MongoDB (MDB) Stock: Database Platform Soars 15% on Earnings Blowout

MongoDB, Inc., MDB

The company posted revenue of $628 million. That marked a 19% jump from last year. Wall Street had expected just $592 million.

The earnings story looked even better. MongoDB reported adjusted EPS of $1.32 versus analyst estimates of 80 cents. Thats a 66% beat on the bottom line.

New CEO Chirantan “CJ” Desai pointed to strength in the large enterprise segment. The company saw growing demand across the Americas, Europe, the Middle East and Africa. Desai took over as CEO in November after Dev Ittycherias 11-year tenure.

Cloud Business Powers Growth

Atlas, MongoDB‘s cloud database service, accelerated to 30% year-over-year growth. That metric stood out as the quarter’s headline number.

The self-service business delivered strong results. Digital natives, AI startups, and developers worldwide are choosing MongoDBs platform for new projects.

MongoDB reported a net loss of $2.01 million for the quarter. That‘s 2 cents per share. Last year’s Q3 saw a bigger loss of $9.78 million, or 13 cents per share.

The company strips out stock compensation, intangible asset amortization, and income taxes to reach adjusted earnings. These adjustments explain the positive adjusted EPS despite the reported loss.

Guidance Crushes Forecasts

MongoDB expects fourth-quarter revenue between $665 million and $670 million. That guidance beat what analysts had modeled for the period.

The company raised its full-year fiscal 2026 outlook to $2.434-2.439 billion. The previous range was $2.34-2.36 billion. Analysts at FactSet expected $2.36 billion.

Billings came in at $687.3 million. Thats up 34.4% year over year. The billings metric shows cash collected upfront from customers.

The customer base grew to 62,500. MongoDB added 2,600 customers sequentially. That growth rate matched recent quarters and beat historical patterns.

Margins Show Improvement

Free cash flow margin improved to 22.3% from 11.8% last quarter. Operating margin moved to negative 2.9% from negative 5.3% a year ago.

Adjusted operating income hit $123.1 million. Analysts expected $70.72 million. The company achieved a 19.6% margin, beating forecasts by 74%.

MongoDB trades at a $27.04 billion market cap. The stock jumped to $356.77 after the release, gaining 8.4% initially.

Desai said the company executed its plan to drive profitable growth. The results showed meaningful margin outperformance across the board. Revenue has grown at a 33.7% annual rate over five years.

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