MongoDB shares surged more than 25% on Tuesday after the company blew past Wall Street’s third‑quarter expectations and raised its full‑year outlook as its cloud database platform continues to gain momentum with enterprise customers.
The database‑software firm reported adjusted earnings of $1.32 per share on revenue of $628 million, comfortably above the $0.80 per share and $592 million analysts had forecast, according to LSEG data. Revenue grew 19% year‑over‑year.
Atlas, MongoDB’s fully managed, multi‑cloud database‑as‑a‑service offering, expanded 30% from a year ago and now accounts for roughly 75% of total quarterly revenue. The company said it ended the period with more than 60,800 Atlas customers and expects platform revenue to grow 27% in the current fiscal quarter.
“Q3 was an exceptional quarter driven by our continued go‑to‑market execution and the broad‑based demand we’re seeing across businesses,” said CEO Chirantan “CJ” Desai during his first earnings call as chief executive. Desai took over after the long‑time leader, Dev Ittycheria, stepped down in November following an 11‑year tenure that included MongoDB’s IPO.
Desai highlighted what he called a “once‑in‑a‑lifetime” opportunity as artificial‑intelligence, cloud and data trends converge at a true inflection point. He told investors the company will double down on deepening customer relationships and accelerating product innovation, especially around AI‑enabled workloads.
Riding those tailwinds, MongoDB upgraded its full‑year revenue guidance to a range of $2.434 billion–$2.439 billion, up from the prior $2.34 billion–$2.36 billion outlook. The revision reflects stronger‑than‑expected Atlas growth and expanding demand for AI‑driven data pipelines.
Analysts at Bernstein lifted their price target to $452, betting the stock will keep benefitting from accelerating growth while many peer software firms grapple with slower adoption cycles. “We expect strong consumption demand, upside from AI, and benefits from an easing interest‑rate environment to continue driving re‑rating upside in the near term,” they wrote.
MongoDB’s stock has risen more than 40% year‑to‑date, positioning it as one of the standout performers in the cloud‑infrastructure space.
Technical and market context: Atlas distinguishes itself by offering native multi‑cloud support, allowing customers to run workloads across AWS, Azure and Google Cloud without data lock‑in. Recent product releases include serverless workloads, real‑time analytics, and tighter integration with major AI frameworks such as PyTorch and TensorFlow, enabling developers to ingest, store and query massive unstructured datasets with low latency. These capabilities are critical as enterprises look to embed generative‑AI models directly into operational pipelines.
Competitive pressure is intensifying, with rivals like Amazon’s DocumentDB, Microsoft’s Azure Cosmos DB and emerging open‑source alternatives stepping up feature sets. However, MongoDB’s developer‑centric ecosystem, strong community adoption, and expanding partner network give it a defensible moat, especially for organizations seeking a unified data platform that can handle transaction processing, analytical workloads and AI model serving in a single architecture.
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