MongoDB (MDB) shares experienced a meteoric rise, surging over 30% in Wednesday’s trading session. This impressive rally followed the database software juggernaut’s release of fiscal results that not only exceeded expectations but also included a robust forecast, signaling continued momentum.
Here’s a closer look at how MongoDB performed relative to LSEG consensus estimates:
- Earnings per share: $1.00 adjusted vs. an expected 66 cents.
- Revenue: $591 million, surpassing the forecast of $556 million.
The company’s top-line figure represents a healthy 24% year-over-year increase for the fiscal second quarter, which concluded on July 31. While MongoDB still reported a net loss of $47.04 million, or 58 cents per share, it marks an improvement from the $54.5 million loss, or 74 cents per share, recorded in the same period last year. This narrowing loss suggests increasing efficiency and a move towards profitability.
A key driver of MongoDB’s success continues to be its cloud database service, MongoDB Atlas. Atlas sales witnessed a substantial 29% year-over-year growth, underscoring the increasing adoption of cloud-based solutions by businesses of all sizes.
Moreover, MongoDB reported adding over 5,000 new customers year-to-date. According to the company, this represents “the highest ever in the first half of the year,” showcasing the growing demand for its database solutions.
“We think that’s a good sign of future growth because a lot of these companies are AI native companies who are coming to MongoDB to run their business,” CEO Dev Ittycheria stated in a recent interview.
MongoDB’s strategic shift towards focusing on larger enterprise deals, while strategically scaling back on small and medium-sized businesses, appears to be yielding significant results. Ittycheria noted that this strategic pivot has been “really paying dividends.”
“The workloads we started acquiring last year are really starting to grow meaningfully and grow faster than we expected, which is driving Atlas’ growth,” Ittycheria explained.
Looking ahead to the fiscal third quarter, MongoDB anticipates adjusted earnings per share in the range of 76 to 79 cents and revenue between $587 million and $592 million. These projections comfortably exceed Wall Street’s consensus estimates of 71 cents per share and $583 million in sales, according to LSEG data.
For the full fiscal year 2026, MongoDB projects revenue to fall between $2.34 billion and $2.36 billion, with adjusted earnings per share expected to range from $3.64 to $3.73. Analysts, in contrast, were anticipating $2.29 billion in revenue and earnings of $3.10 per share, highlighting management’s confidence in their growth trajectory. This bullish outlook represents a significant upward revision from their June guidance, solidifying investor confidence in MongoDB’s long-term prospects.
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