Here's our initial take on MongoDB's (NASDAQ: MDB) fiscal 2026 first-quarter financial report.
Key Metrics
| Metric |
Q1 FY25 |
Q1 FY26 |
Change |
vs. Expectations |
| Revenue |
$450.6 million |
$549.0 million |
+22% |
Beat |
| Earnings per share (adjusted) |
$0.51 |
$1.00 |
+96% |
Beat |
| Atlas revenue growth |
32% |
26% |
-6 pp |
N/A |
| Free cash flow |
$61.0 million |
$105.9 million |
+74% |
N/A |
Winning more customers
MongoDB added 2,600 net new customers in the first quarter of fiscal 2026, bringing its total customer count for the platform-agnostic, document-oriented database, software provider to approximately 57,100. That's the largest quarterly customer gain in six years. Most of those new customers are using Atlas, the company's managed database offering, while the rest opted for MongoDB Enterprise. Atlas revenue grew by 26% year over year in Q1 and accounted for 72% of overall Q1 revenue.
MongoDB's profitability improved substantially in Q1. While the company still posted a net loss according to generally accepted accounting principles (GAAP), that loss was more than cut in half from the prior-year period. Non-GAAP earnings per share nearly doubled, and free cash flow soared by 74%. MongoDB kept its sales and marketing spending roughly flat year over year and cut its general and administrative spending, which partially offset a rise in R&D spending and led to a small overall increase in operating expenses.
Along with its Q1 report, MongoDB announced an additional $800 million has been authorized for share repurchases. This brings the total authorization to $1 billion. Looking ahead to Q2, MongoDB expects revenue between $548 million and $553 million, and adjusted earnings per share (EPS) between $0.62 and $0.66.
Immediate market reaction
Share prices of MongoDB shot up 12% in after-hours trading Wednesday as investors digested the company's Q1 report. MongoDB beat analyst expectations across the board, and the major profitability improvements combined with solid Atlas growth gave investors plenty to like. MongoDB stock was down about 14% year to date going into the report, so if this rally holds, the stock should regain much of that lost ground on Thursday.
What to watch
MongoDB sees a big opportunity to ride the artificial intelligence (AI) wave and position its platform as an easy choice for companies looking to modernize applications. The company acquired Voyage AI, an AI model developer, earlier this year, a move aimed at helping customers build AI-powered applications. MongoDB also recently launched a public preview of its Model Context Protocol Server, enabling developers to interact with databases using natural language. With no end in sight to the AI boom, MongoDB is set to benefit from soaring AI demand.
Helpful resources
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MongoDB. The Motley Fool has a disclosure policy.
