Shares of MongoDB (MDB) surged in after-hours trading after the software company reported earnings for its second quarter of Fiscal Year 2026. Earnings per share came in at $1.00, which smashed analysts’ consensus estimate of $0.67 per share. In addition, sales increased by 23.7% year-over-year, with revenue hitting $591.4 million. This also beat analysts’ expectations of $553.93 million.
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MongoDB’s second-quarter results were driven by a 29% growth in Atlas revenue. In addition, the company achieved better-than-expected profit margins and the highest number of net new customer additions ever in the first half of the year at 5,000. Interestingly, MongoDB is also seeing strong demand from customers who are building AI applications, which the company claims is proof that it is “emerging as a key component of the AI infrastructure stack.”
As a result, the total number of customers increased to 59,900 by the end of the second quarter, which, according to the image below, shows that the company continues to steadily grow its user base each quarter.
2026 Outlook
The guidance also thrilled investors. In fact, management now expects revenue and adjusted earnings per share for Q3 2026 to be in the ranges of $587 million to $592 million and $0.76 to $0.79, respectively. For reference, analysts were expecting $582.4 million in revenue, along with an adjusted EPS of $0.70.
Is MDB Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MDB stock based on 24 Buys, eight Holds, and zero Sells assigned in the past three months. Furthermore, the average MDB price target is $273.10 per share, which implies an upside potential of 27.4%. However, it’s worth noting that estimates will likely change following today’s earnings report.
