MongoDB Surges After Crushing Q3 Estimates, Raises Outlook
Shares climb as the database software company reports a 66% earnings beat and 30% growth in its crucial Atlas cloud platform, signaling strong enterprise demand.
MongoDB Inc. (NASDAQ: MDB) shares rallied sharply in after-hours trading Monday after the database software maker delivered third-quarter results that significantly surpassed Wall Street expectations and raised its financial outlook for the remainder of its fiscal year.
The New York-based company announced a robust 66% beat on adjusted earnings per share, posting $1.32 against analyst consensus of $0.79. Revenue for the quarter ending October 31 also exceeded forecasts by nearly 6%, coming in at $628.3 million versus an expected $593.4 million, according to its official financial release.
The strong performance was driven by the accelerating adoption of MongoDB Atlas, its multi-cloud database-as-a-service platform. Atlas revenue grew 30% year-over-year, now accounting for a substantial portion of the company's total revenue. This figure is closely watched by investors as a key indicator of MongoDB's success in the competitive cloud infrastructure market.
Following the announcement, MongoDB's stock saw a significant jump, reflecting investor confidence in the company's growth trajectory and its ability to capture a larger share of enterprise IT budgets. The company's market capitalization stood at over $27 billion ahead of the report, with shares trading near $329.
"Our outstanding third-quarter results are a direct reflection of the immense value our developer data platform provides to customers building modern, mission-critical applications," the company stated in its report. The growth in Atlas highlights a broader trend of businesses migrating from legacy database systems to more flexible, scalable cloud-native solutions.
Buoyed by the strong quarterly performance and sustained customer demand, MongoDB raised its guidance for both the upcoming fourth quarter and the full fiscal year 2026. The company now projects full-year revenue to be in a higher range than previously anticipated and lifted its forecast for adjusted earnings per share, signaling confidence in continued operational efficiency and market expansion.
Wall Street analysts have been largely optimistic about the company's prospects. Ahead of the earnings, over two dozen analysts maintained a "Buy" or equivalent rating on the stock, with an average price target hovering around $371, according to market data. The positive results and upgraded forecast are likely to trigger a fresh round of price target revisions. Analysts at firms like Truist Securities and DA Davidson have recently affirmed their positive stance, citing the pivotal role of the Atlas platform.
The results come just weeks after a leadership transition, with former CEO Dev Ittycheria stepping down and Chirantan "CJ" Desai taking the helm. The strong quarterly report under the new leadership provides a dose of confidence for investors and suggests a seamless transition in strategic execution.
MongoDB's platform is designed to help developers manage large volumes of unstructured data, a critical need for modern applications ranging from e-commerce to artificial intelligence. Its success with Atlas demonstrates its ability to compete effectively against cloud giants like Amazon Web Services' DynamoDB and Google's Firebase.
Looking ahead, investors will be watching to see if the accelerated growth in the Atlas platform can be sustained and how the company continues to navigate the competitive landscape. While the company has yet to achieve sustained GAAP profitability, the strong non-GAAP earnings and positive free cash flow are viewed as clear signs of a maturing and increasingly disciplined business model.