MongoDB (MDB) shares soared more than 30% on Wednesday after the company delivered much stronger-than-expected earnings and raised its outlook for the rest of the year.
The results showed that demand for its cloud platform, Atlas, is picking up speed as companies look for better ways to handle data in the age of artificial intelligence (AI).
In the quarter ending July, MongoDB reported revenue of $591 million, up 24% from last year and well ahead of Wall Street estimates. Adjusted earnings came in at $1 per share, far above the $0.66 analysts were expecting. A year ago, MongoDB was losing money—so the swing to profitability highlights just how much the business has improved.
Management also raised its forecast for the full year. Revenue is now expected to come in between $2.34 and $2.36 billion, with profits in the $3.64 to $3.73 per share range. Both figures were well above earlier guidance.
Atlas Cloud Platform Driving Growth
The real star of the quarter was Atlas, MongoDB’s cloud-based database platform. Atlas revenue grew 29% year over year and now makes up 74% of the company’s sales. Companies are increasingly turning to Atlas because it makes it easier to manage large, complex sets of data—something that’s becoming critical for AI tools like chatbots, recommendation engines, and search platforms.
MongoDB also added 2,800 new customers during the quarter, bringing its total to nearly 60,000. Importantly, the number of big clients—those spending over $100,000 a year—grew 17% to 2,564. These large accounts are particularly valuable because they often expand their spending over time.
CEO Dev Ittycheria said many of these new wins are tied directly to AI projects. For example, a major electric vehicle manufacturer is using MongoDB to support its self-driving technology.
Why Analysts Are Getting More Bullish
After the report, more than 15 analysts raised their price targets for the stock. Cantor Fitzgerald lifted its target to $312 from $271, saying MongoDB is well-positioned because it works across all the big cloud providers, making it a flexible option for companies.
Analysts also noted that MongoDB trades at a lower valuation than rival Snowflake, even though it’s growing just as fast in some areas. That makes it an attractive pick for investors who want exposure to the AI data boom without paying top-dollar valuations.
After the report, more than 15 analysts raised their price targets for the stock. Cantor Fitzgerald lifted its target to $312 from $271, saying MongoDB is well-positioned because it works across all the big cloud providers, making it a flexible option for companies.
Analysts also noted that MongoDB trades at a lower valuation than rival Snowflake, even though it’s growing just as fast in some areas. That makes it an attractive pick for investors who want exposure to the AI data boom without paying top-dollar valuations.
Strong Balance Sheet and Share Buybacks
Beyond growth, MongoDB also showed it’s becoming more financially disciplined. Operating income came in at $87 million, and free cash flow was $70 million—meaning the company is not only growing but also generating cash.
It ended the quarter with $2.3 billion in cash on hand and even repurchased $200 million of its own stock, a move that signals management’s confidence in the future.
Beyond growth, MongoDB also showed it’s becoming more financially disciplined. Operating income came in at $87 million, and free cash flow was $70 million—meaning the company is not only growing but also generating cash.
It ended the quarter with $2.3 billion in cash on hand and even repurchased $200 million of its own stock, a move that signals management’s confidence in the future.
A Clear AI Winner
MongoDB’s latest quarter confirms that it’s becoming a key player in the AI-driven data economy. With Atlas adoption accelerating, big enterprises signing on, and the company turning profitable, MongoDB is showing it has both growth and staying power.
For retail investors, the stock may still be volatile given its high growth profile, but MongoDB looks well-positioned for the long term as businesses worldwide race to upgrade their data infrastructure for the AI era.
MongoDB’s latest quarter confirms that it’s becoming a key player in the AI-driven data economy. With Atlas adoption accelerating, big enterprises signing on, and the company turning profitable, MongoDB is showing it has both growth and staying power.
For retail investors, the stock may still be volatile given its high growth profile, but MongoDB looks well-positioned for the long term as businesses worldwide race to upgrade their data infrastructure for the AI era.
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