MongoDB Inc. experienced a significant stock surge following the release of its third-quarter financial results, which far exceeded Wall Street expectations and were powered by strong demand linked to artificial intelligence (AI). The company's shares jumped 23% to $404.81 in premarket trading, extending a rally that has positioned it as one of 2025's top performers.
For Q3, MongoDB reported adjusted earnings per share (EPS) of $1.32, easily beating the analyst consensus of $0.81. Revenue rose 19% year-over-year to $628.3 million, surpassing the forecast of $593.9 million. The company also raised its full-year fiscal 2026 guidance, now expecting adjusted EPS of $4.76 to $4.80 (up from $3.64 to $3.73) and revenue of $2.43 billion to $2.44 billion (increased from $2.34 billion to $2.36 billion).
Fourth-quarter guidance was equally optimistic, with revenue projected between $665 million and $670 million and adjusted EPS of $1.44 to $1.48, both above analyst estimates. CEO Chirantan "CJ" Desai attributed the strong performance to broad-based demand across industries, supported by growth from new and existing customers. MongoDB's Atlas cloud database service accelerated to 30% year-over-year growth, a key driver, while the customer base expanded to 62,500, adding 2,600 new customers in the quarter.
The results triggered a wave of analyst upgrades. Cantor Fitzgerald raised its price target to $454 from $406, citing underappreciated AI demand, with Thomas Blakey noting, "The AI tailwind... continues to not be fully priced into shares." Other firms like Citizens JMP, Barclays, and Piper Sandler also lifted targets, with Piper Sandler setting a $490 target and highlighting MongoDB's momentum in AI infrastructure. However, some analysts urged caution, with Morningstar emphasizing scalability concerns and Scotiabank maintaining a Sector Perform rating.
Billings surged 34.4% to $687.3 million, and free cash flow margin improved to 22.3%. MongoDB's stock is up 41% in 2025, outperforming the S&P 500's 16% gain, fueled by investor confidence in its ability to capture AI-related demand while defending its database market share.
