How Monday.com Stock Gained 20.4% In July

Shares of Monday.com (NASDAQ: MNDY) rose 20.4% in July 2026, according to data from S&P Global Market Intelligence. The workflow-automation specialist mainly followed broad growth-stock vibes up and down, but sprinted ahead in the last few days of the month thanks to a radical corporate restructuring.

A volatile month in three acts

Monday.com's July journey had three distinct legs:

• The stock posted a 20% gain from June 30 to July 13. Monday.com had no market-moving news of its own in this period. Instead, the volatile stock amplified a market rotation into enterprise software investments.
• On July 14, IBM (NYSE: IBM) sparked another round of Street skepticism in the software sector with a weak preliminary earnings report. Big Blue said that data center construction is taking budgets away from software sales these days, and that's bad news for app development and project management experts such as Monday.com. A 25% price drop followed over the next week, erasing the gains of early July.
• The market narrative started to turn as the Magnificent 7 companies reported earnings between July 22 and July 29. IBM's data center warning proved real, but the hyperscalers still reported strong software and services results. Monday.com accelerated its rebound by announcing a deep restructuring on July 22, and investors applauded the marginwidening effects of a 20% workforce reduction. Though tucked away in an SEC filing, the announcement helped Monday.com climb the same 20% hill it had crested earlier in the month.

Image source: Getty Images.

What July (and early August) means for investors

The resulting July jump deserves some additional context. Monday.com reported Q2 2026 results in the early morning hours of Aug. 10, exceeding analyst estimates across the board while reaffirming the guidance it offered alongside the restructuring.

The stock opened 11% lower on the news, removing some of last month's gains. I called Monday.com "volatile" earlier, and I meant it.

In the report, co-founders and co-CEOs Roy Mann and Eran Zinman said that Monday.com's strategy is working well. The restructuring wasn't meant to fix a broken business plan, but to "capture the largest opportunity we have ever seen in software" with a leaner and more effective workforce.

Cynics may see executive spin there, but it's hard to argue with the numbers. Revenues rose 22% year over year, margins are indeed widening (adjusted for the short-term layoff costs), and Monday.com's customers are growing larger. For instance, 114 clients now represent more than $500,000 of annual recurring revenue (ARR), a 68% surge from the year-ago period. As you can see, Monday.com's business is in good shape.

I expect the volatility to continue, but Monday.com is in a good position. Financial and business metrics are moving in the right direction. The company is growing, and the restructuring was not an act of panic. It's still among my favorite software-as-a-service stocks to buy in the summer of 2026.

Anders Bylund has positions in International Business Machines. The Motley Fool has positions in and recommends International Business Machines and Monday.com. The Motley Fool has a disclosure policy.