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MDB Q2 Earnings Beat Estimates on Atlas & EA Strength, Outlook Raised
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Key Takeaways
MDB Q2 revenues rose 30.5% to $771.8M, while non-GAAP EPS jumped 90% to $1.90.
Atlas revenues grew 28.9% to $565.9M, while Enterprise Advanced and other revenues rose 35.9%.
MDB raised fiscal 2027 revenue guidance to $2.99B-$3.03B and non-GAAP EPS to $6.39-$6.58.
MongoDB, Inc. (MDB - Free Report) delivered second-quarter fiscal 2027 non-GAAP earnings of $1.90 per share, which rose 90% year over year and topped the Zacks Consensus Estimate by 18.75%.
Total revenues increased 30.5% year over year to $771.8 million and surpassed the consensus estimate by 5.2%. Results benefited from strength among large enterprise customers, solid Atlas consumption and broad Enterprise Advanced demand.
Total company net ARR expansion improved to 122% from 119% a year ago and 121% in the prior quarter.
MDB's Q2 Revenue Mix Reflects Broad Strength
Subscription revenues rose 30.5% year over year to $747.1 million, while services revenues increased 29.3% to $24.6 million. The subscription business remained the primary contributor to the top line.
Atlas-related revenues totaled $565.9 million, up 28.9% from $439.0 million a year ago. MongoDB Enterprise Advanced and other revenues reached $181.2 million, rising 35.9% from $133.4 million, reflecting broad strength across financial services, the public sector and technology.
MongoDB's Customer Metrics Keep Expanding
MongoDB ended the quarter with more than 70,600 customers, up from 59,900 a year ago, after adding approximately 2,900 customers sequentially. Atlas customers increased to more than 69,300 from 58,500 in the prior-year period.
Customers generating at least $100,000 in annual recurring revenues rose 17% year over year to 2,999. Among Atlas customers in this cohort, 48% used two or more platform features, up from 42%, driven largely by Vector Search and text search adoption. Remaining performance obligations climbed 91% to $1.52 billion.
MongoDB's Q2 Operating Details
In the fiscal second quarter, MongoDB’s non-GAAP gross profit increased to $585.7 million, with the non-GAAP gross margin expanding to 76% from 74% a year ago.
Subscription gross margin was 78.3%, up about 70 basis points, primarily reflecting the higher Enterprise Advanced revenue mix.
Non-GAAP sales and marketing expenses rose 6.9% year over year to $215.7 million. Research and development expenses increased 30.7% to $137.4 million, while general and administrative expenses advanced 9.6% to $46.7 million.
Non-GAAP income from operations rose to $185.9 million from $86.8 million. The corresponding operating margin expanded to 24% from 15%, underscoring stronger operating leverage alongside the quarter's revenue growth.
MongoDB's Balance Sheet & Cash Flow
As of July 31, 2026, MongoDB had cash, cash equivalents and short-term investments of $2.4 billion compared with $2.4 billion as of April 30, 2026.
During the quarter, the company allocated $100 million toward share repurchases and $59 million to settle taxes on employee restricted stock units.
Operating cash flow was $141.9 million in the fiscal second quarter compared with $201.6 million reported in the prior quarter.
Free cash flow during the quarter was $137.6 million compared with $197.5 million in the prior quarter.
MongoDB Raises Fiscal 2027 Guidance
For the third quarter of fiscal 2027, MongoDB expects revenues of $756 million to $761 million. Non-GAAP income from operations is projected between $152 million and $156 million, while non-GAAP earnings are expected between $1.57 and $1.61 per share.
For fiscal 2027, revenues are now anticipated between $2.99 billion and $3.03 billion, up from the prior $2.92-$2.96 billion range. Non-GAAP earnings are projected between $6.39 and $6.58 per share compared with the previous $5.95-$6.14 range. Management now expects Atlas growth of approximately 27% and Enterprise Advanced and other revenue growth of about 11% for the year.
Docusign is slated to announce its second-quarter fiscal 2027 results on Sept. 3. Micron Technology is scheduled to report its fourth-quarter fiscal 2026 results on Sept. 30, while ServiceTitan is set to announce its second-quarter fiscal 2027 results on Sept. 8.
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MDB Q2 Earnings Beat Estimates on Atlas & EA Strength, Outlook Raised
Key Takeaways
MongoDB, Inc. (MDB - Free Report) delivered second-quarter fiscal 2027 non-GAAP earnings of $1.90 per share, which rose 90% year over year and topped the Zacks Consensus Estimate by 18.75%.
Total revenues increased 30.5% year over year to $771.8 million and surpassed the consensus estimate by 5.2%. Results benefited from strength among large enterprise customers, solid Atlas consumption and broad Enterprise Advanced demand.
Total company net ARR expansion improved to 122% from 119% a year ago and 121% in the prior quarter.
MDB's Q2 Revenue Mix Reflects Broad Strength
Subscription revenues rose 30.5% year over year to $747.1 million, while services revenues increased 29.3% to $24.6 million. The subscription business remained the primary contributor to the top line.
MongoDB, Inc. Price, Consensus and EPS Surprise
MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote
Atlas-related revenues totaled $565.9 million, up 28.9% from $439.0 million a year ago. MongoDB Enterprise Advanced and other revenues reached $181.2 million, rising 35.9% from $133.4 million, reflecting broad strength across financial services, the public sector and technology.
MongoDB's Customer Metrics Keep Expanding
MongoDB ended the quarter with more than 70,600 customers, up from 59,900 a year ago, after adding approximately 2,900 customers sequentially. Atlas customers increased to more than 69,300 from 58,500 in the prior-year period.
Customers generating at least $100,000 in annual recurring revenues rose 17% year over year to 2,999. Among Atlas customers in this cohort, 48% used two or more platform features, up from 42%, driven largely by Vector Search and text search adoption. Remaining performance obligations climbed 91% to $1.52 billion.
MongoDB's Q2 Operating Details
In the fiscal second quarter, MongoDB’s non-GAAP gross profit increased to $585.7 million, with the non-GAAP gross margin expanding to 76% from 74% a year ago.
Subscription gross margin was 78.3%, up about 70 basis points, primarily reflecting the higher Enterprise Advanced revenue mix.
Non-GAAP sales and marketing expenses rose 6.9% year over year to $215.7 million. Research and development expenses increased 30.7% to $137.4 million, while general and administrative expenses advanced 9.6% to $46.7 million.
Non-GAAP income from operations rose to $185.9 million from $86.8 million. The corresponding operating margin expanded to 24% from 15%, underscoring stronger operating leverage alongside the quarter's revenue growth.
MongoDB's Balance Sheet & Cash Flow
As of July 31, 2026, MongoDB had cash, cash equivalents and short-term investments of $2.4 billion compared with $2.4 billion as of April 30, 2026.
During the quarter, the company allocated $100 million toward share repurchases and $59 million to settle taxes on employee restricted stock units.
Operating cash flow was $141.9 million in the fiscal second quarter compared with $201.6 million reported in the prior quarter.
Free cash flow during the quarter was $137.6 million compared with $197.5 million in the prior quarter.
MongoDB Raises Fiscal 2027 Guidance
For the third quarter of fiscal 2027, MongoDB expects revenues of $756 million to $761 million. Non-GAAP income from operations is projected between $152 million and $156 million, while non-GAAP earnings are expected between $1.57 and $1.61 per share.
For fiscal 2027, revenues are now anticipated between $2.99 billion and $3.03 billion, up from the prior $2.92-$2.96 billion range. Non-GAAP earnings are projected between $6.39 and $6.58 per share compared with the previous $5.95-$6.14 range. Management now expects Atlas growth of approximately 27% and Enterprise Advanced and other revenue growth of about 11% for the year.
MDB’s Zacks Rank & Stocks to Consider
MongoDB currently carries a Zacks Rank #3 (Hold).
Docusign (DOCU - Free Report) , Micron Technology (MU - Free Report) and ServiceTitan Inc. (TTAN - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. DOCU, MU and TTAN each currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Docusign is slated to announce its second-quarter fiscal 2027 results on Sept. 3. Micron Technology is scheduled to report its fourth-quarter fiscal 2026 results on Sept. 30, while ServiceTitan is set to announce its second-quarter fiscal 2027 results on Sept. 8.