MongoDB Inc. shares rallied sharply in after-hours trading Thursday after the database company reported fiscal first-quarter results that exceeded expectations and lifted its full-year guidance, driven by robust demand for its cloud-based Atlas platform.
Shares climbed 21.9% to approximately $397 in extended trading, building on a 10.6% gain during the regular session that closed at $325.68, according to Webull data.
For the quarter ended April 30, MongoDB posted revenue of $687.6 million, a 25% increase from $549.0 million in the same period last year. Subscription revenue rose 25% to $666.1 million, while services revenue grew 22% to $21.5 million. The company swung to profitability, reporting net income of $4.4 million, or 5 cents per share, compared with a net loss of $37.6 million a year earlier.
On an adjusted basis, earnings came in at $1.32 per share, surpassing the FactSet consensus estimate of $1.19 per share on revenue of $665 million, as reported by Investor's Business Daily.
The standout performer was MongoDB's Atlas cloud database product, which saw revenue jump more than 29% during the quarter. This growth was a key factor behind the company's decision to raise its fiscal 2027 outlook. MongoDB now expects full-year revenue in the range of $2.92 billion to $2.96 billion, up from its prior forecast of $2.86 billion to $2.90 billion issued in March. The company also raised its adjusted earnings per share guidance to between $5.95 and $6.14, compared with the previous range of $5.75 to $5.93.
CEO CJ Desai attributed the strong performance to "better-than-expected first quarter results," highlighting enterprise demand and new artificial intelligence projects. "Based on the momentum, we are raising our fiscal 2027 guidance," Desai said.
The positive results mark a sharp reversal from March, when MongoDB shares plunged 27% after a weak profit forecast and concerns about Atlas growth. Thursday's beat provided clearer evidence that cloud demand is holding up, a key metric for investors who have been watching software companies for signs that AI spending is translating into paying customers.
MongoDB's balance sheet also showed improvement. Free cash flow surged to $197.5 million from $105.9 million in the year-ago period, while remaining performance obligations—a measure of future revenue—climbed 88% to $1.46 billion.
For the current quarter, MongoDB guided for revenue of $729 million to $734 million and adjusted earnings between $1.58 and $1.61 per share. The revenue midpoint of $731.5 million easily beat the Street's estimate of $701 million, and the earnings range also came in above the $1.29 per share analysts had expected.
Wall Street analysts turned more bullish ahead of the report. Canaccord Genuity raised its price target on MongoDB to $400 from $375, maintaining a buy rating. Cantor Fitzgerald lifted its target to $416, while Rosenblatt kept its $385 target unchanged, according to MarketBeat and Benzinga data.
MongoDB's gains follow strong results from other cloud and data-focused software companies, including Snowflake and Datadog, which have also reported better-than-expected numbers recently. Investors have been closely watching these names for clues that enterprise cloud and AI spending remains resilient despite macroeconomic uncertainties.
However, the company cautioned that Atlas usage could be affected if customers reduce cloud spending or delay new workloads. MongoDB's statement noted that outcomes remain tied to subscription renewals, customer growth, competition, macroeconomic factors, and the payoff from AI product investments.
