MongoDB reports Q2 revenue growth of 30%, shares fall
MongoDB reported second-quarter revenue of $771.8 million, up about 30% year on year, and non-GAAP EPS of $1.90, both above consensus. Shares fell 10.82% to $387.25 as analysts cited Atlas growth and AI demand.
RBC Capital Markets analyst Rishi Jaluria kept an Outperform rating on MongoDB and cut the price target to $465 from $515. Rosenblatt Securities analyst Blair Abernethy reiterated a Buy rating and lifted the price target to $445 from $395. DA Davidson analyst Rudy Kessinger maintained a Buy rating with a $465 price target. Jaluria said MongoDB posted strong quarterly results, with beats across all metrics.
Revenue rose around 30% year on year to $771.8 million and non-GAAP earnings were $1.90 a share, above consensus estimates of $735.3 million and $1.61 a share, respectively. He said the launch of search and vector search on EA saw immediate demand as customers add AI capabilities into a self-managed environment. Management guided to fiscal 2027 revenue, non-GAAP operating margin and non-GAAP earnings ahead of consensus estimates, he said. Abernethy said revenue growth of 30% was driven by "strong core customer cloud-based Atlas consumption growth." He added that Atlas accounted for around 73% of the company’s total revenue.
The non-Atlas business grew 36% year-on-year, which he attributed to widespread strength. He said Mongo’s core enterprise customers are continuing to modernize applications and increasingly view MongoDB as a strategic technology decision as they prepare their data estates for AI. DA Davidson’s Kessinger said MongoDB’s stock came under pressure after the second-quarter print because of "hyperfixation" on Atlas growth. He said Atlas growth slowed to 28.9% year-on-year from 29.4% in the previous quarter, but remained at the high end of the potential upside range management had indicated.
Kessinger also said non-Atlas subscriber revenue growth was very strong at 36% year-on-year, with new AI functionality having a positive impact and making sustained double-digit non-Atlas ARR growth seem increasingly durable. He added that management’s guidance raise for the second half of the year was mostly Atlas driven. MongoDB shares had fallen 10.82% to $387.25 at the time of publication on Wednesday.