Shares advance as results exceed expectations
MongoDB (NASDAQ:MDB) gained more than 4% in pre-market trading on Friday, adding to a 10.6% rise from the previous session, after the database software provider delivered first-quarter fiscal 2027 results that surpassed analyst forecasts across key financial metrics and increased its outlook for the full year.
The stock experienced significant volatility following the earnings release, initially surging more than 20% in after-hours trading before surrendering much of those gains. Morgan Stanley attributed the reversal to management comments suggesting that Atlas growth was “more likely to sustain rather than accelerate.”
Revenue and earnings top forecasts
MongoDB reported first-quarter revenue of $687.6 million, representing year-on-year growth of 25.2% and exceeding the consensus estimate of $664.1 million by $23.5 million.
Adjusted diluted earnings per share came in at $1.32, outperforming analyst expectations of $1.19 by $0.13.
Adjusted operating income reached $123.2 million, comfortably ahead of the consensus forecast of $108.9 million, while adjusted gross profit totalled $512.2 million, exceeding expectations of $493.1 million and producing a gross margin of 74.5%.
Atlas cloud platform maintains strong momentum
MongoDB’s Atlas cloud database platform continued to be a major growth driver during the quarter.
Atlas revenue increased 29.4% year-on-year to $512.5 million, slightly faster than the 29.2% growth recorded in the previous quarter.
Meanwhile, Enterprise Advanced and other subscription revenue rose 13.4% to $153.7 million, comfortably above the analyst consensus estimate of $144.9 million.
The company also delivered strong cash generation, with free cash flow reaching $197.5 million compared with market expectations of $125.4 million.
Large customer base continues to expand
MongoDB reported continued growth among higher-value customers.
The number of customers generating more than $100,000 in annual recurring revenue increased to 2,895, compared with 2,506 in the same period last year.
“We delivered better-than-expected first quarter results, as our go-to-market teams continue to execute well and capitalize on strong end-market demand for the MongoDB platform across enterprise use cases and emerging AI opportunities,” said President and Chief Executive Officer CJ Desai.
Guidance raised for the remainder of the year
Management also issued stronger-than-expected guidance for both the current quarter and the full fiscal year.
For the second quarter, MongoDB expects revenue of between $729 million and $734 million. The midpoint of $731.5 million exceeds the analyst consensus estimate of $700.6 million.
The company forecast adjusted diluted earnings per share of $1.58 to $1.61 for the quarter, well above the consensus expectation of $1.30.
For fiscal 2027, MongoDB raised its revenue outlook to a range of $2.92 billion to $2.96 billion, up from its previous guidance of $2.86 billion to $2.90 billion.
Full-year adjusted diluted earnings per share are now expected to be between $5.95 and $6.14, ahead of the consensus forecast of $5.88.
Analysts highlight AI opportunity despite mixed Atlas reaction
Barclays, which maintains an “overweight” rating and a $370 price target, described the results as “very solid” but noted that Atlas growth “did not accelerate meaningfully” compared with peers Datadog and Snowflake, which it viewed as “a small negative, especially against heightened expectations.”
Morgan Stanley remained more optimistic, raising its price target to $380 from $335 while reiterating its Overweight rating.
The bank noted that MongoDB’s fiscal 2027 revenue outlook increased by approximately $60 million, exceeding the combined impact of the first-quarter beat and second-quarter guidance increase. Analysts described a future AI-driven acceleration in growth as “a matter of when not if.”
Chief Financial Officer Mike Berry also sought to temper expectations regarding near-term volatility, stating during the earnings call that the company does “not expect large swings versus guidance for the current quarter.”
AI workloads increasingly contribute to growth story
While traditional database workloads remain the primary source of revenue, management highlighted growing momentum in artificial intelligence-related applications.
“To be clear, our results today are driven primarily by core workloads, but we are seeing real and growing momentum from AI and agentic workloads, and believe MongoDB is purposeful to be generational data platform for the agentic era,” Desai added.
The comments reinforced MongoDB’s position as one of the key infrastructure providers seeking to benefit from the rapid expansion of AI and agent-based software applications.