What Makes Atlas the Core Driver of MongoDB's Revenue Growth?

MongoDB’s MDB Atlas has become a central pillar of the company’s platform strategy. In the first quarter of fiscal 2026, MongoDB highlighted strong adoption of Atlas across industries, including customers like CSX and LG Uplus, which are leveraging the platform for real-time operations and AI capabilities. The company saw its highest total customer net additions in over six years, driven primarily by Atlas, with self-serve channels contributing significantly to growth.

In the fiscal first quarter, total revenues were $549 million, up 22% year over year. Atlas revenues grew 26% and accounted for 72% of total revenues, compared to 70% in the prior year. Atlas customer count reached over 55,800, up from 47,700 a year ago. 

MongoDB expects Atlas to continue playing a key role in its long-term strategy. For fiscal 2026, Atlas growth is embedded in the company’s raised revenue guidance of $2.25–$2.29 billion, reflecting continued confidence in its performance. Subscription revenues make up the vast majority of MongoDB’s business, with Atlas serving as the core component of this segment. The Zacks Consensus Estimate for MongoDB’s subscription revenues for the fiscal second quarter is pegged at $537.5 million, with the estimate for Atlas customers pinned at roughly 55,863.

To support future growth, MongoDB is expanding its efforts in application modernization and AI. The company recently acquired Voyage AI and plans to enable users to generate embeddings directly from data within MongoDB. MongoDB is also hiring experienced enterprise leaders, investing in developer training and certifications, and enhancing self-serve tools to drive greater Atlas adoption.

MDB Faces Stiff Competition in the Cloud Database Space

MongoDB faces growing competition from Amazon’s AMZN DynamoDB and Couchbase BASE, both of which are expanding their presence in the cloud database market.

Amazon’s DynamoDB has added multi-region strong consistency to its Global Tables, letting apps read and write data across AWS regions with the same accuracy. This makes Amazon’s DynamoDB stronger in the cloud database space, especially for apps that need high reliability.

Couchbase launched a new version of its cloud database using Memory-First Computing Platform to support AI agent workflows. This lets large language models take actions directly on Couchbase clusters. It’s designed for smarter, real-time systems and supports a future of connected, AI-powered tools.

MDB’s Share Price Performance, Valuation and Estimates

MDB shares have lost 8.7% in the year-to-date (YTD) period, underperforming the Zacks Internet – Software industry’s growth of 14.3% and the Zacks Computer and Technology sector’s return of 6.9%.

MDB’s YTD Price Performance

From a valuation standpoint, MongoDB stock is currently trading at a  forward 12 months Price/Sales ratio of 6.89X compared with the industry’s 5.74X. MDB has a Value Score of F.

MDB Valuation

The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at 64 cents per share, which has been revised upward by a nickel over the past 30 days, indicating 8.57% year-over-year decline.

MongoDB, Inc. Price and Consensus

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

MongoDB currently carries a Zacks Rank #2 (Buy). 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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