MongoDB Posts Strong Q2, Enterprise AI Workloads Drive 30% Revenue Growth

Shares of MongoDB Inc (NASDAQ:MDB) tanked in early trading on Wednesday, despite the company reporting upbeat second-quarter results.

Here are some key analyst takeaways:

• RBC Capital Markets analyst Rishi Jaluria maintained an Outperform rating, and reduced the price target from $515 to $465.
• Rosenblatt Securities analyst Blair Abernethy reiterated a Buy rating and raised the price target from $395 to $445.
• DA Davidson analyst Rudy Kessinger maintained a Buy rating and price target of $465.

Check out other analyst stock ratings.

RBC Capital Markets: MongoDB reported strong quarterly results, with beats across all metrics, Jaluria said in a note. Revenue grew around 30% year-on-year to $771.8 million and non-GAAP earnings came in at $1.90 per share, topping consensus estimates of $735.3 million and $1.61 per share, respectively, he added.

"The launch of search and vector search on EA saw immediate demand as customers bring AI capabilities into a self-managed environment," the analyst wrote. Management guided to fiscal 2027 revenue, non-GAAP operating margin and non-GAAP earnings ahead of consensus estimates, he further stated.

Rosenblatt Securities: MongoDB reported solid results with revenue growth of 30% driven by "strong core customer cloud-based Atlas consumption growth," Abernethy said. Atlas now contributed around 73% of the company’s total revenue, he added.

The non-Atlas business outperformed, growing 36% year-on-year, due to widespread strength, the analyst stated. "Mongo’s core enterprise customers are continuing to modernize their applications and increasingly see MongoDB as a strategic technology decision as they prepare their data estates for AI," he further wrote.

DA Davidson: MongoDB’s stock came under pressure following the second-quarter print, due to "hyperfixation" on Atlas growth, Kessinger said. Although Atlas growth decelerated to 28.9% year-on-year from 29.4% in the previous quarter, this was still at the high end of the potential upside range that management had indicated, he added.

Non-Atlas subscriber revenue growth was very strong at 36% year-on-year, with new AI functionality having a positive impact and "making sustained double-digit non-Atlas ARR growth seem increasingly durable," the analyst wrote. Management’s guidance raise for the second half of the year was "mostly Atlas driven," he further stated.

MDB Price Action: Shares of MongoDB had declined by 10.82% to $387.25 at the time of publication on Wednesday.

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