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On Thursday, DA Davidson analyst Rudy Kessinger adjusted the price target for MongoDB (NASDAQ: NASDAQ:MDB) shares, reducing it from $360.00 to $275.00, while still maintaining a Buy rating on the stock. According to InvestingPro data, MongoDB currently trades near $264, with analyst targets ranging from $180 to $520, suggesting significant market uncertainty about the company’s valuation. MongoDB, a general-purpose database platform, reported its fiscal fourth quarter results, which included a notable performance by its Atlas (NYSE:ATCO) product. Atlas, which saw a year-over-year growth of 24%, or an adjusted 28-29% when accounting for unused commitment headwind, exceeded expectations in terms of consumption growth. This performance contributed to MongoDB’s overall revenue growth of 19.2% year-over-year, reaching $2 billion in the last twelve months, with an impressive gross profit margin of 73.3%.
The company’s non-Atlas offerings also saw strong results, partly due to multi-year term license outperformance. Despite the positive aspects of the report, MongoDB’s guidance for FY26 was lower than anticipated. The expectation of multi-year term licenses presenting a roughly $50 million headwind was a contributing factor to the conservative forecast.
However, Atlas growth for the upcoming year is anticipated to be around 21% year-over-year. Kessinger believes this estimate to be on the conservative side, considering the stable consumption growth and the higher contribution from new workloads acquired in the previous year. The analyst’s commentary reflected a continued positive outlook on MongoDB’s performance, despite the adjustment in the price target.
The revised price target by DA Davidson reflects a balance between MongoDB’s strong fourth-quarter performance and the cautious guidance for the future, taking into account various factors influencing the company’s revenue streams. The firm’s stance on MongoDB remains optimistic, with expectations for continued growth, particularly in the Atlas segment. InvestingPro analysis reveals several positive indicators, including strong liquidity with a current ratio of 5.2 and expectations for profitability this year. Discover more insights and 8 additional ProTips about MongoDB’s financial health and growth prospects with an InvestingPro subscription, including access to comprehensive Pro Research Reports covering what really matters for informed investment decisions.
In other recent news, MongoDB reported impressive fourth-quarter earnings, with a non-GAAP EPS of $1.28, far exceeding the consensus estimate of $0.66. The company’s revenue for the quarter reached $548.4 million, surpassing the expected $519.6 million, marking a 20% year-over-year increase. Despite the strong financial performance, MongoDB’s stock experienced a 16% decline in aftermarket trading, which analysts attribute to concerns over future revenue growth guidance. The company has set mixed projections for fiscal year 2026, anticipating a non-GAAP EPS between $2.44 and $2.62, which is below the consensus estimate of $3.35.
Additionally, MongoDB recently completed the acquisition of Voyage AI for $220 million, emphasizing its strategic focus on AI capabilities. Analyst firms have adjusted their price targets for MongoDB following these developments. Citizens JMP reduced the target to $345 while maintaining a Market Outperform rating, BofA Securities cut its target to $286 but kept a Buy rating, and Goldman Sachs lowered its target to $335, also maintaining a Buy rating. These adjustments reflect tempered revenue and margin forecasts for the upcoming fiscal year, despite MongoDB’s strong current performance.
MongoDB’s Atlas platform, a significant part of its business, showed a stable consumption trend, with revenue growing by 24% year-over-year. The company remains debt-free after redeeming its 2026 convertible notes, and its customer base has expanded to 54,500, including 2,396 customers with annual recurring revenue exceeding $100,000. Looking forward, MongoDB is focusing on strategic account expansion and new workload implementations, which are expected to drive future growth and recovery.
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