Monday.com (NASDAQ: MNDY) shares sank more than 21% intra-day on Monday after the AI-powered work management platform issued fiscal 2026 revenue guidance that fell short of analyst expectations, overshadowing a fourth-quarter earnings and revenue beat.

The company reported adjusted earnings of $1.04 per share for the fourth quarter, exceeding analyst estimates of $0.92. Revenue rose 25% year over year to $333.9 million, also ahead of the consensus forecast of $329.51 million. Investor sentiment, however, was pressured after Monday.com projected fiscal 2026 revenue of $1.452 billion to $1.462 billion, below analyst expectations of approximately $1.48 billion.

For the first quarter of fiscal 2026, the company forecast revenue of $338 million to $340 million, representing roughly 20% year-over-year growth, alongside a non-GAAP operating margin of 11% to 12%.

Monday.com continued to see momentum among larger customers, reporting a 45% increase in customers generating more than $100,000 in annual recurring revenue (ARR), bringing the total to 1,756. Customers with more than $50,000 in ARR accounted for 41% of total ARR, up from 36% a year earlier.

The company's net dollar retention rate stood at 110%, with a higher rate of 116% among customers with more than $50,000 in ARR. Monday.com also noted that its monday vibe product became the fastest offering in company history to surpass $1 million in ARR.

Despite the strong quarterly performance, foreign exchange headwinds weighed on margin expectations, with the company guiding for a non-GAAP operating margin of 11% to 12% for fiscal 2026, assuming a negative FX impact of 100 to 200 basis points.