Published by Global Banking & Finance Review®
Posted on March 3, 2026
2 min readLast updated: April 2, 2026
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MongoDB beat Q4 earnings with $695M revenue and $1.65 EPS, but shares dropped ~27% as Q1 earnings guidance of $1.15–$1.19 and cloud Atlas growth slowdown to 29% disappointed investors.
March 3 (Reuters) - MongoDB's shares plunged 27% to a six-month low on Tuesday after the software firm forecast first-quarter profit below estimates and disappointed investors with slower quarterly revenue growth for its cloud database product Atlas.
Revenue in the Atlas business, seen as a beneficiary of growing AI adoption, rose 29% in the fourth quarter ended January 31, down from 30% in the previous quarter, with UBS analysts highlighting that MongoDB did not offer a concrete explanation for the relatively softer performance.
"Q4 was more mixed with a slightly lower Atlas beat level and below consensus FY27 guidance. Some of this could well be conservatism but in this tape, investors don't have a lot of patience," said Barclays analysts.
More than 19 of 42 analysts covering the stock lowered their price targets after the results, LSEG data showed. Analysts also highlighted uncertainty around the long-term growth trajectory of Atlas.
The results were another sign of a shakeup in the software sector, whose stocks have been hammered in recent months by worries that AI integrations rolled out by startups such as Anthropic could erode revenue streams for the industry.
MongoDB was on pace to shed nearly $6 billion from its market valuation of $26.45 billion, if losses hold.
However, the company's overall revenue of $695 million topped analysts' average estimate of $667.2 million, according to data compiled by LSEG.
On an adjusted basis, the company had forecast first-quarter profit in the range of $1.15 to $1.19 per share, lower than analysts' average estimate of $1.20.
(Reporting by Kritika Lamba in Bengaluru)
MongoDB shares dropped as the company's cloud business growth slowed and its profit forecast came in below analysts' estimates.
Atlas revenue rose 29% in the fourth quarter, down from 30% in the previous quarter, disappointing some investors.
MongoDB reported $695 million in revenue, topping analysts' average estimate of $667.2 million.
More than 19 of 42 analysts lowered their price targets for MongoDB after the quarterly results and muted forecast.
Analysts highlighted uncertainty over Atlas's long-term growth trajectory, especially amid increased competition from AI-focused startups.
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