MongoDB Trades at a P/S of 7.08X: Should You Still Buy MDB Stock?

MongoDB MDB shares are trading at a premium, as suggested by a Value Score of F. In terms of the forward 12 months Price/Sales, MDB is currently trading at 7.08X, above the Internet – Software industry’s 5.91X.

We believe MongoDB’s expanding enterprise clientele and AI momentum justify the premium valuation. The company is benefiting from both operational efficiency and an innovative product portfolio. Can these factors that drove upward guidance revision make MDB stock a compelling buy at current levels? Let’s find out.

MDB’s F12M P/S Ratio

MDB Rides on New Launches and Customer Wins

MongoDB shares have gained 8.7% in the past month, outperforming the Zacks Computer and Technology sector’s appreciation of 8.1% and the Zacks Internet – Software industry’s return of 7%. The outperformance has been partly due to a stellar fiscal first-quarter performance with revenues growing year over year, accompanied by raised guidance for fiscal 2026.

MDB’s One-Month Price Performance

MongoDB continues to gain traction even as rivals like Amazon’s AMZN DynamoDB and Couchbase BASE expand their presence. Amazon recently introduced multi-region strong consistency for DynamoDB Global Tables, while Couchbase deepened its India footprint with a new state-of-the-art office. Still, MongoDB added the most number of new customers in over six years in the first quarter of fiscal 2026, with strong enterprise wins like CSX and Zepto, highlighting adoption across industries despite moves by Amazon and Couchbase.

In the reported quarter, MongoDB launched version 8.0, with adoption doubling that of the previous major version. The company advanced its AI capabilities with Voyage 3.5, which improved embedding accuracy and cut storage costs by more than 80%. MongoDB plans to launch in-platform embedding generation soon, further supporting its position as a unified, AI-ready platform.

Revenues grew 22% year over year to $549 million, with Atlas up 26% and operating income more than doubling to $87 million in the fiscal first quarter.

For fiscal 2026, MongoDB now expects revenues in the range of $2.25 billion to $2.29 billion, an increase of $10 million from its prior guidance. Non-GAAP earnings per share are expected to be between $2.94 and $3.12.

The Zacks Consensus Estimate for MongoDB’s fiscal 2026 revenues is pegged at $2.28 billion, indicating growth of 13.48% on a year-over-year basis.

The consensus mark for fiscal 2026 earnings is pinned at $3.03 per share, which has been revised upward by 18.36% over the past 30 days. The estimate indicates a year-over-year decline of 17.21%.

MongoDB, Inc. Price and Consensus

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

MDB Strengthens AI Edge with Integrated Platform

MongoDB has been steadily benefiting from the rising demand for AI-powered applications. The company’s document model is well-suited for handling fast-changing, unstructured data required by real-world AI. The acquisition of Voyage AI strengthened this capability further, with Voyage 3.5 improving embedding accuracy and cutting storage costs significantly.

MongoDB’s unified platform combines real-time data, retrieval and search, helping developers avoid complex integrations. Companies like LG Uplus are using their AI tools to support thousands of agents with faster, more accurate responses, reinforcing MongoDB’s position in the AI space. 

An expanding partner base is noteworthy. MongoDB recently announced backup integration with Rubrik RBRK and Cohesity. These partnerships enhance data protection for enterprise customers, especially in hybrid cloud environments. Positive sentiment around MongoDB’s collaboration with Rubrik and Cohesity, along with broader growth signals, has contributed to the recent share price gains. Rubrik and Cohesity’s involvement reinforces MDB’s focus on enterprise-grade resilience.

Conclusion: Time to Buy MDB Stock?

MongoDB’s shares are undeniably expensive, yet upward estimate revisions and improving profitability give that premium real support. The valuation underscores market confidence in the company’s ability to deliver innovation-led growth, even amid macroeconomic uncertainties. Continued enterprise adoption, product innovation and raised guidance suggest the stock is well-positioned for long-term growth.

MongoDB stock is currently trading above the 50-day moving average, indicating a bullish trend.

MDB’s 50-Day SMA

MongoDB currently has a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 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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