MongoDB Shares Plummet Following Disappointing Growth Forecast

Baltimore, MD — MongoDB Inc. shares dropped more than 20% after the database software company revealed a weaker-than-expected growth forecast for fiscal year 2026. The announcement, made during an earnings call, highlighted declining expectations for its Atlas cloud-based database service, which significantly influenced investor sentiment.

The company projected adjusted earnings per share (EPS) to range from $2.44 to $2.62 and revenue between $2.24 billion and $2.28 billion for the fiscal year. This falls short of analysts’ expectations of $3.34 EPS and $2.32 billion in revenue. The anticipated revenue growth of 12.7% represents the slowest growth rate since the company’s stock market debut in 2017.

Srdjan Tanjga, MongoDB’s finance chief, addressed the slowdown during the earnings call, noting, “We are seeing slower-than-expected growth in new applications harnessing our Atlas cloud-based database service.” Despite the slowdown, he mentioned that MongoDB is actively recruiting and pursuing contracts with larger enterprises.

For the fiscal first quarter, the company forecasted adjusted earnings between 63 cents and 67 cents per share, with revenue projected between $524 million and $529 million. Analysts from LSEG had estimated earnings of 62 cents and revenue of $526.8 million.

The disappointing outlook prompted Andrew Nowinski, a Wells Fargo analyst, to downgrade MongoDB shares to equal weight and revise his price target. In his statement, Nowinski noted, “With a smaller pool of multi-year deals, we believe it will be difficult to significantly outperform expectations in FY26 and therefore expect shares to remain range-bound.”

Despite the forecasted slowdown, MongoDB reported stronger-than-expected earnings for the fourth quarter. The company posted earnings of $1.28 per share, excluding items, on revenue of $548 million, exceeding LSEG’s expectations of 66 cents in EPS and $520 million in revenue. This represented a 20% increase in revenues compared to the same period last year.

During the quarter, MongoDB gained 1,900 new customers, bringing its total customer count to 54,500, a positive sign for its market presence despite the broader challenges.

— CNBC’s Jordan Novet contributed reporting.