MongoDB Shares Plunge as Growth Expectations Fall Short

NEW YORK, NY — MongoDB Inc. shares fell over 20% following the company’s announcement of a slowdown in expected growth for the upcoming fiscal year 2026, significantly missing analyst projections.

During an earnings call, the database software company disclosed that it anticipates adjusted earnings per share (EPS) between $2.44 and $2.62, with revenue estimates ranging from $2.24 billion to $2.28 billion. In contrast, analysts were expecting EPS of $3.34 and total revenue of $2.32 billion.

The disappointing guidance attributes its roots to a slowdown in its Atlas cloud database service, with projected revenue growth of just 12.7%, marking the slowest rate since the company’s public market debut in 2017.

Srdjan Tanjga, MongoDB’s finance chief, emphasized the challenges the company faces, noting a lag in growth for new applications utilizing its Atlas service. Despite this, the company plans to increase hiring and pursue deals with larger enterprises to bolster its market position.

Looking ahead to the fiscal first quarter, MongoDB projects adjusted EPS of between 63 cents and 67 cents, alongside revenue between $524 million and $529 million. Analysts surveyed by LSEG had previously forecasted EPS of 62 cents and revenue of $526.8 million.

In light of the less favorable outlook, Wells Fargo analyst Andrew Nowinski downgraded MongoDB’s shares to equal weight, adjusting his price target downward. “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,” Nowinski stated.

Interestingly, the company’s results for the fourth quarter exceeded expectations, with earnings reported at $1.28 per share, excluding certain items, on revenue of $548 million. Analysts had expected a substantially lower EPS of 66 cents and $520 million in sales. Notably, revenues increased by 20% compared to the previous year, and the company added 1,900 new customers, bringing its total customer count to approximately 54,500.

As MongoDB navigates this challenging phase, investors and industry watchers will continue to assess its strategies and performance in the highly competitive cloud database market.