3 Reasons to Buy MDB Stock Despite 10.2x P/S Premium Valuation

MongoDB MDB stock may trade at a premium valuation that gives some investors pause, but the modern database software company has built a competitive moat. Its flexible document model supports unstructured and semi-structured data for AI workloads, while Atlas unifies operational database, vector search and Voyage AI embeddings within a single architecture, eliminating fragmented data stacks. That differentiation is translating into performance. In the fiscal third quarter, MDB generated revenues of $628.3 million, up 19% year over year, with non-GAAP operating margins expanding to 20% from 19% in the year-ago period.

MDB raised its full-year fiscal 2026 revenue guidance to $2.434 billion–$2.439 billion, representing 21-22% year-over-year growth, signaling management's confidence in sustained growth momentum.

The Zacks Consensus Estimate for MDB's fiscal 2026 revenues is pegged at $2.44 billion, indicating 21.45% year-over-year growth. The consensus mark for earnings is pegged at $4.79 per share, indicating a 30.87% increase from the previous year.

MongoDB, Inc. Price and Consensus

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

MDB has delivered impressive returns for shareholders over the past six months, with shares surging 70.6%, outpacing the broader Zacks Computer and Technology sector's increase of 10.5%, as well as the Zacks Internet-Software industry, which has declined 20.1% in the same timeframe.

MongoDB Outperforms Sector and Industry

MDB's Atlas Adoption Signals a Platform-Level Shift

Atlas has evolved beyond a cloud database into a unified operational platform supporting transactional workloads, full-text search, vector search and stream processing within a single architecture. Its document model accommodates structured, semi-structured and unstructured data under one schema, giving enterprises the flexibility that rigid relational systems struggle to deliver. As organizations modernize application stacks, Atlas is increasingly becoming the preferred platform.

Deployments during the fiscal third quarter demonstrate the depth. A major global insurance provider has standardized on Atlas to modernize mission-critical systems, expanding to nationwide operations while accelerating product rollouts. A global media company has rebuilt its recommendation infrastructure on Atlas and Atlas Vector Search across over 70 websites, cutting latency by 90%, lowering operating costs by 65% and increasing click-through rates by 35%.

Atlas revenues grew 30% year over year in the fiscal third quarter and constituted 75% of total revenues, up from 68% in the year-ago period. The Zacks Consensus Estimate for fiscal 2026 Atlas revenues is pegged at $1.8 billion, indicating 28% year-over-year growth, reinforcing Atlas as MDB’s primary growth engine.

Voyage AI Puts MDB at the Heart of AI Stacks

MongoDB has been steadily expanding its AI capabilities, and the Voyage AI acquisition earlier in fiscal 2026 marked a pivotal move. By January 2026, MDB will have integrated Voyage AI’s embedding and reranking models directly into Atlas, creating a unified data intelligence layer. Developers can now build and deploy production-grade AI applications without moving or duplicating data across separate systems. This integration signals stronger AI positioning, greater enterprise stickiness and expanding long-term monetization potential for MDB.

MDB’s JSON native document architecture provides a structural edge by allowing transactional data, search and vector retrieval to operate within a single environment. The introduction of Automated Embedding for Vector Search further simplifies deployment by automatically generating and storing embeddings whenever data is inserted or updated, eliminating the need for separate embedding pipelines and reducing complexity for enterprise AI teams.

Adoption is becoming visible among AI native companies. Mercor runs its hiring platform on Atlas using Voyage embeddings and Atlas Vector Search to support 50% month-over-month growth, indicating Voyage AI's role as a meaningful growth catalyst.

MDB's Strong Partner and Customer Network Fuels Long-Term Growth

MongoDB has been building a go-to-market model that draws on enterprise sales, self-serve adoption and deep integrations with hyperscalers. Native integrations with Microsoft's MSFT Azure, Amazon's AMZN AWS and Alphabet's GOOGL Google Cloud Platform place Atlas directly inside enterprise cloud environments, reducing deployment friction and reinforcing MDB's role as the operational database layer across hybrid and multi-cloud architectures. 

The January 2026 expansion of MongoDB for Startups, announced alongside launch partners Fireworks AI and Temporal, further widens this funnel. MongoDB for Startups companies represent over $200 billion in combined valuation, and the program gives early-stage companies a production-ready data foundation with matched credits and coordinated onboarding. As the global AI market is projected to reach $1.77 trillion by 2032, per Fortune Business Insights, this positions MDB as the default data infrastructure choice for the next generation of AI-native companies building on Amazon, Microsoft and Alphabet cloud environments.

Customer momentum remains robust. MDB added 2,600 customers in the fiscal third quarter, bringing the total to more than 62,500, up 18.8% year over year. Year-to-date customer additions reached 8,000, representing 65% growth versus the prior-year period, driven primarily by the self-serve channel. The Zacks Consensus Estimate for fiscal 2026 total customers is pegged at 64,200, up 17.8% year over year.

Investment Outlook

Investors should buy MDB stock now despite the elevated forward 12-month price-to-sales ratio of 10.2x, which compares to 6.37x for the sector and 3.86x for the industry.

MDB's P/S F12M Ratio

MDB's Atlas platform acceleration, deepening Voyage AI integration, and an expanding partner ecosystem spanning Microsoft, Amazon and Alphabet collectively justify the premium. The company represents a compelling combination of durable revenue growth, improving profitability and a structurally differentiated platform that is increasingly central to both enterprise modernization and AI application development. MDB currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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