MongoDB Shares Drop 13% After Atlas Growth Remains Flat

MongoDB shares fell 13% on Wednesday after the company reported second-quarter results that beat revenue estimates but left growth in its Atlas cloud database unchanged. The stock traded around $375.72 after closing Tuesday down 4% ahead of the earnings release.

Revenue for the quarter was $771.8 million, up 30% year over year and above the FactSet estimate of $735 million. Atlas revenue grew 29% year over year, exceeding MongoDB’s guidance of 26% but matching the prior quarter’s rate.

Chief Executive CJ Desai called the results “strong second quarter results,” citing 30% revenue growth and continued profitability. The company raised its fiscal 2027 revenue outlook to $3.0 billion from a prior range of $2.9 billion to $3.0 billion and lifted adjusted earnings-per-share guidance to $6.39–$6.58 from $5.95–$6.14. MongoDB expects Atlas revenue to grow 27% in fiscal 2027, with growth slowing in the second half compared with the first half.

Atlas accounted for about 73% of total revenue and reached an annualized run rate above $2 billion. The company added a record 2,900 customers in the quarter and reported that Voyage customer count nearly doubled from the prior quarter. Non-Atlas on-premise revenue grew 36% year over year, operating margins reached 24%, and net revenue retention was 122%. Customers spending at least $100,000 who use two or more MongoDB products rose to 48% from 42% a year earlier.

Several analyst firms raised price targets after the report. Rosenblatt set a target of $445, Morgan Stanley set $430, Cantor set $540, and Canaccord set $480. Analysts highlighted MongoDB’s positioning in application development for artificial intelligence and described the company’s business fundamentals as solid.

Analysts also reported that AI-related revenue remains a small portion of current sales but that the AI pipeline is moving toward data-driven deployments. Some firms expect updated enterprise agreement assumptions and revised forecasts ahead of MongoDB’s upcoming investor day.

Shares had risen about 29% in the prior month. Investors will watch updated guidance and analyst ratings ahead of the investor day.