MongoDB (MDB) Stock Rallies as Database Company Crushes Q3 Earnings

TLDR

• MongoDB stock jumped 15% in after-hours trading following third-quarter earnings that beat Wall Street expectations with revenue of $628 million, up 19% year over year.
• The company reported adjusted earnings per share of $1.32, crushing analyst estimates of 80 cents per share.
• Fourth-quarter revenue guidance came in at $665-670 million, beating analyst expectations and showing continued growth momentum.
• MongoDB raised full-year fiscal 2026 guidance to $2.434-2.439 billion, up from previous guidance of $2.34-2.36 billion.
• The company added 2,600 new customers in the quarter, bringing total customer count to 62,500, while Atlas growth accelerated to 30% year over year.

MongoDB delivered a beat on both the top and bottom lines for its third quarter, sending shares soaring 15% in after-hours trading Monday.

The database platform reported revenue of $628 million for the quarter. That marked a 19% increase from the same period last year. Wall Street had expected $592 million.

The earnings per share story was even better. MongoDB posted adjusted EPS of $1.32. Analysts had penciled in just 80 cents per share.

MongoDB, Inc., MDB

New CEO Chirantan “CJ” Desai told CNBC the company saw strong growth in its large enterprise segment during Q3. He pointed to rising demand across the Americas, Europe, the Middle East and Africa. Desai took over from Dev Ittycheria in November after the former CEO’s 11-year run.

Atlas Drives Growth Momentum

The self-service business turned in exceptional results, according to Desai. Digital natives, AI-focused startups, and developers worldwide are building on MongoDB’s platform.

Atlas, the company’s cloud database service, accelerated to 30% year-over-year growth. That metric stood out as a key driver of the quarter’s performance.

MongoDB reported a net loss of $2.01 million during the quarter. That worked out to a loss of 2 cents per share. The year-ago quarter saw a larger net loss of $9.78 million, or 13 cents per share.

The company adjusts its earnings to exclude stock-based compensation, amortization of intangible assets, and income taxes. These adjustments explain the gap between the reported loss and the positive adjusted earnings.

Guidance Tops Expectations

Looking ahead to the fourth quarter, MongoDB expects revenue between $665 million and $670 million. That guidance came in above what analysts were modeling.

The company also bumped up its full-year fiscal 2026 outlook. The new range of $2.434 billion to $2.439 billion tops the previous guidance of $2.34 billion to $2.36 billion. Analysts polled by FactSet had expected $2.36 billion.

Billings hit $687.3 million in the quarter. That represented a 34.4% jump from the same period last year. The billings number matters because it shows how much cash the company collected from customers upfront.

MongoDB’s customer base grew to 62,500 at the end of the quarter. The company added 2,600 customers sequentially. That growth rate matched recent quarters and stayed well above historical averages.

Free cash flow margin improved to 22.3%. That’s up from 11.8% in the previous quarter. The operating margin also showed improvement, moving to negative 2.9% from negative 5.3% a year ago.

The company’s adjusted operating income of $123.1 million crushed analyst estimates of $70.72 million. That represented a margin of 19.6%, beating forecasts by 74.1%.

MongoDB trades at a market cap of $27.04 billion. The stock jumped to $356.77 immediately after the earnings release, gaining 8.4% in initial trading.

Desai said the company executed on its plan to drive profitable growth while delivering meaningful margin outperformance. Revenue growth over the last five years has averaged 33.7% annually.

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