MongoDB Earnings Lift Shares After Q3 Beat

MongoDB earnings released on Dec. 1, 2025 showed stronger-than-expected results and a raised FY2026 outlook, prompting analysts to lift targets and driving a sharp gain in MDB stock, fueled by momentum in the Atlas cloud platform.

Q3 Results, Guidance, and Atlas Growth

MongoDB, Inc. (MDB) reported third-quarter fiscal 2026 total revenue of $628.3 million, up 19% year-over-year. Subscription revenue reached $609.1 million, with services contributing $19.2 million. On a non-GAAP basis, net income was $114.5 million, or $1.32 per diluted share. The GAAP net loss narrowed to $2.0 million, or $(0.02) per diluted share.

Management raised full-year FY2026 revenue guidance to a range of $2.434 billion to $2.439 billion and non-GAAP diluted EPS guidance to $4.76–$4.80. Fourth-quarter guidance projects revenue between $665 million and $670 million, with non-GAAP EPS of $1.44–$1.48. CEO CJ Desai said, "We are raising our guidance on the top and bottom line for the rest of the year," attributing the outlook to strong demand for the Atlas cloud platform and growing enterprise adoption of AI-ready database services.

Atlas growth accelerated to 30% year-over-year, accounting for 75% of total revenue in the quarter. MongoDB added 2,600 net-new customers, bringing its total customer base to more than 62,500 as of Oct. 31, 2025.

Operating cash flow for the first nine months of FY2026 rose to $325.5 million from $99.7 million a year earlier. Non-GAAP income from operations increased 21% to $123.1 million, while the GAAP loss from operations narrowed to $(18.4) million from $(27.9) million, reflecting progress toward positive operating leverage.

Margins, Product Updates, and Market Response

GAAP gross profit for the quarter was $449.1 million, with GAAP gross margin compressing 300 basis points to 71% from 74% a year earlier. Non-GAAP gross margin also declined 300 basis points to 74%. MongoDB expanded availability of search and vector-search capabilities—previously exclusive to Atlas—into its Community Edition and Enterprise Server products. The company was named a Leader in the 2025 Gartner Magic Quadrant for Cloud Database Management Systems for the fourth consecutive year.

Following the earnings release and raised guidance, MDB stock rallied, and analysts increased price targets, reflecting confidence in the company’s growth trajectory and profitability outlook.