MongoDB shares jump on guidance raise, stock buyback hike

Published 05/06/2025, 09:52
© Reuters

Investing.com - Shares in MongoDB (NASDAQ:MDB) soared by more than 15% in premarket U.S. trading on Thursday after the software company lifted its annual guidance and hiked its share buyback program.

In its fiscal first quarter, MongoDB reported adjusted earnings per share (EPS) of $1.06 on revenue of $549.01 million, topping estimates of $0.51 and $528.0 million, respectively, thanks in part to an acceleration in sales at its Atlas cloud data management service.

"While MongoDB’s consumption model has some month-to-month volatility, including a softer April that rebounded in May, we continue to like this stock for long-term capital appreciation," analysts at Citizens led by Patrick Walravens said in a note to clients.

Looking ahead to its second quarter, the company said it expects to post adjusted EPS of $0.62 to $0.66 and revenue of $548.0 million to $553.0 million. That compared with Wall Street estimates for EPS of $0.61 on revenue of $550.8 million.

For fiscal 2026, adjusted EPS was guided in a range of $2.94 to $3.12, while revenue is projected to be between $2.25 billion and $2.29 billion. MongoDB had previously called for adjusted EPS of $2.44 to $2.62 on revenue of $2.24 billion to $2.28 billion. 

The firm also raised its stock buyback program by $800 million, taking the total to $1 billion.

"We believe MongoDB and its industry-leading NoSQL database, alongside the addition of VoyageAI technology (embedding and reranking to enhance positioning in AI market), should continue to benefit from data and application modernization, supporting upside to revenue estimates over the near term," analysts at Cantor led by Thomas Blakey wrote.

(Yasin Ebrahim contributed reporting.)

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