MongoDB’s stock shot past Wall Street’s Q3 estimates, gaining over 25% since its earnings report

Database software maker MongoDB’s stock shot past Wall Street’s Q3 estimates, gaining over 25% since yesterday’s announcement of its earnings and revenue. The company’s shares initially jumped 15% following the December 1 announcement before stretching it to nearly 27% in 24 hours, and by roughly 40% YTD.

MongoDB’s earnings and revenue report confirmed that the company posted $1.32 in adjusted earnings per share on $628 million in revenue. That surpassed the predicted $0.80 adjusted earnings per share on approximately $592 million in revenue, as expected by analysts polled by LSEG. 

Meanwhile, Bernstein analysts raised MongoDB’s share price target to $452 as they expect the stock to continue benefiting from the company’s growth. They expect strong consumption demand, benefits from interest cuts, and the potential upside from AI to continue surging in the near term. MDB is currently trading at $406.21 as of publication, representing an increase of approximately $78.23 in the past 24 hours.

Desai says MongoDB is approaching a once-in-a-lifetime opportunity

The CEO of MongoDB, Chirantan “CJ” Desai, stated during his company’s first earnings call that it is approaching a once-in-a-lifetime opportunity. He noted that AI, cloud services, and data trends are about to reach what he calls “a true inflection point.” Desai also unveiled plans to focus on building innovation and customer relationships in the months ahead.

MongoDB also cited the above tailwinds, as well as those from ongoing AI demand, to boost its guidance for 2025 on Atlas growth. The Atlas platform grew 30% YoY, accounting for nearly 75% of total Q3 revenue. The database software maker now projects revenues of between $2.434 billion and $2.439 billion, an increase from the previous guidance of $2.34 billion and $2.36 billion.

“Q3 was an exceptional quarter that was driven by our continued go-to-market execution and the broad-based demand we are seeing across business.” 

–Chirantan Desai, CEO of MongoDB

MongoDB said the Atlas platform ended the quarter with over 60,800 customers, with revenues expected to surge 27% in the current period. Revenue jumped 19% YoY, with Desai claiming that the company saw significant growth in its large enterprise segment during Q3. The company’s self-service business also delivered excellent results, according to Desai.

The MongoDB boss also noted that customers are expanding with the company as the addition of new customers continues to show strength. He boasted that other companies across geographies and industries are choosing MongoDB because the company provides a unified data platform.

MongoDB posts $2M+ loss despite impressive quarter

The company recorded a net loss of $2.01 million during the third quarter, representing a loss of approximately 2 cents per share based on 81.4 million shares outstanding. MongoDB also reported a loss of approximately $9.78 million during the same period in 2024, or a loss of 13 cents per share. However, the company expects its Q4 revenue to reach between $665 million and $670 million.

Loss from operations was $18.4 million for Q3 of fiscal 2026, compared to a loss of $27.9 million from operations in the same period in 2024. MongoDB used $1.7 million of cash to make principal payments of finance leases, bringing free cash flow to $140.1 million. 

However, the company had over $2.3 billion in cash, cash equivalents, restricted cash, and short-term investments as of October 31. It also generated $143.5 million of cash from operations during the three months ended October 31.

Meanwhile, Desai emphasized that MongoDB delivered higher-than-expected Q3 results that exceeded the high end of his company’s guidance. He added that his company also delivered meaningful margin outperformance as it executed its plans to drive profitable growth.

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