.3% year-on-year increase and outperforming analysts' expectations by 8.5% [7] - The company had a notable quarter with substantial beats in both billings and EBITDA estimates, leading to a 3.9% increase in stock price since reporting, currently trading at $59.30 [8]

Market Overview - Shares of monday.com fell 5.4% amid a broader sell-off in the technology sector, driven by concerns over high valuations and potential disruptions from artificial intelligence [1] - The tech-heavy Nasdaq index dropped approximately 1.4%, reflecting a wave of caution in the market, particularly affecting software and semiconductor stocks [4] Company-Specific Insights - monday.com has experienced significant volatility, with 29 price moves greater than 5% over the past year, indicating that the market views recent news as meaningful but not fundamentally altering its perception of the company [3] - The recent decline in monday.com's stock follows a previous drop of 5.2% just two days prior, linked to growing concerns over high valuations after an AI-driven market rally [3] Broader Industry Sentiment - The sell-off in technology stocks is part of a larger trend where investors are engaging in profit-taking, particularly in high-growth technology companies that had previously benefited from AI optimism [4] - Leadership at major financial institutions like Goldman Sachs and Morgan Stanley has indicated the potential for a market correction in the coming years, viewing this cooling-off period as a healthy aspect of a long-term bull market [4]

Core Insights - monday.com (MNDY) is set to report its third-quarter 2025 results on November 10, with expected total revenues between $311 million and $313 million, indicating a year-over-year growth of 24% to 25% [1] - The Zacks Consensus Estimate for third-quarter 2025 revenues stands at $312.02 million, reflecting a growth of 24.31% compared to the previous year [1] - The consensus estimate for earnings per share (EPS) is 89 cents, showing a year-over-year growth of 4.71% [2] Revenue and Earnings Performance - MNDY has consistently beaten the Zacks Consensus Estimate for earnings in the past four quarters, achieving an average positive surprise of 41.18% [4] - The company's rapid growth in its CRM business is expected to positively impact its third-quarter performance, having surpassed the $100 million annual recurring revenue milestone for monday CRM within three years of its launch [5] Strategic Developments - The introduction of new AI-powered features such as monday magic, monday vibe, and monday sidekick is anticipated to enhance user engagement and customer retention, contributing to revenue growth [6] - monday.com's focus on operational efficiency is reflected in its non-GAAP operating margin of 15% in the second quarter, indicating strong cost control and business growth [7] Challenges - A slowdown in search-generated demand, particularly due to changes in Google's AI and search algorithms, is expected to negatively affect MNDY's third-quarter results, with a noted decline in lead volumes from SMB and mid-market segments [8]

Core Viewpoint - The market anticipates that Monday.com (MNDY) will report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Monday.com is expected to post quarterly earnings of $0.89 per share, reflecting a year-over-year increase of +4.7% [3]. - Revenues are projected to be $312.02 million, which is an increase of 24.3% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates [4]. - The Most Accurate Estimate for Monday.com is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.62%, suggesting a bearish outlook from analysts [12]. Earnings Surprise History - In the last reported quarter, Monday.com exceeded expectations by posting earnings of $1.09 per share against an expected $0.84, resulting in a surprise of +29.76% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Comparison - HubSpot (HUBS), another player in the Zacks Internet - Software industry, is expected to report earnings of $2.58 per share, indicating a year-over-year change of +18.4% [18]. - HubSpot's revenues are expected to reach $786.26 million, up 17.4% from the previous year [18].

Core Insights - monday.com has been recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Collaborative Work Management (CWM) for the third consecutive year [1] - In the 2025 report, monday.com was positioned furthest for both Completeness of Vision and Ability to Execute among all evaluated vendors, marking the first time it achieved this position on both axes [1] Company Performance - The recognition reflects monday.com's strong performance and strategic vision in the collaborative work management sector [1] - The company has demonstrated consistent growth and innovation, contributing to its leadership status in the industry [1]

Core Insights - Optimist Fund reported a return of +9.1% in Q3 2025, outperforming the benchmark return of 7.9% [1] - The fund is focusing on cyclical holdings that have been in multi-year downswings while also paying attention to developments in AI [1] Company Overview: Monday.com Ltd. (NASDAQ:MNDY) - Monday.com Ltd. develops software applications and work management tools, with a one-month return of 8.35% and a 52-week loss of 33.60% [2] - As of October 30, 2025, Monday.com Ltd. had a stock price of $198.90 and a market capitalization of $10.254 billion [2] Financial Performance - In August, Monday.com reported a revenue increase of 27% year-over-year and a free cash flow increase of 26% year-over-year [3] - The company made a modest adjustment to its second-half 2025 revenue guidance, reducing it by approximately $2.5 million, which is notable given its history of raising guidance at this time of year [3] Hedge Fund Interest - Monday.com Ltd. was held by 67 hedge fund portfolios at the end of Q2 2025, an increase from 64 in the previous quarter [4] - Despite its potential, the company is not considered among the top 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer better upside potential and lower downside risk [4]

Core Insights - Carillon Tower Advisers reported a continued upward trend in equity markets, driven by AI advancements, reduced inflation from tariffs, and potential interest rate cuts by the U.S. Federal Reserve [1] - The Russell 2000® Growth Index increased by 12.19% in Q3 2025, slightly underperforming the Russell 2000 Value Index, which rose by 12.60% [1] Company-Specific Insights - Monday.com Ltd. (NASDAQ:MNDY) is highlighted as a key stock in the Carillon Eagle Small Cap Growth Fund's portfolio, with a one-month return of 8.79% but a significant 33.21% decline over the past 52 weeks [2] - As of October 28, 2025, Monday.com Ltd. had a market capitalization of $10.337 billion, with its stock closing at $200.52 per share [2] - The company reported better-than-expected quarterly results, although its future guidance was negatively affected by changes in lead generation and macroeconomic pressures [3] Hedge Fund Interest - Monday.com Ltd. was held by 67 hedge fund portfolios at the end of Q2 2025, an increase from 64 in the previous quarter, indicating growing interest among institutional investors [4] - Despite this interest, the analysis suggests that certain AI stocks may present greater upside potential and lower downside risk compared to Monday.com Ltd. [4]