MongoDB 2026 Q1 Earnings Strong Start as Net Loss Narrows 53%
Daily EarningsWednesday, Jun 4, 2025 9:08 pm ET
35min readMongoDB reported a robust start for fiscal 2026 with Q1 revenue rising by 22% year-over-year to $549.01 million, surpassing expectations. The company's revenue saw significant growth at 26%, contributing to 72% of the total revenue, indicating strong adoption. MongoDB's guidance for the second quarter also showed confidence, with revenue projections ranging from $548.0 million to $553.0 million and non-GAAP operational income expected between $55.0 million and $59.0 million. The company further enhanced its share buyback program by authorizing an additional $800 million.
Revenue
MongoDB's Q1 revenue grew by 22% year-over-year, reaching $549.01 million. Subscription revenue was $531.5 million, reflecting a 22% increase, while services revenue rose by 28% to $17.5 million. This performance underscores MongoDB's strength in cloud database services, with Atlas revenue growing by 26% and comprising 72% of the total revenue.
Earnings/Net Income
MongoDB reported a net loss of $37.63 million in Q1 2026, a significant improvement from the $80.59 million loss in the previous year. EPS losses narrowed to $0.46 from $1.10, showing positive progress in financial management.
Post-Earnings Price Action Review
The strategy of acquiring shares following a revenue drop Q/Q and holding for 30 days led to considerable losses, with a return of -38.50% compared to a benchmark return of 38.41%. The strategy exhibited poor risk-adjusted returns, indicated by a Sharpe ratio of -0.24, and faced a maximum drawdown of -67.65%, highlighting its high-risk nature and substantial potential for loss.
CEO Commentary
MongoDB CEO Dev Ittycheria expressed optimism about the company's strong start to fiscal 2026, emphasizing a 26% growth in MongoDB Atlas revenue and significant margin achievements. The addition of 2,600 new customers marked the highest net increase in six years. Ittycheria stressed MongoDB's growing preference among enterprises and startups for modernizing and developing applications, highlighting the company's capacity to drive profitable growth with its modern, cloud-native architecture.
Guidance
For Q2 fiscal 2026, MongoDB projects revenue between $548.0 million and $553.0 million and non-GAAP income from operations ranging from $55.0 million to $59.0 million. The full-year revenue guidance is set between $2.250 billion and $2.290 billion, with non-GAAP income from operations anticipated between $267.0 million and $287.0 million. Non-GAAP EPS for Q2 is projected to be between $0.62 and $0.66, and for the full year, it is expected to range from $2.94 to $3.12.
Additional News
MongoDB has announced a significant expansion of its share repurchase program, with authorization to buy back up to an additional $800 million in common stock, bringing the total authorization to $1 billion. This move underlines the company's confidence in its long-term growth and commitment to shareholder returns. Additionally, MongoDB recently appointed Mike Berry as the new Chief Financial Officer, bringing over 30 years of experience in technology and software to drive profitable growth. The company also launched the MongoDB Model Context Protocol (MCP) Server in public preview, connecting MongoDB deployments to AI-supported clients, thus enhancing developer interaction with data.
Revenue
MongoDB's Q1 revenue grew by 22% year-over-year, reaching $549.01 million. Subscription revenue was $531.5 million, reflecting a 22% increase, while services revenue rose by 28% to $17.5 million. This performance underscores MongoDB's strength in cloud database services, with Atlas revenue growing by 26% and comprising 72% of the total revenue.
Earnings/Net Income
MongoDB reported a net loss of $37.63 million in Q1 2026, a significant improvement from the $80.59 million loss in the previous year. EPS losses narrowed to $0.46 from $1.10, showing positive progress in financial management.
Post-Earnings Price Action Review
The strategy of acquiring shares following a revenue drop Q/Q and holding for 30 days led to considerable losses, with a return of -38.50% compared to a benchmark return of 38.41%. The strategy exhibited poor risk-adjusted returns, indicated by a Sharpe ratio of -0.24, and faced a maximum drawdown of -67.65%, highlighting its high-risk nature and substantial potential for loss.
CEO Commentary
MongoDB CEO Dev Ittycheria expressed optimism about the company's strong start to fiscal 2026, emphasizing a 26% growth in MongoDB Atlas revenue and significant margin achievements. The addition of 2,600 new customers marked the highest net increase in six years. Ittycheria stressed MongoDB's growing preference among enterprises and startups for modernizing and developing applications, highlighting the company's capacity to drive profitable growth with its modern, cloud-native architecture.
Guidance
For Q2 fiscal 2026, MongoDB projects revenue between $548.0 million and $553.0 million and non-GAAP income from operations ranging from $55.0 million to $59.0 million. The full-year revenue guidance is set between $2.250 billion and $2.290 billion, with non-GAAP income from operations anticipated between $267.0 million and $287.0 million. Non-GAAP EPS for Q2 is projected to be between $0.62 and $0.66, and for the full year, it is expected to range from $2.94 to $3.12.
Additional News
MongoDB has announced a significant expansion of its share repurchase program, with authorization to buy back up to an additional $800 million in common stock, bringing the total authorization to $1 billion. This move underlines the company's confidence in its long-term growth and commitment to shareholder returns. Additionally, MongoDB recently appointed Mike Berry as the new Chief Financial Officer, bringing over 30 years of experience in technology and software to drive profitable growth. The company also launched the MongoDB Model Context Protocol (MCP) Server in public preview, connecting MongoDB deployments to AI-supported clients, thus enhancing developer interaction with data.
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