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Investing.com - MongoDB (NASDAQ:MDB), currently valued at $17.57 billion, saw its stock rise after KeyBanc analyst Eric Heath reiterated a Sector Weight rating on the database company following its strong fiscal second-quarter results.
MongoDB reported significant outperformance in its Atlas cloud database service, which exceeded expectations by $20 million or 5%, showing acceleration of 3 percentage points. The company’s non-Atlas business also performed well, contributing to an overall 7% revenue beat, the largest since fiscal third-quarter 2024. According to InvestingPro, MongoDB maintains impressive revenue growth of 19.24% and a robust gross profit margin of 72.89%.
Management highlighted several competitive wins against PostgreSQL/pgvector, including a notable victory with a leading electric vehicle company for vector search capabilities. This customer is currently using MongoDB with over 1 billion vectors and plans to increase data usage tenfold over the next year. InvestingPro data shows MongoDB holds more cash than debt on its balance sheet, with 8 additional ProTips available for subscribers.
Based on healthy consumption trends in the second quarter, MongoDB raised its fiscal year 2026 revenue guidance by $80 million at the midpoint. The company now expects Atlas growth in the mid-20% range for the second half of the fiscal year, compared to previous consensus estimates of 20% year-over-year growth.
MongoDB also increased its fiscal 2026 EBIT margin forecast by 1.5 percentage points, citing higher revenue and continued cost discipline outlined by new CFO Mike Berry in the previous quarter.
In other recent news, MongoDB has reported strong quarterly earnings, with revenue reaching $591 million, marking a 24% year-over-year increase. This performance exceeded consensus estimates by $37 million, driven by a notable 29% growth in its Atlas cloud service. The company also saw its strongest net new customer additions in six years. Following these results, several analysts have raised their price targets for MongoDB. Bernstein increased its target to $338, citing the accelerating growth of Atlas. Rosenblatt Securities adjusted its target to $305, noting the strength in Enterprise Advanced and multi-year renewal deals. Cantor Fitzgerald raised its target to $312, highlighting revenue and EBIT figures that surpassed expectations. Morgan Stanley also increased its price target to $325, pointing to customer base growth and margin expansion. Meanwhile, Mizuho set a new target of $250, maintaining a Neutral rating while acknowledging the company’s robust quarterly performance.
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