MongoDB Revenue Jumps 24% in Fiscal Q2

Key Points

• Revenue reached $591.4 million, up 24% year-over-year in the second quarter of fiscal 2026 and above management guidance.

• Cloud platform Atlas accounted for 74% of total revenue, with Atlas revenue up 29% year-over-year.

• Full-year revenue and non-GAAP earnings guidance were raised for FY2026 as the company achieved margin expansion.

• These 10 stocks could mint the next wave of millionaires ›

MongoDB (NASDAQ:MDB), a leading provider of general-purpose database software built around its document-based model, announced earnings for the quarter ended July 31, 2025, on August 26, 2025. The company delivered results that exceeded prior guidance, reporting $591.4 million in GAAP revenue versus the previous forecast of $548–$553 million, and non-GAAP earnings per share of $1.00, compared to $0.70 for Q2 FY2025. These outcomes reflected robust growth in MongoDB Atlas, its cloud database offering, as well as strong free cash flow and customer additions, while gross margins (GAAP) slipped modestly. Overall, Q2 FY2026 showed acceleration in platform adoption and operating leverage, prompting management to raise full-year FY2026 non-GAAP revenue and profit projections.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2026 earnings report.

Business Overview and Fundamental Focus Areas

MongoDB helps businesses store and manage data using what is known as a "document database," which is a way to keep data organized and accessible by grouping it in flexible records. Unlike older, relational databases that use rigid tables, document databases are easier to adapt to new types of digital applications and workflows, making them popular among developers.

The company’s growth currently centers on its cloud service, Atlas, while its traditional on-premises product, Enterprise Advanced, continues to decline as more customers move to cloud-based solutions. The company focuses on platform differentiation—standing out from competitors through its flexible data model—market expansion, integrating artificial intelligence features, and maintaining customer satisfaction through continued investments in developer tools and customer support.

Quarter Highlights: Financial and Operational Developments

During the period, MongoDB posted GAAP revenue of $591.4 million, reflecting a 24% increase year-over-year and coming in above its own prior forecasts. Non-GAAP earnings per share were $1.00, up from $0.70 in Q2 FY2025. These topline gains were fueled by the company’s Atlas cloud platform, which accounted for 74% of total revenue and grew 29% year-over-year. This shift signals strong customer adoption of Atlas, as cloud migration continues in the data management sector.

Customer numbers set new highs, with 2,800 customers added and net additions surpassing 5,000 in the first half of FY2026. The total customer base reached 59,900 as of July 31, 2025, up 18% from 50,700 as of July 31, 2024. Atlas-specific customers rose to 58,300, compared to around 49,200 as of Q2 FY2025. The number of customers bringing annual recurring revenue (ARR) above $100,000 reached 2,564, growing at a stable 17% year-over-year pace in Q1 FY2026.

Gross margin, which represents what is left from revenue after accounting for the direct costs to deliver products and services, was 74% on a Non-GAAP basis—down one percentage point from the prior year. This slight dip is attributed to the rising share of cloud workloads and the impact of the Voyage acquisition. The on-premises Enterprise Advanced product made up only 21% of subscription revenue, continuing its trend of decline from 24% in Q1 FY2026,

Non-GAAP income from operations reached $86.8 million, expanding the margin to 15%. Free cash flow turned positive at $69.9 million, rising from a negative $4.0 million in Q2 fiscal year 2025. The company spent $194.4 million on share buybacks, purchasing over 1 million shares, and closed the quarter with $2.3 billion in cash and short-term investments. On the product front, MongoDB expanded its suite of artificial intelligence–oriented features, adding new models from its Voyage AI unit and announcing partnerships with AI development ecosystem partners, broadening its offering for customers developing next-generation applications.

Key risks or areas of attention include continued margin compression, heightened competition, and a flat trend in the direct sales customer segment. Shareholders should also note that service revenue (consulting and training) grew by 33% year-over-year (GAAP), which points to increasing customer complexity and engagement but is a much smaller portion of total revenue.

Looking Ahead: Guidance and What to Watch

Management raised its outlook for the next quarter and full year. For the third quarter of fiscal 2026, expected revenue is $587–$592 million, with non-GAAP net income per share forecasted at $0.76–$0.79. Full-year revenue guidance for FY2026 moved up to $2.34–$2.36 billion, and non-GAAP earnings per share guidance increased to $3.64–$3.73 and reflect management’s confidence in maintaining growth and profitability momentum.

Going forward, investors should monitor the mix between cloud and legacy business lines, observe any further changes in gross margin linked to cloud and AI investments, and watch for evidence that the company can further expand among large enterprise customers even as direct sales growth plateaus. Competitive pressures from other database providers and public cloud platforms will also remain an ongoing factor in shaping business performance and market share.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,062%* — a market-crushing outperformance compared to 184% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 25, 2025

Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends MongoDB. The Motley Fool has a disclosure policy.