Monday.com (NASDAQ: MNDY) shares climbed an impressive 16% in August, driven by a combination of solid quarterly results and a powerful lift from a major peer.
The workplace productivity software developer, which has expanded into the customer relationship management space, initially faced a lukewarm reception from investors after its second-quarter earnings dropped on August 10.
Revenue for the quarter came in at nearly $365 million, representing year-over-year growth of 22%, a strong headline figure by most measures.
Non-GAAP net income rose nearly 13% to $65.6 million, translating to $1.48 per diluted share for the period.
Both figures topped analyst consensus estimates, which had projected revenue of just under $356 million and adjusted earnings of $1.11 per share.
Despite the double beat, investors focused on areas of concern, including a softening net revenue retention growth rate and broader skepticism toward legacy software companies in an era dominated by artificial intelligence.
Monday.com’s full-year 2026 revenue guidance called for between almost $1.47 billion and slightly above that figure, implying year-over-year growth of at least 19%, alongside adjusted operating income of $230 million to $234 million.
The top end of that revenue range essentially matched, rather than exceeded, the average analyst estimate, which gave cautious investors reason to sell into the initial post-earnings bounce.
The real turning point came late in August when Salesforce (NYSE: CRM) reported its fiscal second-quarter 2027 earnings, featuring a more than doubling of adjusted net income that crushed the average analyst projection.
Salesforce also delivered a convincing beat on full-year bottom-line guidance, dramatically shifting sentiment across the legacy software and CRM landscape.
That single earnings report was enough to reverse the negative tone hanging over the sector, lifting Monday.com alongside other software names in the final stretch of the month.
The broader question for investors is whether Monday.com can sustain this momentum heading into its third quarter, with fundamentals pointing to continued improvement.
The stock’s current forward price-to-earnings ratio on adjusted earnings sits below 14, which appears low given the company’s consistent revenue growth and reliably high-margin business model.
For investors who believe the software sector’s AI-driven discount is overdone, Monday.com’s current valuation may represent a meaningful opportunity at what still looks like a bargain level.
