Canopy Growth stock tumbles after announcing $200 million share sale plan
Investing.com - Goldman Sachs raised its price target on MongoDB (NASDAQ:MDB) to $325.00 from $270.00 while maintaining a Buy rating following the database company’s strong fiscal second-quarter results. According to InvestingPro data, analyst targets for the $17.57 billion market cap company range from $170 to $405, with the stock currently trading near its Fair Value.
MongoDB reported revenue that exceeded consensus estimates by 6.8%, with its Atlas cloud service accelerating to 29% growth compared to 26% in the first quarter. Operating income came in 51% above expectations, while free cash flow margin outperformed consensus by 1,200 basis points. The company maintains impressive fundamentals with a 72.89% gross profit margin and a strong liquidity position, reflected in a current ratio of 5.89.
The database provider issued guidance that reflected consecutive quarters of Atlas growth acceleration, healthier Enterprise Advanced renewal activity, and raised its full-year revenue and operating margin outlook. MongoDB’s revised guidance implies 17-18% subscription growth for fiscal year 2026. InvestingPro analysis reveals several positive indicators, including expected net income growth and analysts predicting profitability this year. Subscribers can access 6 additional ProTips and comprehensive financial analysis in the Pro Research Report.
Goldman Sachs noted that Atlas is now trending in the high-20% growth range at scale, which it considers best-in-class among consumption-based peers. The firm also highlighted MongoDB’s cost discipline, multi-quarter inflection in Atlas new logo growth, and adoption by over 8,000 AI startups. The company’s overall revenue growth remains strong at 19.24% over the last twelve months, supporting its market position.
The investment bank believes MongoDB’s push upmarket, combined with its self-service capabilities, vertically integrated AI platform, and architectural advantages position the company to sustain mid-20% Atlas growth with improving operating margins as Atlas cohorts expand.
In other recent news, MongoDB reported its Q2 2026 earnings, exceeding both earnings per share (EPS) and revenue forecasts. The company achieved an EPS of $1, significantly surpassing the expected $0.67, marking a 49.25% surprise. Revenue came in at $591.4 million, which was above the anticipated $553.94 million. These results highlight MongoDB’s strong financial performance for the quarter. Despite the positive earnings report, MongoDB’s stock experienced a decline in after-hours trading. The stock closed at $217.80, down from its previous close of $218.44. These developments have been closely watched by investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.