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Why Is MongoDB (MDB) Down 7.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for MongoDB (MDB - Free Report) . Shares have lost about 7.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MongoDB due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
MDB Q2 Earnings Beat Estimates on Atlas & EA Strength, Outlook Raised
MongoDB 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 296.43% due to these changes.
VGM Scores
At this time, MongoDB has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise MongoDB has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
MongoDB is part of the Zacks Internet - Software industry. Over the past month, Rubrik, Inc. (RBRK - Free Report) , a stock from the same industry, has gained 31.3%. The company reported its results for the quarter ended July 2026 more than a month ago.
Rubrik, Inc. reported revenues of $427.26 million in the last reported quarter, representing a year-over-year change of +37.9%. EPS of $0.20 for the same period compares with -$0.03 a year ago.
For the current quarter, Rubrik, Inc. is expected to post earnings of $0.09 per share, indicating a change of -10% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Rubrik, Inc.. Also, the stock has a VGM Score of C.
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Why Is MongoDB (MDB) Down 7.1% Since Last Earnings Report?
It has been about a month since the last earnings report for MongoDB (MDB - Free Report) . Shares have lost about 7.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MongoDB due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
MDB Q2 Earnings Beat Estimates on Atlas & EA Strength, Outlook Raised
MongoDB 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 296.43% due to these changes.
VGM Scores
At this time, MongoDB has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise MongoDB has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
MongoDB is part of the Zacks Internet - Software industry. Over the past month, Rubrik, Inc. (RBRK - Free Report) , a stock from the same industry, has gained 31.3%. The company reported its results for the quarter ended July 2026 more than a month ago.
Rubrik, Inc. reported revenues of $427.26 million in the last reported quarter, representing a year-over-year change of +37.9%. EPS of $0.20 for the same period compares with -$0.03 a year ago.
For the current quarter, Rubrik, Inc. is expected to post earnings of $0.09 per share, indicating a change of -10% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Rubrik, Inc.. Also, the stock has a VGM Score of C.