MongoDB's Stellar Q2 Performance Fueled by AI-Driven Demand for Atlas Cloud Database

Database firm MongoDB's shares rally 31% as AI apps fuel demand for Atlas cloud database

Shares of MongoDB surged about 31% on Wednesday after the database software firm said its Atlas cloud service was seeing increasing usage as more customers build AI applications on the platform. MongoDB was set to add more than $5.2 billion to its $17.51 billion market capitalization. Generative AI apps process vast amounts of unstructured data, driving demand for cloud databases such as Atlas that can quickly retrieve information and also power chatbots, recommendations and search tools. As companies build and deploy more AI features, usage of AI-ready databases and related services has been rising. This has translated into faster revenue growth for platforms that integrate with major clouds and AI tools. "We are encouraged by MongoDB's strong go-to-market momentum across startup and enterprise customers, thanks to the reallocation of market resources and product enhancements in artificial intelligence," said Luke Yang, analyst at Morningstar. Analysts also said reallocation of sales resources to focus on enterprise clients will drive usage from MongoDB's biggest customers. The company raised its annual adjusted profit forecast to between $3.64 and $3.73 per share, from its prior forecast of $2.94 to $3.12 per share. It expects revenue to be between $2.34 billion and $2.36 billion in the fiscal year ending January, up from its prior forecast of $2.25 billion to $2.29 billion. Both revenue and profit forecasts were above Wall Street estimates. More than 15 analysts raised their price target for the stock. The average rating for the company's shares are "Buy", with a median price target of $325. Its shares trade 58.6 times the profit estimates, compared with 140.91 for Snowflake and 32.85 for Oracle.

MongoDB Inc Surges 29.85% In Pre-Market Trading: What's Going On? - MongoDB (NASDAQ:MDB)

MongoDB Inc. MDB jumped 30.40% in pre-market trading on Wednesday. Check out the current price of MDB stock here. Strong Atlas Revenue Growth Drives 24% Year-Over-Year Total Revenue Increase According to Benzinga Pro data, after reporting second-quarter results that exceeded analyst expectations and prompted the company to raise full-year guidance, the database software company surged to $279.50 in the early trading session. MDB posted total revenue of $591.4 million, up 24% year-over-year, with MongoDB Atlas revenue accelerating 29% and representing 74% of quarterly revenue. Customer Growth Reaches Record Pace Amid AI Adoption MongoDB also added 2,800 customers during the quarter, bringing total customers to over 59,900 as of July 31. The company added over 5,000 customers year-to-date, marking the highest first-half customer additions in company history. See Also: Kohl's Gears Up For Q2 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts CEO Dev Ittycheria highlighted the company's continued momentum in the earnings release, saying, "These results reflect the strength of MongoDB's platform and our flexible document model. Many of our recently added customers are building AI applications, underscoring how our value proposition is resonating in the AI era." Profitability Metrics Show Significant Improvement Non-Generally Accepted Accounting Principles (GAAP) net income reached $87.2 million or $1.00 per share, compared to a non-GAAP net loss of $59.0 million in the prior year period. The New York-based scalable platform has free cash flow turned positive at $69.9 million versus negative $4.0 million year-over-year. The company raised full-year fiscal 2026 revenue guidance to $2.34-$2.36 billion and non-GAAP earnings per share to $3.64-$3.73. Jim Cramer Links MongoDB Success to Palantir Potential Television host Jim Cramer commented on MongoDB's strong performance in a Tuesday X post, emphasizing the significance of the earnings beat. "Bears didn't see Mongo coming!" Cramer wrote, highlighting the database company's unexpected strength and solid execution. MDB has traded between $140.94 and $370.00 over the past year. The company is currently valued at $17.51 billion in market capitalization, with an average daily trading volume of 2.28 million shares. Benzinga's Edge Stock Rankings indicate that MDB has a positive price trend across all time frames. Know how its momentum lines up with other well-known names. Read Next: Dave Ramsey Rips Into 'Passive Income' Real Estate Hype: Says Landlords Are Being Sold TikTok Dreams Photo: T Schneider / Shutterstock MDBMongoDB Inc$280.2130.7%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum20.54Growth51.12QualityN/AValue50.90Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

MongoDB Shares Continue To Surge Following Stellar Earnings - MongoDB (NASDAQ:MDB)

MongoDB Inc MDB shares are trading higher Thursday, continuing a rally that began after the company posted impressive second-quarter financial results that beat Wall Street expectations. Here's what investors need to know. What To Know: The database software provider announced significant revenue growth and an increase in its full-year earnings forecast, signaling strong momentum and prompting a wave of analyst upgrades. For the second quarter, MongoDB reported a 24% year-over-year revenue increase to $591.4 million, beating the consensus estimate of $552.46 million. Adjusted earnings per share came in at $1.00, beating the anticipated 66 cents. The company's cloud-based offering, Atlas, was a key driver of the growth, with revenues from the platform climbing 29% and now accounting for 71% of total revenue. Looking ahead, MongoDB raised its full-year revenue guidance to a range of $2.34 billion to $2.36 billion and boosted its adjusted earnings per share forecast to between $3.64 and $3.73. This optimistic outlook is fueled by strong customer growth, with the company adding over 5,000 new customers year-to-date. The stellar performance and bullish forecast have been met with enthusiasm from the analyst community. Numerous firms, including Piper Sandler, Needham and RBC Capital, have raised their price targets on the stock, citing the accelerating adoption of Atlas and the company's expanding role in artificial intelligence applications. Price Action: According to data from Benzinga Pro, MongoDB shares are trading higher by 7.41% to $317.61 Thursday. The stock has a 52-week high of $370 and a 52-week low of $140.94. Read Also: Snowflake Stock Is On Fire Thursday: Here's Why How To Buy MDB Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in MongoDB's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock MDBMongoDB Inc$318.837.82%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum20.47Growth51.18QualityN/AValue51.48Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

MongoDB Revenue Jumps 24% in Fiscal Q2 | The Motley Fool

MongoDB (MDB -1.76%), a leading provider of general-purpose database software built around its document-based model, announced earnings for the quarter ended July 31, 2025, on August 26, 2025. The company delivered results that exceeded prior guidance, reporting $591.4 million in GAAP revenue versus the previous forecast of $548-$553 million, and non-GAAP earnings per share of $1.00, compared to $0.70 for Q2 FY2025. These outcomes reflected robust growth in MongoDB Atlas, its cloud database offering, as well as strong free cash flow and customer additions, while gross margins (GAAP) slipped modestly. Overall, Q2 FY2026 showed acceleration in platform adoption and operating leverage, prompting management to raise full-year FY2026 non-GAAP revenue and profit projections. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2026 earnings report. MongoDB helps businesses store and manage data using what is known as a "document database," which is a way to keep data organized and accessible by grouping it in flexible records. Unlike older, relational databases that use rigid tables, document databases are easier to adapt to new types of digital applications and workflows, making them popular among developers. The company's growth currently centers on its cloud service, Atlas, while its traditional on-premises product, Enterprise Advanced, continues to decline as more customers move to cloud-based solutions. The company focuses on platform differentiation -- standing out from competitors through its flexible data model -- market expansion, integrating artificial intelligence features, and maintaining customer satisfaction through continued investments in developer tools and customer support. During the period, MongoDB posted GAAP revenue of $591.4 million, reflecting a 24% increase year-over-year and coming in above its own prior forecasts. Non-GAAP earnings per share were $1.00, up from $0.70 in Q2 FY2025. These topline gains were fueled by the company's Atlas cloud platform, which accounted for 74% of total revenue and grew 29% year-over-year. This shift signals strong customer adoption of Atlas, as cloud migration continues in the data management sector. Customer numbers set new highs, with 2,800 customers added and net additions surpassing 5,000 in the first half of FY2026. The total customer base reached 59,900 as of July 31, 2025, up 18% from 50,700 as of July 31, 2024. Atlas-specific customers rose to 58,300, compared to around 49,200 as of Q2 FY2025. The number of customers bringing annual recurring revenue (ARR) above $100,000 reached 2,564, growing at a stable 17% year-over-year pace in Q1 FY2026. Gross margin, which represents what is left from revenue after accounting for the direct costs to deliver products and services, was 74% on a Non-GAAP basis -- down one percentage point from the prior year. This slight dip is attributed to the rising share of cloud workloads and the impact of the Voyage acquisition. The on-premises Enterprise Advanced product made up only 21% of subscription revenue, continuing its trend of decline from 24% in Q1 FY2026, Non-GAAP income from operations reached $86.8 million, expanding the margin to 15%. Free cash flow turned positive at $69.9 million, rising from a negative $4.0 million in Q2 fiscal year 2025. The company spent $194.4 million on share buybacks, purchasing over 1 million shares, and closed the quarter with $2.3 billion in cash and short-term investments. On the product front, MongoDB expanded its suite of artificial intelligence-oriented features, adding new models from its Voyage AI unit and announcing partnerships with AI development ecosystem partners, broadening its offering for customers developing next-generation applications. Key risks or areas of attention include continued margin compression, heightened competition, and a flat trend in the direct sales customer segment. Shareholders should also note that service revenue (consulting and training) grew by 33% year-over-year (GAAP), which points to increasing customer complexity and engagement but is a much smaller portion of total revenue. Management raised its outlook for the next quarter and full year. For the third quarter of fiscal 2026, expected revenue is $587-$592 million, with non-GAAP net income per share forecasted at $0.76-$0.79. Full-year revenue guidance for FY2026 moved up to $2.34-$2.36 billion, and non-GAAP earnings per share guidance increased to $3.64-$3.73 and reflect management's confidence in maintaining growth and profitability momentum. Going forward, investors should monitor the mix between cloud and legacy business lines, observe any further changes in gross margin linked to cloud and AI investments, and watch for evidence that the company can further expand among large enterprise customers even as direct sales growth plateaus. Competitive pressures from other database providers and public cloud platforms will also remain an ongoing factor in shaping business performance and market share.

MongoDB Ups Outlook on Strong Sales | The Motley Fool

MongoDB(MDB -1.76%) reported its fiscal second quarter 2026 results (period ended July 31, 2025) on August 26, 2025, with revenue of $591 million, up 24% year over year (non-GAAP), and Atlas revenue accelerating to 29% year over year (74% of total revenue). Non-GAAP operating income reached $87 million (15% margin), and the company raised its full-year revenue guidance by $70 million for fiscal 2026 as Atlas consumption and customer growth outperformed expectations. Key insights below address Atlas growth dynamics, product differentiation in AI and search, and disciplined margin expansion, each with unique investment implications. Atlas, the fully managed multi-cloud database, contributed 74% of total revenue (non-GAAP) versus 71% a year ago and 72% in fiscal first quarter 2026, underscoring steady cloud adoption. The company added approximately 2,800 net new customers, bringing the total to 59,900. "quarter with over 59,900 customers. Atlas performance was strong, accelerating to 29% year over year growth up from 26% in Q1. Our customer additions were also robust. We have added over 5,000 customers over the last two quarters. These results reflect the strength of MongoDB's platform." -- Dev Ittycheria, President and CEO Validating MongoDB's upmarket move and platform stickiness. MongoDB natively integrates search, vector search, and embeddings, enabling hybrid use cases across structured and unstructured data -- a differentiator as competitors like Postgres lack similar performance at scale. Notable customer wins in AI applications, such as a leading electric vehicle company and DevRev, illustrate these capabilities' enterprise traction, although management notes AI workloads remain an immaterial revenue driver so far. "MongoDB has redefined what's core for the database by natively including capabilities like search, vector search, embeddings, and stream processing. Comparing MongoDB to another database like Postgres is not an apples-to-apples comparison. Take a global e-commerce application that manages inventory and order data while enabling product discovery through sophisticated search across millions of SKUs. The choice for this application, not between MongoDB or Postgres, is between MongoDB or Postgres plus other offerings like Pinecone, Elastic, and Cohere, for embeddings. MongoDB's complete solution allows developers to spend less time stitching together and maintaining a patchwork of disparate systems and more time building differentiated functionality that drives the business forward." -- Dev Ittycheria, President and CEO The integration of advanced data and AI features into a unified platform enhances MongoDB's value proposition, positioning it as foundational infrastructure for next-generation applications and reducing customer reliance on fragmented tech stacks. Non-GAAP operating margin improved to 15% from 11% year over year on higher-than-expected revenue and cost discipline, despite investment in R&D and developer outreach. The company completed a modest restructuring impacting less than 2% of employees, reallocating spend to higher ROI opportunities. "We are very pleased with our stronger than expected margin results, which benefited mainly from our revenue outperformance. Additionally, I'd like to provide a little context on the modest restructuring we undertook in the quarter. It impacted less than 2% of employees and resulted in approximately $5 million of one-time charges which we have excluded from our non-GAAP financials. This action is consistent with the key priorities I outlined for you last quarter to identify ways to both reallocate existing spend to higher ROI opportunities and be more disciplined about incremental spending. We are focused on running an efficient, scalable business that supports growth in revenue and profitability to drive long-term shareholder value." -- Mike Gordon, CFO Greater operating leverage and proactive resource allocation enable MongoDB to fund growth initiatives while delivering expanding margins, reinforcing the company's path toward durable profitability and shareholder value creation. Management raised full-year revenue guidance to $2.34 billion to $2.36 billion for fiscal 2026, an increase of $70 million, and increased non-GAAP operating income guidance by $44 million for fiscal 2026, now targeting $321 million to $331 million. Atlas is expected to sustain mid-20% year-over-year growth in the second half, with non-Atlas subscription revenue anticipated to decline in the mid-single digits year over year, an improvement over prior expectations. Operating margin guidance (non-GAAP) was raised to a high-end of 14% from 12.5% previously, reflecting both top-line outperformance and ongoing investment discipline.

MongoDB: Why Are Shares Jumping in Premarket Trading? | Investing.com UK

MongoDB (NASDAQ:MDB) shares are experiencing a dramatic surge in premarket trading, jumping over 31% to $281.50 as of early Wednesday morning, following the company's impressive second-quarter fiscal 2026 earnings results released after market close on Tuesday. The database platform company delivered a significant earnings beat, posting adjusted earnings per share of $1.00 versus the Zacks Consensus Estimate of $0.64, representing a massive 56.25% earnings surprise. Revenue also exceeded expectations at $591.4 million, surpassing estimates by 7.32% and marking a robust 24% year-over-year growth rate that has investors excited about the company's AI-driven momentum. MongoDB's second-quarter results exceeded expectations across all key metrics, with the company posting adjusted earnings of $1.00 per share compared to analyst expectations of $0.64. This represents the fourth consecutive quarter where MongoDB has surpassed consensus EPS estimates, demonstrating consistent operational execution. The 56.25% earnings surprise builds on the previous quarter's 53.85% beat, indicating strengthening fundamentals and improving profitability trajectory. Revenue performance was equally impressive, with total revenue reaching $591.4 million for the quarter ended July 31, 2025, representing 24% year-over-year growth and beating the Zacks Consensus Estimate by 7.32%. MongoDB Atlas, the company's cloud database service, was a standout performer with revenue growing 29% year-over-year and representing 74% of total quarterly revenue. The acceleration in Atlas growth from previous quarters signals strong demand for MongoDB's cloud-native database solutions, particularly as enterprises increasingly adopt AI applications. The company's customer acquisition momentum remains robust, with MongoDB adding 2,800 new customers during the quarter, bringing the total customer count to over 59,900 as of July 31, 2025. Notably, the company added over 5,000 customers year-to-date, marking the highest first-half customer additions in company history. CEO Dev Ittycheria emphasized that many recently added customers are building AI applications, highlighting MongoDB's emerging role as a critical component in the AI infrastructure stack. Despite the strong premarket surge, MongoDB shares have underperformed the broader market year-to-date, declining 6.2% compared to the S&P 500's 9.5% gain, creating an attractive entry point for investors following the earnings beat. The stock closed at $214.34 on Tuesday before the earnings announcement, and the premarket jump to $281.50 represents a significant revaluation based on the company's demonstrated execution and raised guidance. With a market capitalization of $17.51 billion and trading at approximately 74 times forward earnings, the valuation reflects investors' confidence in MongoDB's long-term growth trajectory. MongoDB management raised both top and bottom-line guidance for the remainder of fiscal 2026, signaling confidence in sustained momentum. The company now expects full-year revenue between $2.34 billion and $2.36 billion, with non-GAAP earnings per share projected between $3.64 and $3.73. Third-quarter guidance also came in strong, with revenue expected between $587.0 million and $592.0 million, and non-GAAP EPS between $0.76 and $0.79. The combination of accelerating Atlas growth, strong customer acquisition, improving profitability metrics, and raised guidance positions MongoDB favorably for continued outperformance. The company's strategic focus on AI applications and its "Run Anywhere" strategy, including recent commitments to achieve FedRAMP High and DoD Impact Level 5 authorizations, should drive further enterprise adoption and revenue growth in coming quarters.

MongoDB surpasses analyst expectations with robust growth

MongoDB, Inc. has demonstrated robust top-line performance, driven by strong demand across various segments and beating analysts' revenue estimates for seven consecutive quarters. The company's revenue growth highlights its operational momentum, with notable increases in enterprise business and cloud services. Strategic initiatives, including AI collaborations and innovations in connected car development, have further bolstered its market position. As the database platform industry continues to expand, MongoDB's significant presence in key markets supports sustained growth and profitability. MongoDB, Inc. stands as a prominent provider of modern database platforms, catering to over 54,500 customers globally as of January 31, 2025. Its premier cloud service, MongoDB Atlas, accounts for 70% of the company's annual revenue, underscoring its extensive use for scalable and adaptable data management solutions. The company fosters innovation through regular product updates and recent acquisitions focused on artificial intelligence, continually improving performance, security, and developer productivity across various industries. The breakdown of net sales reveals that subscription sales constitute 96.7% of the total, while service sales make up the remaining 3.3%. By the end of January 2024, MongoDB had grown its customer base to over 47,800. Geographically, net sales are distributed with 60.4% coming from the Americas, 27.9% in Europe/Middle East/Africa, and 11.7% from the Asia-Pacific region. The company has around 5,686 employees. MongoDB Atlas and AWS are transforming connected car developments by providing automotive enterprises with a highly scalable, secure, and AI-ready data platform. Using MongoDB's document data model, manufacturers easily ingest, model, and retrieve massive volumes of telemetry from IoT-enabled vehicles, guaranteeing interoperability through Vehicle Signal Specification (VSS) compliance. AWS tools such as IoT Greengrass, SageMaker, and Bedrock integrate seamlessly with Atlas, powering smart diagnostics, predictive maintenance, and real-time driver assistance. Atlas Vector Search accelerates context-aware data retrieval for in-vehicle AI agents, driving innovation across fleet management, safety, and in-car experience applications. MongoDB has significantly strengthened its foundation for AI applications through a series of targeted product innovations and an expanded partner ecosystem. Notable advances include the integration of Voyage AI's industry-leading embedding and reranking models, enabling more accurate, context-aware data retrieval for AI workflows. The introduction of the MongoDB Model Context Protocol (MCP) server allows AI agents to interact with real-time data and tools using natural language, greatly simplifying development. Expanded partnerships with AI innovators, improved interoperability with leading AI frameworks, and successful customer deployments demonstrate MongoDB's pivotal role in the evolving AI landscape. MongoDB has posted a solid revenue CAGR of 31.9% over FY 22-25, reaching $2bn, driven by primarily fueled by increased adoption of its cloud-based database services (DBaaS), rapid growth in demand for data infrastructure to support AI and digital transformation, and broadening of its enterprise customer base across key verticals. EBIT declined at a CAGR of 9.3% to minus $216m, with margins expanding from minus 33.1% to minus 10.8% in FY 25. Net income decreased at a CAGR of 25.1% to minus $129m. Consistent growth in net income led to an increase in FCF over FY 22-25, reaching $235m in FY 25 from $146m in FY 22. CFO also rose from $7m to $150m. Moreover, total cash and short-term investments increased from $1.8bn to $2.3bn in FY 25. Total debt declined from $1.2bn to $74m over the same period. Its gearing therefore improved from 1.9x in FY 22 to 0.02x in FY 25. In comparison, Wuhan Dameng Database Company Limited, a global peer, reported a revenue CAGR of 12% to $1bn over FY 21-24. EBIT declined at a CAGR of 10.4% to $343m. Net income decreased at a CAGR of 6.6% to $362m. Over the past year, the company's stock has delivered negative returns of around 11.8%. In comparison, Wuhan Dameng delivered higher returns of around 61.8% over the same period. MongoDB is currently trading at a P/E of minus 78.4x, based on the FY 26 estimated EPS of minus $2.8, which is higher than its 3-year historical average of minus 120.9x but lower than the Wuhan Dameng's P/E of 56.8x. Likewise, in terms of EV/EBIT, the company is currently trading at 54.7x, based on the FY 26 estimated EBIT of $280.6m, which is lower than its 3-year historical average of 130.7x, and that of Wuhan Dameng (52.7x). MongoDB is monitored by 40 analysts, with 30 having 'Buy' ratings and 10 having 'Hold' ratings, with an average target price of $272.2, implying 24.6% upside potential from its current price. Looking ahead, analysts anticipate revenue CAGR of 15.9% over FY 25-28, reaching $3.1bn in FY 28. In addition, analysts expect EBIT CAGR of 19.9% to $515m, with margin expanding by 160bp to 16.5%. Net income is estimated to increase at a CAGR of 7.5% to minus $102m. Likewise, analysts estimate an EBIT CAGR of 28.1% and a net profit CAGR of 27.5% for Wuhan Dameng over FY 24-27. Overall, the company demonstrates strong potential for growth and innovation, particularly through its cloud-based services and strategic advancements in AI. Despite current financial challenges, the company's consistent product updates, expanding customer base, and improved financial metrics indicate a promising future. However, MongoDB faces geopolitical and trade uncertainties, interest rate volatility, and potential slowdowns in Atlas consumption, scrutiny on valuations, and delayed returns from AI investments. These factors contribute to investor uncertainty and pressure on the company's financial planning.