MongoDB stock tumbled 20% Thursday after the database software company's sales outlook missed Wall Street's expectations. The guidance letdown overshadowed January-quarter results that beat views.
MongoDB said late Wednesday that it earned an adjusted $1.28 per share on sales of $548.4 million for the January-ended quarter. Analysts polled by FactSet projected the New York-based company would post adjusted earnings of 66 cents per share on sales of $521 million. Sales increased 20% year-over-year while non-GAAP earnings increased 48%.
However, MongoDB told investors it expects adjusted earnings of $2.44 per share to $2.62 per share for its current fiscal year, which ends with January 2026. Analysts were looking for adjusted earnings of $3.38 per share for the period. And MongoDB's fiscal 2026 sales projection of $2.26 billion missed the mark of $2.33 billion analysts had previously forecast.
Wedbush analyst Dan Ives, who rates MongoDB stock as outperform, said the company posted "top and bottom-line beats which will be overshadowed by the relatively weak FY26 (fiscal year 2026) guidance."
On the stock market today, MongoDB stock is down 20% at 211.17. Shares broke decisively below MongoDB's 50-day moving average.
MongoDB Looking For AI Boost
MongoDB says it has more than 50,000 users for its database software. Its offerings include the cloud-based Atlas. Optimism about the company's ability to harness AI demand for growth powered a more than 200% rally for MongoDB stock from late November 2022 to February 2024. But shares have struggled since then, including a 35% slide over the past 12 months — not including Thursday's early slide.
Chief Executive Dev Ittycheria in a press release said the company "delivered a strong end to fiscal 2025 with 24% Atlas revenue growth and significant margin expansion." He added that MongoDB is proving its advantages over legacy database providers to help businesses "innovate at AI speed with our flexible document model and seamless scalability."
Analysts still view MongoDB's Atlas software as likely to benefit from increased demand driven by AI. But the 13% growth in sales that MongoDB is projecting for its 2026 fiscal year would bring a further slowdown from 19% sales growth MongoDB posted in the January 2025 fiscal year. Sales grew 31% in the January 2024 year.
"MongoDB provided relatively weak guidance across the board for FY26 as the company sees a more gradual impact from its AI solutions into FY26 with a greater impact into FY27 with Atlas seeing stable consumption growth year-over-year to focus on new and larger workloads with non-Atlas subscription revenue expected to decline in FY26," Ives wrote to clients Thursday.
Ives reiterated an outperform call for MongoDB but lowered his price target to 300, from 360.
MongoDB Stock: Technical Ratings
MongoDB has now triggered sell-offs in back-to-back earnings reports. Shares fell 17% on MongoDB's fiscal third-quarter results in December, wiping out momentum the stock had built late in the year.
Shares are down to MongoDB's lowest levels since April 2023. Guggenheim analyst Howard Ma wrote late Wednesday that there is a "significant disconnect" between the strength of MongoDB's overall business and its current value.
"We believe the sell-off was exacerbated by MongoDB still maintaining its historically conservative guidance approach vs. peers guiding more aggressively," Ma wrote to clients.
Ma maintained a buy call but lowered his price target to 300 from 325.
Coming into the report, MongoDB stock had an IBD Composite Rating of 41 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
And the stock's Relative Strength Rating was a meager 22 out of 99. The RS Rating means that MongoDB stock has outperformed just 22% of all stocks in IBD's database over the past year.
