MongoDB (NASDAQ:MDB) Announces Quarterly Earnings Results, Beats Estimates By $0.28 EPS

MongoDB (NASDAQ:MDB) announced its earnings results on Tuesday. The company reported $1.90 EPS for the quarter, beating analysts’ consensus estimates of $1.62 by $0.28, FiscalAI reports. The company had revenue of $771.77 million during the quarter, compared to analysts’ expectations of $735.01 million. MongoDB had a negative return on equity of 1.39% and a negative net margin of 1.12%.MongoDB’s revenue for the quarter was up 30.5% on a year-over-year basis. During the same period last year, the business posted $1.00 EPS. MongoDB updated its Q3 2027 guidance to 1.570-1.610 EPS and its FY 2027 guidance to 6.390-6.580 EPS.

Here are the key takeaways from MongoDB’s conference call:

• Q2 revenue reached $772 million, up 30% year over year, exceeding guidance and marking MongoDB’s fastest quarterly growth since fiscal 2024. Non-GAAP operating margin expanded to 24% from 15% a year earlier.
• Atlas revenue grew approximately 29% for the fifth consecutive quarter, supported by large enterprise customers, strong consumption, and a net ARR expansion rate that increased to 122% from 119% a year ago.
• Enterprise Advanced and other revenue grew approximately 30% year over year, with demand broad across financial services, public sector, and technology. MongoDB said the launch of search and vector search for self-managed deployments is opening additional AI and hybrid-cloud opportunities.
• AI adoption is gaining traction, with Voyage customers roughly doubling quarter over quarter for the second consecutive quarter, growing Atlas Vector Search usage, and increasing workloads from AI-native companies and frontier laboratories.
• Management raised fiscal 2027 guidance, now expecting revenue of $2.99 billion–$3.03 billion, Atlas growth of approximately 27%, Enterprise Advanced and other growth of approximately 11%, and operating-margin expansion of about 250 basis points. Full-year free-cash-flow conversion is expected at the upper end of the 80%–100% target range.

MongoDB Stock Down 4.2%

NASDAQ MDB opened at $434.21 on Wednesday. MongoDB has a 52 week low of $215.68 and a 52 week high of $473.10. The stock has a market capitalization of $34.92 billion, a PE ratio of -1,173.54, a price-to-earnings-growth ratio of 3,220.66 and a beta of 1.58. The firm has a 50 day moving average of $369.91 and a two-hundred day moving average of $322.27.

Insider Activity

In other news, Director Dwight A. Merriman sold 6,000 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $451.75, for a total value of $2,710,500.00. Following the sale, the director directly owned 452,896 shares in the company, valued at approximately $204,595,768. This trade represents a 1.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael J. Berry sold 5,000 shares of MongoDB stock in a transaction on Monday, June 15th. The stock was sold at an average price of $356.63, for a total transaction of $1,783,150.00. Following the sale, the chief financial officer directly owned 1,500 shares of the company’s stock, valued at approximately $534,945. This trade represents a 76.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 80,696 shares of company stock valued at $31,425,055 over the last quarter. Company insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MDB. Sivia Capital Partners LLC purchased a new stake in MongoDB during the second quarter worth approximately $329,000. C M Bidwell & Associates Ltd. boosted its holdings in MongoDB by 13.6% in the fourth quarter. C M Bidwell & Associates Ltd. now owns 543 shares of the company’s stock valued at $228,000 after purchasing an additional 65 shares in the last quarter. Hilltop Holdings Inc. purchased a new position in MongoDB in the fourth quarter valued at approximately $227,000. Concorde Asset Management LLC purchased a new position in MongoDB in the fourth quarter valued at approximately $222,000. Finally, Arete Wealth Advisors LLC acquired a new stake in MongoDB during the fourth quarter worth approximately $220,000. Hedge funds and other institutional investors own 89.29% of the company’s stock.

Analyst Ratings Changes

Several analysts have recently issued reports on MDB shares. Wells Fargo & Company increased their price target on shares of MongoDB from $375.00 to $475.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 25th. Bank of America upped their target price on shares of MongoDB from $390.00 to $450.00 and gave the stock a “buy” rating in a research note on Monday, June 8th. Morgan Stanley set a $519.00 target price on shares of MongoDB in a report on Wednesday. Tigress Financial raised their price target on shares of MongoDB from $430.00 to $515.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Finally, Mizuho boosted their price target on shares of MongoDB from $325.00 to $400.00 and gave the stock an “outperform” rating in a research note on Friday, May 29th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $463.13.

Trending Headlines about MongoDB

Here are the key news stories impacting MongoDB this week:

• Positive Sentiment: Results exceeded expectations: Revenue rose 30.5% year over year to $771.8 million, topping estimates of roughly $735 million, while adjusted EPS of $1.90 surpassed consensus near $1.61-$1.62. MongoDB fiscal 2027 second-quarter results
• Positive Sentiment: Atlas and AI demand remain key growth drivers: Atlas revenue increased approximately 29%, while enterprise and other revenue grew about 36%. Management cited record customer additions and increasing AI-related workloads. MongoDB earnings call highlights
• Positive Sentiment: Guidance was raised: Fiscal 2027 revenue is projected at approximately $2.99 billion to $3.03 billion, with the increase primarily tied to a stronger Atlas outlook of about 27% growth. Third-quarter revenue guidance of $756 million to $761 million and adjusted EPS guidance of $1.57 to $1.61 also exceed analyst estimates. MongoDB raises fiscal 2027 outlook
• Positive Sentiment: Analyst support improved: Monness Crespi & Hardt raised its price target to $460 and Cantor Fitzgerald lifted its target to $540, both maintaining bullish ratings. MongoDB analyst price-target changes
• Neutral Sentiment: The company remains focused on monetizing AI-native customers, but investors want evidence that AI demand can produce sustained acceleration beyond the current roughly 27%-30% Atlas growth range.
• Negative Sentiment: Strong results may not have been strong enough for the valuation: MongoDB had rallied substantially into earnings, leaving the stock vulnerable to profit-taking and a “sell the news” reaction.
• Negative Sentiment: Profitability and investment concerns weighed on sentiment: AI infrastructure and other capacity costs may pressure margins, while the third-quarter EPS outlook is below the $1.90 delivered in the latest quarter. Broader skepticism toward software stocks added to the selling pressure. MongoDB strong sales but stock declines

About MongoDB

MongoDB, Inc is a software company best known for developing MongoDB, a general-purpose, document-oriented database designed for modern application development. The company’s platform is built to support high-performance, scalable data storage and retrieval for use cases such as cloud-native applications, mobile backends, real-time analytics, and content management. MongoDB offers a mix of open-source software, commercial server distributions, and subscription-based services that include technical support, training and professional services.

The company traces its origins to 2007 when it was founded as 10gen by Dwight Merriman and Eliot Horowitz; it later adopted the MongoDB name and completed a public listing in 2017.