MongoDB Inc. (NASDAQ:MDB) shares plunged more than 27% after the company released its fiscal fourth-quarter 2026 results, as a weaker-than-expected outlook overshadowed a solid quarterly performance.
For the quarter ended January 31, 2026, the database software provider reported adjusted earnings per share of $1.65, beating the analyst consensus of $1.48 by $0.17. Revenue climbed 27% year over year to $695.1 million, ahead of the $670.06 million estimate.
Revenue from MongoDB’s Atlas cloud platform rose 29% to $502.6 million. However, Morgan Stanley noted this growth rate was about 2 percentage points below buyside expectations.
Investor sentiment turned negative following the company’s guidance. For the first quarter of fiscal 2027, MongoDB forecast adjusted EPS of $1.15 to $1.19, with a midpoint of $1.17 trailing the $1.21 consensus estimate. Revenue is projected between $659 million and $664 million, with the midpoint of $661.5 million slightly under the $662.5 million expected by analysts.
For the full fiscal 2027 year, MongoDB expects adjusted EPS of $5.75 to $5.93, with a midpoint of $5.84 topping the $5.70 consensus. Full-year revenue guidance of $2.86 billion to $2.90 billion, however, came in just below the $2.9 billion estimate at the midpoint of $2.88 billion.
Morgan Stanley analysts described the quarter as strong but said expectations had been elevated. “a high bar masked a fundamentally sound Q4.”
“While MDB’s FY27 revenue outlook fell slightly short of consensus and buyside expectations, there is little to suggest that fundamentals deteriorated in Q4 and into FY27,” wrote analysts led by Sanjit Singh.
They noted that investor expectations had eased somewhat after Atlas delivered 29% growth in the fourth quarter and FY27 guidance came in marginally below consensus. The analysts added that MongoDB is likely to “prove to be an AI winner” and reiterated their view of “the path to 20% revenue growth and 25%+ Atlas rev growth.”
The firm maintained its Overweight rating, stating that “as fundamentals remain strong, seeing shares at ~32x CY27/FCF (consensus) as an attractive entry point.”
During the quarter, MongoDB added 2,700 customers, bringing its total customer base to more than 65,200 as of January 31, 2026. The company also reported 2,799 customers generating over $100,000 in annualized recurring revenue.
“We delivered strong fourth quarter results driven by our continued go-to-market execution and the broad-based demand we are seeing across our product lines,” said CJ Desai, President and Chief Executive Officer of MongoDB. “At the same time, we significantly outperformed on operating margin, achieving a rule of 40 performance.”