When a project manager creates a workflow, they are building the connective tissue of their organization. Monday.com (NASDAQ:MNDY) provides a visual operating system that turns these complex processes into manageable boards. The stock trades at $84.88 as of Sept. 11, 2026, and it has declined 56% over the past year as the market recalibrated expectations for its growth trajectory.

Our proprietary Hidden Gems scoring system assigns Monday.com an overall Superscore of 87 out of 100, placing it in the Strong category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39). An 87 Superscore places Monday.com in the Top ~2% of every company we score. This analysis serves as one research signal; investigating the company's operational execution against its valuation allows you to weigh the thesis yourself.

Scalable platform growth: Revenue reached $365 million in Q2 2026, a 22% year-over-year increase, highlighting the persistent demand for the company's flexible Work OS platform.

Operational profitability: The company achieved $119 million in net income during fiscal 2025, validating its transition from a high-burn start-up into a self-sustaining enterprise.

High-value customer momentum: The number of customers with over $100,000 in annual recurring revenue grew 37% year over year to 2,019 by Q2 2026, showing that enterprise clients increasingly rely on the platform.

Disciplined marketplace expansion: A robust ecosystem of 869 apps helps increase customer switching costs, as the software becomes deeply embedded in the specific workflows of global teams.

Intensifying platform competition: Major enterprise software providers continue to bundle work-management features directly into their suites, thereby commoditizing the stand-alone niche the company previously dominated.

Transition to consumption pricing: Moving to a seats-plus-credits model introduces near-term revenue volatility. At the same time the company manages the complex shift in how customers pay for its AI agents.

Elevated execution risk: A recent 20% workforce reduction signals that the company is still finding its footing while trying to balance aggressive AI investment with the need for immediate bottom-line performance.

AI feature integration drives product adoption, though enterprise segment scaling creates short-term margin pressure.

Revenue grew at a 50% CAGR from 2021 to 2025 as the platform evolved into a comprehensive Work OS.

Fiscal 2025 delivered $119 million in net income and $334 million in operating cash flow.

Operating leverage improved significantly, with operating margins shifting from -41% in 2021 to near break-even in 2025.

Management demonstrates transparency in KPI reporting and has successfully navigated a difficult organizational restructuring.

The company relies on a legacy interface layer that faces stiff competition from natively agentic platforms.

The stock trades at a trailing P/E of 30.59, reflecting market expectations for ongoing profit expansion.

This stock warrants a closer look if...

You want exposure to the best small-cap tech stocks that have successfully bridged the gap to GAAP profitability.

You believe that the company's deep ecosystem of third-party apps will keep customers locked into its platform for the long term.

You may want to keep researching before buying if...

You are uncomfortable with the risks inherent in transitioning to a new seat-and-credit pricing model.

You worry that major competitors will eventually absorb the company's core workflow utility into broader software suites.

The Superscore provides a data-driven reference point, but it should not replace your own due diligence regarding your specific financial goals and risk tolerance.

So here's the thing about Monday.com. The stock is down 55.7% over the past year, and most people see that number and assume something broke. Something usually broke in such cases, prompting steep price drops. Not this time, or at least not the thing you'd expect.

Revenue growth slowed from 27% to 22%. The slower rate is still a figure many companies would frame and hang in their headquarters lobbies. There are also some securities lawsuits floating around, which is never fun, and the company changed how it charges customers right in the middle of everything. Markets hate surprises, and that was three of them stacked up.

But the operations tell a different story. Net dollar retention was 109%, indicating that existing customers expanded their spending despite the pricing transition. You've seen the 22% top-line growth, and it's paired with expanding operating margins.

And management is buying. Monday.com repurchased about 7.27 million shares for roughly $553 million while the stock was in free fall. You can read that two ways, and both are fine by me: either the leaders think it's cheap, or they're actively supporting the stock price. Companies that are quietly panicking tend to hoard cash instead.

Monday.com's AI transition is the variable most likely to determine outcomes over a five-year horizon. AI revenue doubled quarter over quarter and now makes up 17% of net new ARR (annual recurring revenue). They're buying OneAI to add voice features. And they already rebuilt the pricing model so they can charge for all of it. Yep, the same move that's hurting revenue growth right now has set the company up for a smooth shift to an AI -powered strategy.

The question for the next five years is whether AI-driven expansion can reaccelerate Monday.com's growth before competitive bundling from larger software suites compresses pricing power. Both outcomes remain plausible. However, I'm confident in management's ability to keep up with changing market conditions.

I wouldn't exactly bet the farm on Monday.com today, but it's a promising high-growth stock with real ties to the ongoing AI boom. This stock should outperform as the AI thesis plays out.

The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.

Before you buy stock in Monday.com, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Monday.com wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,341,724!*

Now, it's worth noting Stock Advisor's total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

*Stock Advisor returns as of September 12, 2026.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monday.com. The Motley Fool has a disclosure policy.

monday.com's 2026 Outlook: Scaling High-Value Enterprise Client Momentum was originally published by The Motley Fool