The past couple of years have been rocky ones for MongoDB (MDB +22.21%) shareholders. The cloud-native database provider experienced numerous quarters of decelerating growth, as high inflation, economic uncertainty, and questions about the impact of artificial intelligence (AI) on the company's business eroded its results and sent some investors running for the exits. The defection was so severe that, from its peak in early 2024, MongoDB stock plunged as much as 71%.
However, seasoned investors know that businesses experience a natural ebb and flow, particularly in uncertain times. Now, MongoDB is in the midst of a renaissance, and shareholders who stood their ground are being rewarded for their patience, as growth has resumed and Wall Street has become increasingly bullish. In fact, the stock surged as much as 27% Tuesday morning in the wake of MongoDB's latest financial release, which laid to rest any lingering doubts about the company's future prospects.
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The numbers tell a tale
For its fiscal 2026 third quarter (ended Oct. 31), MongoDB generated revenue of $628 million, up 19% year over year. The headliner was the company's flagship Atlas platform, as revenue jumped 30%, accounting for 75% of the company's Q3 revenue. This fueled adjusted earnings per share (EPS) of $1.32, which swung from a loss per share of $1.16 in the prior-year quarter.
For context, analysts' consensus estimates were calling for revenue of $593.9 million and adjusted EPS of $0.81, so MongoDB blew the doors off expectations.
The better-than-expected results were driven by the addition of 2,600 new customers during the quarter, up 19% year over year. Furthermore, customers spending more than $100,000 per year in annual recurring revenue (ARR) climbed to 2,694, up 16%.
MongoDB announced that Chirantan "CJ" Desai would take the helm as CEO, succeeding Dev Ittycheria, who held the reins for 11 years.
The company also announced that it had been selected as a Leader for the 2025 Gartner Magic Quadrant Cloud Database Management Systems (CDBMS), which cited the company's "execution strength, innovation velocity, and continued leadership in redefining what a modern database platform can do in the era of AI." MongoDB was also named as the 2025 Microsoft United States Partner of the Year, solidifying its position as the "best data foundation for AI" on Microsoft's Azure Cloud offering.
Speaking of AI, Desai, noted that he sees a "large opportunity ahead for both core operational data and emerging AI workloads." He went on to say that MongoDB already serves more than 70% of the Fortune 100, noting that "many of the world's largest banks, healthcare organizations, and manufacturers run their mission-critical workloads on MongoDB."
Since databases are crucial for helping developers build and deploy AI-centric apps, MongoDB is in the pole position as AI adoption gains steam.
NASDAQ: MDB
Key Data Points
What the future holds
Perhaps more telling than the company's current results was management's decision to significantly increase its full-year forecast. MongoDB is now guiding for revenue of $2.436 billion, up 21%, driving adjusted EPS of $4.78, up 31%. It's worth noting that the company's profit forecast was increased by more than $1 per share, compared to the guidance issued by management just three months ago.
It wasn't just investors who cheered the results and accompanying increase in guidance. Analysts turned extremely bullish on MongoDB's future, as two dozen of Wall Street's finest increased their price targets on the stock. Cantor analyst Thomas Blakely's take was representative of many of his Wall Street colleagues, noting, "The AI tailwind, in our view, continues to not be fully priced into shares even at recently expanded multiples ... we see multiple levers of optionality for MongoDB shares from future beat-and-raise [quarters]."
Wolf Research increased its price target to a Street-high $500, representing additional potential upside of 23% beyond today's 24% gains (as of this writing). The analysts called this a "knockout quarter," citing three key opportunities ahead: core modernization, enterprise AI experimentation, and AI-native companies pivoting from open-source databases that simply won't scale.
With a market cap of $33 billion (as of this writing), MongoDB is currently trading for roughly 13 times its expected fiscal 2026 sales. While that's a bit of a premium, the company has shown that its Atlas cloud-native database is well-positioned to thrive in the AI era.
