MongoDB Posts 30% Revenue Growth and Record Customer Adds, Then Watches Its Stock Drop 13%

Quick Facts

• MongoDB revenue rose 30% year-over-year to $771.8 million in Q2 FY2027, beating analyst estimates of $735 million.
• Shares fell 13.18% in after-hours trading to $377 despite the beat, as Q3 guidance implied growth decelerating to roughly 21%.
• Remaining Performance Obligations surged 91% year-over-year to $1.52 billion, and the company added a record 2,900 net new customers in the quarter.

MongoDB reported its strongest quarterly revenue growth in years on September 1, then watched its stock crater. The database company posted Q2 fiscal 2027 results that cleared Wall Street’s targets on every major metric, yet shares dropped 13.18% in after-hours trading to $377, down from a regular-session close of $434.26.

Revenue for the quarter ended July 31 came in at $771.8 million, a 30% increase year-over-year and well above the analyst consensus of $735 million. Subscription revenue grew 31% to $747 million. Services revenue rose 29% to $24.6 million.

Earnings before stock compensation and similar costs hit $1.90 per share, beating the Street’s estimate of $1.62 and representing a 90% jump from the prior year. The company reported a GAAP net profit of $40.9 million, reversing a $47 million net loss in the same period last year. Adjusted net income climbed 86% to $163 million.

Gross profit margin expanded to 74%, up from 71% a year earlier. The non-GAAP operating margin reached 24%, a gain of 900 basis points year-over-year. Free cash flow nearly doubled to $137.6 million.

Atlas, MongoDB’s cloud database service, grew approximately 29% year-over-year for the fifth consecutive quarter. Enterprise Advanced and other products had their strongest quarter in three years, growing 36% year-over-year. Remaining Performance Obligations surged 91% to $1.52 billion, signaling strong future contracted revenue.

CEO CJ Desai called the results a reflection of the company’s core role in enterprise infrastructure. “We delivered strong second quarter results, highlighted by 30% year-over-year revenue growth — the highest level of growth in several years — and continued strong profitability,” Desai said. “This performance reflects the mission-critical role our platform plays for customers, with strength driven by core enterprise workloads and early momentum with AI use cases.”

CFO Mike Berry highlighted consistency in the cloud business. “This is the fifth consecutive quarter with Atlas growth of approximately 29%,” he said. He also noted that EA and Other revenue posted its strongest quarter in three years and that larger U.S. enterprise customers remain a key growth driver heading into the second half of the fiscal year.

MongoDB ended the quarter with 70,600 customers and added a record 2,900 net new customers during the period.

For the full fiscal year 2027, the company raised its revenue guidance to $2.99 billion to $3.03 billion, up from a prior range of $2.92 billion to $2.96 billion. It raised its earnings guidance to $6.39 to $6.58 per share, versus the prior range of $5.95 to $6.14. Both figures came in above analyst consensus estimates of $2.96 billion in revenue and $6.13 per share in earnings. The company also raised its Atlas full-year growth outlook to approximately 27% from roughly 24%.

Q3 guidance called for revenue of $756 million to $761 million and non-GAAP earnings of $1.57 to $1.61 per share. While those numbers topped the consensus estimate of $743.9 million, the implied growth rate of roughly 21% at the midpoint represents a step down from Q2’s 30% pace. Management acknowledged that Q3 represents the toughest Atlas comparable of the year.

The selloff appears driven by a combination of factors: a stock that had already surged roughly 32% in the month before the report, a valuation still sitting at approximately 59 times next year’s expected earnings even after the drop, and a forward outlook that implies slowing momentum. Broader market conditions added pressure as September began, historically one of the weakest months for equities. MongoDB shares remain well above their 52-week low of $215.68 but fell further from the 52-week high of $473.10.

Read more: MongoDB delivers stellar earnings and revenue beat, but its stock tanks anyway