MongoDB (MDB) Stock: Database Company Surges After Beating Earnings Estimates by 49%

TLDR

Table of Contents

MongoDB stock jumped 23% after Q2 earnings beat expectations with $1.00 per share vs $0.67 forecast
Revenue hit $591 million, up 24% year-over-year, beating estimates of $554 million
Atlas cloud service accelerated growth to 29% compared to 26% in previous quarter
RBC Capital raised price target from $320 to $350 following strong results
Company raised full-year guidance across all metrics after beat-and-raise quarter

MongoDB stock surged over 23% in after-hours trading Tuesday following second-quarter results that crushed Wall Street expectations. The database software company delivered across the board, reversing months of underwhelming performance.

The New York-based company reported adjusted earnings of $1.00 per share for the July-ended quarter. This represented a 42.5% jump from the prior year and easily topped analyst forecasts of $0.67 per share.

Revenue climbed 24% to $591 million, well ahead of the $554 million consensus estimate. Subscription-based revenue, the company’s core business, rose 23% to $572 million versus analyst projections of $532 million.

MongoDB, $MDB, Q2-26. Results:
📊 Adj. EPS: $1.00 🟢
💰 Revenue: $591.4M 🟢
📈 Net Loss: $47M
🔎 Atlas revenue grew 29% YoY and now makes up 74% of total revenue; customer growth remains strong with 59,900 total customers. pic.twitter.com/wMJqdU2aMt
— EarningsTime (@Earnings_Time) August 26, 2025

MongoDB’s Atlas cloud service showed particularly strong momentum. The platform accelerated its growth rate to 29% year-over-year, up from 26% in the previous quarter.

CEO Dev Ittycheria highlighted the company’s position in the AI boom during the earnings announcement. “Many of our recently added customers are building AI applications,” he said in the release.

The executive noted how MongoDB is becoming a key piece of AI infrastructure. This positioning comes as companies rush to integrate artificial intelligence capabilities into their operations.

Strong Guidance Lifts Outlook

Management provided upbeat guidance for the current quarter. The company expects sales of $589.5 million at the midpoint of its range for the October-ending period.

Analysts had been modeling $582 million in revenue for the third quarter. The guidance beat represents continued confidence in the business trajectory.

MongoDB also raised its full-year outlook across all key metrics. This beat-and-raise combination typically signals strong execution and visibility into future quarters.

Operating income and free cash flow margins both exceeded expectations during the quarter. Free cash flow margin beat consensus estimates by a substantial 1,200 basis points.

Analyst Response and Stock Performance

RBC Capital moved quickly to adjust its price target following the results. The firm raised its target to $350 from $320 while maintaining an Outperform rating.

The new price target implies 9.8 times calendar year 2026 estimated revenue. RBC viewed the quarter as validation of MongoDB’s execution and Atlas durability.

Prior to the earnings jump, MongoDB stock had struggled in 2025. Shares were down 8% year-to-date and 13% over the past 12 months before Tuesday’s surge.

The company had faced headwinds common to enterprise software stocks this year. Concerns about AI potentially disrupting traditional software business models weighed on the sector.

MongoDB’s impressive rally from late 2022 to early 2024 had stalled out. The stock gained over 200% during that period on AI optimism before hitting resistance.

The database company serves more than 50,000 users through its various software offerings. Its Atlas subscription platform works across multiple cloud environments.

RBC noted that strength appeared broad-based across both enterprise expansion and self-serve customer growth. Management raised full-year guidance following the beat-and-raise quarter performance.

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