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On Thursday, KeyBanc analysts reiterated their Sector Weight rating on MongoDB stock (NASDAQ: NASDAQ:MDB) following a robust performance in the first fiscal quarter. With a "GOOD" overall Financial Health score according to InvestingPro, the company’s first-quarter results exceeded expectations, particularly in non-Atlas revenue, despite some challenges in Atlas growth. The stock currently trades near $200, with analysts setting price targets ranging from $160 to $430.
MongoDB’s management highlighted a strong rebound in consumption in May after a softer April. The company, which maintains impressive revenue growth of 19.2% over the last twelve months and a healthy current ratio of 5.2, saw its first quarter’s non-Atlas revenue bolstered by earlier-than-expected deal timings. This contributed to a 5-point operating margin beat due to revenue upside and slower hiring. The company provided guidance for the second fiscal quarter, indicating slightly higher revenue and margins. (InvestingPro subscribers have access to 8 more key tips about MongoDB’s financial health and growth prospects.)
For fiscal year 2026, MongoDB raised its revenue guidance by $10 million. This increase was less than the $22 million beat in the first quarter, attributed to deal timing and macroeconomic uncertainties. The company acknowledged the growing interest in PostgreSQL, especially after acquisitions by Snowflake (NYSE:SNOW) and Databricks, and emphasized the suitability of MongoDB’s document-based database for AI workloads.
While encouraged by the stability in the first quarter and an improved margin outlook, KeyBanc remains cautious about the modest quarter-over-quarter growth in Atlas, the competitive market momentum with PostgreSQL, and the need for continued investment in market education. Despite these challenges, MongoDB is focused on its enterprise and "run anywhere" strategy. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued, with analysts maintaining a bullish consensus recommendation of 1.82 (where 1 is Strong Buy and 5 is Strong Sell).
In other recent news, MongoDB has reported impressive financial results for its first fiscal quarter of 2026, surpassing Wall Street expectations. The company achieved a non-GAAP earnings per share of $1.00, which exceeded the consensus estimate of $0.66. MongoDB’s revenue reached $549 million, outperforming the anticipated $528.2 million, marking a 22% year-over-year increase. This growth was driven by the company’s Atlas revenue, which grew by 26% and now accounts for 72% of total revenue.
Following these strong results, MongoDB has raised its full-year revenue guidance to a range of $2,250-$2,290 million. The company also increased its operating margin guidance to 12% at the midpoint, highlighting its focus on profitability. In light of this performance, Citizens JMP analysts maintained their Market Outperform rating on MongoDB, setting a price target of $345.
Additionally, MongoDB’s non-GAAP operating margin stood at 15.9%, significantly higher than the consensus estimate of 10.8%. The company ended the quarter with over 57,100 customers, reflecting continued strong adoption across various industries. These developments underscore MongoDB’s strategic direction and robust financial health, as noted by its leadership during the earnings call.
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