Will Atlas Momentum Help MDB Maintain Its Subscription Growth Trend?

MongoDB’s MDB Atlas platform is expected to remain central to the company’s business performance. As a fully managed cloud native database service, Atlas combines operational data, search, analytics and AI-powered retrieval within a unified environment. Its architecture is designed to simplify data infrastructure, enhance scalability across clouds and support enterprises in modernising applications with greater efficiency.

Atlas continues to anchor MongoDB’s subscription base, driven by steady adoption among enterprises and developers building data-intensive or AI-enabled applications. Its flexible consumption model and broad functionality have strengthened its relevance as organisations seek integrated, cloud-based data foundations.

The Zacks Consensus Estimate for the third quarter of fiscal 2026 pegs subscription revenues at $ 571.7 million, with Atlas revenues expected to reach $455.8 million, up 25.7% from the year-ago period. However, as Atlas expands further within MongoDB’s revenue mix, its infrastructure intensity could weigh on overall margins even as it sustains top-line momentum. The platform’s scale and enterprise adoption will therefore remain key factors shaping MongoDB’s profitability and subscription trajectory going ahead.

MDB’s Atlas Confronts Pressure From Rivals

MongoDB operates in a highly competitive market where Snowflake SNOW and Oracle ORCL continue to pursue similar subscription-based growth strategies. Snowflake positions its Data Cloud as a rival to MongoDB Atlas, emphasising elastic workload scaling and AI-enabled analytics, while its consumption-driven pricing closely mirrors MongoDB’s approach. Oracle, through its Oracle Autonomous Database, targets mission-critical workloads that demand automation, reliability and advanced data security. Both Snowflake and Oracle remain well entrenched in the enterprise cloud ecosystem, with Snowflake expanding its AI data capabilities and Oracle leveraging its deep enterprise relationships.

MDB’s Share Price Performance, Valuation and Estimates

MDB shares have appreciated 50.4% in the year-to-date (YTD) period, outperforming the Zacks Internet – Software industry’s growth of 26.4% and the Zacks Computer and Technology sector’s return of 10.3%.

MDB’s YTD Price Performance

From a valuation standpoint, MongoDB stock is currently trading at a forward 12-month Price/Sales ratio of 10.75X compared with the industry’s 5.09X. MDB has a Value Score of F.

MDB Valuation

The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings is pegged at 79 cents per share, which is up by a penny over the past 30 days, indicating a 31.9% decline year-over-year.

MongoDB, Inc. Price and Consensus

MongoDB, Inc. price-consensus-chart | MongoDB, Inc. Quote

MongoDB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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