Via greatplacetowork.com
The work management platform doubled its AI-related recurring revenue in a single quarter, prompting a guidance raise and organizational overhaul.
Monday.com just posted the kind of quarter that makes a CEO’s restructuring memo look prescient rather than panicky. The work management platform reported Q2 2026 revenue of $364.6 million, a 22% year-over-year increase, while its AI products went from promising experiment to meaningful revenue driver in the span of three months.
The company’s AI-related annual recurring revenue doubled since Q1 and now accounts for 17% of net new ARR.
The numbers behind the pivot #
Monday.com’s profitability story is arguably more interesting than the top line. Non-GAAP operating income hit a record $61.1 million, good for a 17% margin. That’s up from $45.1 million and a 15% margin in the same quarter last year.
Management raised its full-year 2026 non-GAAP operating income guidance to $230 to $234 million, translating to roughly a 16% margin for the year. For Q3 2026, the company guided revenue between $368 and $370 million, implying 16% to 17% year-over-year growth.
Enterprise customers are getting bigger #
Monday.com posted record net customer additions above both the $100K and $500K ARR thresholds. Customers contributing more than $50K in ARR now represent 43% of total ARR, up from 38% a year ago.
The net dollar retention rate of 109%, particularly strong among larger clients, confirms that existing customers are spending more, not just sticking around. A 109% net dollar retention rate means that even if monday.com signed zero new customers, its existing base would still generate 9% more revenue than the prior year.
The AI Work Platform bet #
Co-CEOs Roy Mann and Eran Zinman framed the quarter as validation of the company’s organizational restructuring, which centers on transforming monday.com into what they’re calling the “AI Work Platform.” The restructuring involves portfolio adjustments and a streamlined company structure designed to accelerate how quickly the company can ship AI features.
The 17% of net new ARR coming from AI products is the clearest signal yet that this isn’t just a branding exercise. When nearly one in five new recurring revenue dollars comes from AI-related offerings, and that share doubled in a single quarter, it suggests genuine product-market fit rather than hype-driven adoption.
The raised full-year guidance implies management believes the AI tailwind will persist through at least the back half of 2026. At a 16% projected operating margin for the full year, monday.com is threading the needle between investing aggressively in AI and delivering the profitability that public market investors increasingly demand from software companies.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our