TLDR
- MongoDB stock rocketed 23% after reporting Q2 earnings of $1.00 per share, beating estimates by 49%
- Revenue jumped 24% to $591 million, crushing analyst forecasts of $554 million
- Atlas cloud platform accelerated growth to 29% year-over-year from 26% prior quarter
- Company raised full-year guidance across all financial metrics after strong performance
- RBC Capital boosted price target to $350 from $320 following results
MongoDB stock exploded higher in after-hours trading Tuesday, surging over 23% following second-quarter earnings that demolished Wall Street expectations. The database software company delivered a comprehensive beat across all key metrics.
The company reported adjusted earnings of $1.00 per share for the July quarter, crushing analyst estimates of $0.67 per share. This represented a massive 49% beat and 42.5% growth from the same period last year.
MongoDB’s revenue performance was equally impressive. Sales climbed 24% year-over-year to $591 million, easily surpassing the $554 million consensus forecast. Subscription revenue, the company’s primary growth driver, increased 23% to $572 million versus analyst projections of $532 million.
Atlas Platform Powers Growth
MongoDB’s flagship Atlas cloud service showed accelerating momentum during the quarter. The platform’s growth rate jumped to 29% year-over-year, up from 26% in the previous quarter.
CEO Dev Ittycheria highlighted the company’s strategic position in the artificial intelligence revolution. “Many of our recently added customers are building AI applications,” he noted in the earnings release.
The executive emphasized how MongoDB is becoming essential AI infrastructure as companies integrate artificial intelligence capabilities. This positioning has helped drive customer adoption and revenue growth.
Strong Guidance and Analyst Response
Management provided upbeat guidance for the current quarter, projecting sales of $589.5 million at the midpoint. This exceeded analyst expectations of $582 million for the October-ending period.
The company also raised its full-year outlook across all key financial metrics. This beat-and-raise combination typically signals strong business momentum and management confidence.
Operating margins and free cash flow performance both exceeded expectations. Free cash flow margin beat consensus estimates by an impressive 1,200 basis points, demonstrating improved operational efficiency.
RBC Capital quickly responded to the strong results by raising its price target to $350 from $320. The firm maintained its Outperform rating, with the new target implying 9.8 times 2026 revenue estimates.
Before Tuesday’s surge, MongoDB stock had struggled in 2025, falling 8% year-to-date. The company serves over 50,000 users through its database software offerings, with Atlas designed to work across multiple cloud platforms.
RBC analysts noted broad-based strength across both enterprise customer expansion and self-serve growth segments.
