MongoDB Stock Sinks 14% as Atlas Growth Misses Expectations

MongoDB (NASDAQ: MDB) shares plunged more than 14% in premarket trading Wednesday despite stronger-than-expected fiscal second-quarter 2027 results, as investors focused on the lack of growth acceleration in the company’s Atlas cloud database business.

MongoDB reported adjusted earnings of $1.90 per share, comfortably beating analysts’ consensus estimate of $1.61. Revenue reached $771.8 million, topping expectations of $735.16 million and rising 30% from a year earlier. The increase represented MongoDB’s fastest overall revenue growth in several years.

However, Atlas revenue grew 29% year over year to $565.9 million, maintaining roughly the same growth pace recorded in recent quarters. The steady performance disappointed investors who had expected stronger acceleration following robust cloud spending and consumption trends across major technology companies.

MongoDB raised its fiscal 2027 revenue forecast to between $2.99 billion and $3.03 billion. The midpoint of $3.01 billion is above Wall Street’s $2.96 billion consensus estimate. The company also increased its adjusted earnings outlook to $6.39-$6.58 per share, compared with analysts’ expectations of $6.13.

CEO CJ Desai highlighted the company’s 30% year-over-year revenue growth and improving profitability, describing the quarter as another period of strong execution.

Enterprise Advanced and other revenue climbed approximately 36% from a year earlier. Adjusted operating income increased to $185.9 million, producing a 24% operating margin compared with 15% in the prior-year period. Free cash flow nearly doubled to $137.6 million.

For the fiscal third quarter, MongoDB expects revenue of $756 million to $761 million and adjusted earnings of $1.57-$1.61 per share.

Stifel analysts said the sharp MongoDB stock decline reflected elevated expectations for Atlas. While the cloud platform has maintained roughly 29% annual growth for five consecutive quarters, investors had anticipated an acceleration.

The analysts added that MongoDB’s third-quarter Atlas outlook implies approximately 26% growth, signaling another quarter of deceleration rather than the stronger momentum the market had hoped to see.