monday.com’s artificial intelligence products are becoming a meaningful contributor to growth, with AI product annual recurring revenue doubling sequentially during Q2 2026 and representing 17% of the company’s total net new ARR.
Management said customer response to its new AI-focused strategy is exceeding expectations as monday.com restructures its organization, sharpens its product portfolio and commits more heavily to becoming an AI Work Platform.
The AI acceleration coincided with strong growth among monday.com’s largest customers. The number of customers generating more than $500,000 of ARR increased 68% year-over-year to 114 from 68, while customers above $100,000 of ARR increased 37% to 2,019.
Customers generating more than $50,000 of ARR increased 31% to 4,834. Large accounts are also becoming a greater portion of the business, with customers above $100,000 of ARR now representing 30% of total ARR compared with 26% a year earlier, while $500,000-plus customers represent 7% compared with 5%.
Remaining contracted revenue also expanded rapidly. Total remaining performance obligations increased 34% to $937 million, while current RPO increased 27% to $750 million.
Q2 revenue increased 22% year-over-year to $364.6 million. Non-GAAP operating income reached a record $61.1 million compared with $45.1 million a year earlier, while non-GAAP operating margin expanded to 17% from 15% despite an approximately 210-basis-point negative impact from foreign exchange movements.
GAAP operating loss narrowed to $1.5 million from $11.6 million, while GAAP diluted EPS increased to $0.08 from $0.03. Non-GAAP diluted EPS increased to $1.48 from $1.09.
monday.com is simultaneously reshaping its cost structure around the AI strategy. The company recorded $21.4 million of restructuring charges during Q2, including non-cash impairment charges related to office space in Israel that had originally been secured to accommodate planned workforce expansion.
The company also completed its existing $870 million share repurchase authorization during Q2. It repurchased approximately 2.33 million shares for about $182 million during the quarter, leaving no additional shares available for repurchase under that program at quarter-end.
For 2026, monday.com expects revenue of $1.466 billion to $1.474 billion, representing 19% to 20% growth. Non-GAAP operating income is expected between $230 million and $234 million, while adjusted free cash flow is projected at $280 million to $290 million.
KEY QUOTES:
“Q2 reinforced our conviction that our strategy is working and that it was time to move faster. We made the difficult decision to restructure our organization, sharpen our product portfolio, and commit fully to the AI Work Platform in order to capture the largest opportunity we have ever seen in software.”
“The early results reinforce our conviction. ARR from AI products doubled from Q1, representing 17% of net new ARR in Q2, and customer response to our new direction continues to exceed our expectations. We are building a faster, flatter company with clearer priorities, and we are just getting started.”
Roy Mann And Eran Zinman, Co-Founders And Co-CEOs Of monday.com
“Our Q2 results demonstrate the underlying strength of the business as we continue to execute on our strategy. Revenue grew 22% year-over-year, and non-GAAP operating income was at record-levels, reflecting the improved focus of our cost structure.”
Eliran Glazer, Chief Financial Officer Of monday.com
