MongoDB Stock Plummets 16% After Weak Guidance Despite Beating Earnings Estimates

MongoDB shares dropped 16% in after-hours trading after issuing weaker-than-expected guidance. The company reported adjusted earnings per share of $1.28, beating the expected 66 cents, while revenue reached $548.4 million, surpassing forecasts of $519.6 million. Net income stood at $15.8 million, a sharp turnaround from last year’s $55.5 million loss. MongoDB added 1,900 customers, bringing its total to 54,500, but deferred revenue of $360 million fell short of the $370.4 million estimate.

Slower-than-expected growth in new applications for its Atlas cloud database raised concerns, prompting the company to shift its focus toward large enterprises while scaling back efforts on mid-sized businesses. To enhance its capabilities, MongoDB acquired AI startup Voyage. However, its fiscal 2026 revenue guidance of $2.24 billion to $2.28 billion suggests a 12.7% growth rate, the slowest since its IPO in 2017. Before this decline, MongoDB shares had risen 13% year-to-date, while the S&P 500 was down 1%.

CONTENT:

• MongoDB Turns a Profit but Stock Crashes 16% on Weak Forecast

MongoDB Stock Plummets 16% After Weak Guidance Despite Beating Earnings Estimates

MongoDB shares dropped 16% in after-hours trading on Wednesday following weaker-than-expected guidance from the database software company.

Financial Performance vs. Estimates

• Adjusted earnings per share: $1.28 (beating the expected 66 cents).
• Revenue: $548.4 million (surpassing the $519.6 million forecast).

The company’s revenue for the quarter ending Jan. 31 grew by about 20% year-over-year. It also reported a net income of $15.8 million, or 19 cents per share, a significant improvement from the previous year’s net loss of $55.5 million, or 77 cents per share.

MongoDB added 1,900 new customers, bringing the total to 54,500. However, deferred revenue at the end of the quarter stood at $360 million, falling short of the $370.4 million projected by analysts.

Interim CFO Srdjan Tanjga noted on an analyst call that the company is experiencing slower-than-expected growth in new applications using its Atlas cloud database. To address this, MongoDB is increasing hiring efforts to target enterprise-level clients while scaling back its focus on mid-sized businesses.

In line with its strategic expansion, MongoDB acquired artificial intelligence startup Voyage during the quarter, though financial details were not disclosed. CEO Dev Ittycheria emphasized the company’s intent to seize what he described as a “once-in-a-generation opportunity.”

Guidance for Fiscal Q1

• Adjusted earnings per share: 63 to 67 cents (compared to analysts’ expectations of 62 cents).
• Revenue: $524 million to $529 million (analysts had forecast $526.8 million).

Fiscal 2026 Outlook

• Adjusted EPS: $2.44 to $2.62 (below the anticipated $3.34).
• Revenue: $2.24 billion to $2.28 billion (falling short of the $2.32 billion estimate).

This guidance suggests a projected revenue growth of 12.7%, the slowest since MongoDB’s 2017 IPO.

Before this after-hours decline, MongoDB shares had risen 13% year-to-date, while the S&P 500 had dropped approximately 1%.

MongoDB Turns a Profit but Stock Crashes 16% on Weak Forecast

MongoDB Inc. reported a quarterly profit for the first time in its fiscal 2025 fourth-quarter results, significantly surpassing analysts’ expectations on both earnings and revenue. However, its weaker-than-expected outlook for the upcoming fiscal year sent its stock tumbling more than 16% in after-hours trading.

The company posted adjusted earnings of $1.28 per share on revenue of $548.4 million, marking a 20% year-over-year increase. These figures far exceeded Wall Street’s forecast of 60 cents per share on $521 million in revenue. Subscription revenue climbed 19%, while services revenue grew by 34%. MongoDB also continued expanding its customer base, closing the quarter with over 54,500 customers. Despite the strong performance, its fiscal-year guidance fell short. The company projected earnings of $2.44 to $2.62 per share and revenue between $2.24 billion and $2.28 billion—both below analysts’ estimates of $3.38 per share and $2.33 billion in revenue.

MongoDB’s stock had initially gained over 3% before the earnings report but sharply declined due to the disappointing outlook. The company, known for its document-oriented database, generates most of its revenue from MongoDB Atlas, its cloud-based offering, alongside on-premises and mobile versions. CEO Dev Ittycheria highlighted that Atlas consumption exceeded expectations, contributing to margin growth and strong demand for the platform’s scalability and flexibility.

Recently, MongoDB acquired Voyage AI Inc., an artificial intelligence startup specializing in embeddings, which help structure unstructured data for improved searchability and AI accessibility. The acquisition enhances MongoDB’s vector search capabilities, aiming to strengthen its AI-driven database features.

Industry analyst Holger Mueller acknowledged MongoDB’s solid quarter, emphasizing its milestone of surpassing $500 million in quarterly revenue, translating to an annual run rate above $2 billion. While the profit was modest at 20 cents per share, it marked a positive step for investors. Going forward, execution will be crucial to sustaining profitability and growth.

For the current quarter, MongoDB’s guidance was more in line with expectations, projecting earnings of 63 to 67 cents per share on revenue of $524 million to $529 million, closely matching Wall Street’s estimates of 62 cents per share on $527 million in revenue.