MongoDB Is Rallying After Earnings. Here's What It Really Means for Investors.

• MongoDB’s Q3 net study crushed analysts’ expectations.

• It raised its gross and adjusted EPS guidance for the year.

• But overmuch optimism is present baked into the stock's valuation.

• 10 stocks we similar amended than MongoDB ›

MongoDB's (NASDAQ: MDB) banal surged by much than 20% connected Tuesday successful effect to its latest net report. In its fiscal 2026 3rd 4th (which ended connected Oct. 31), the database absorption company's gross roseate 19% twelvemonth implicit twelvemonth to $628 million, exceeding analysts' statement estimates by $35 million.

Its adjusted net per stock (EPS) of $1.32 besides bushed the statement forecast by $0.53 and marked a large betterment from its adjusted nonaccomplishment per stock of $1.16 a twelvemonth earlier.

Management besides raised its guidance. For the fiscal twelvemonth (which ends successful January), it expects its gross to emergence 21% arsenic its adjusted EPS grows by 30% to 31%. It had antecedently forecast that its gross would emergence by 16% to 17% and that adjusted EPS would beryllium adjacent to flat.

Does that beat-and-raise show marque MongoDB a large maturation banal to bargain successful this choppy market? Let's instrumentality a caller look astatine its maturation rates and valuations to decide.

MongoDB's namesake level helps companies store ample amounts of information successful non-relational databases. That sets it isolated from older relational databases, which store information successful rigidly structured tables and rows. Non-relational databases tin usually beryllium scaled, tweaked, and customized for circumstantial tasks much easy than relational databases.

MongoDB besides offers a subscription-based unreality platform, Atlas, which helps its clients analyse each of that data. It already serves much than 62,500 customers worldwide -- including bluish spot giants similar Verizon Communications, Adobe, and Cisco Systems -- and it's moving with implicit 1,000 tech and work partners.

MongoDB faces contention from bigger database companies similar Oracle, which offers some relational and non-relational databases, and unreality infrastructure giants similar Amazon, which integrate database services into their ain platforms. However, those tech giants often fastener their customers into their sticky ecosystems.

By contrast, MongoDB tin beryllium integrated into Amazon Web Services (AWS), Microsoft Azure, and different unreality platforms, making it a much flexible choice. That's peculiarly utile for companies that tally their services crossed aggregate clouds.

From fiscal 2018 to fiscal 2025, MongoDB's gross grew astatine a compound yearly complaint of 44%, its adjusted gross borderline expanded from 72% to 76%, and its adjusted operating borderline improved from antagonistic 19% to affirmative 15%. But implicit the past 3 years, its gross maturation has cooled off.