Monday.com (NASDAQ: MNDY) shares plunged over 12% in premarket trading Monday after the AI work platform provider issued fiscal 2026 revenue guidance below analyst expectations, overshadowing strong fourth-quarter results. The company reported Q4 adjusted earnings of $1.04 per share, beating estimates of $0.92, with revenue reaching $333.9 million, up 25% year-over-year and ahead of the $329.51 million consensus.

However, investors focused on the disappointing outlook, as Monday.com projected fiscal 2026 revenue between $1.452 billion and $1.462 billion, below analyst expectations of $1.48 billion. For Q1 2026, the company expects revenue between $338 million and $340 million, representing approximately 20% YoY growth, with non-GAAP operating margin of 11% to 12%. Despite the strong quarter, foreign exchange rates created near-term pressure on margins, with the company projecting non-GAAP operating margin of 11% to 12% for fiscal 2026, assuming a negative FX impact of 100 to 200 basis points.

Monday.com continued to make progress with larger customers, reporting a 45% increase in customers with more than $100,000 in annual recurring revenue (ARR) to 1,756. Customers with more than $50,000 in ARR now represent 41% of total ARR, up from 36% a year earlier. The company's net dollar retention rate was 110%, with higher rates of 116% for customers with more than $50,000 in ARR.