MongoDB 2026 Q3 Earnings Beats Expectations with 84.6% Net Income Improvement

MongoDB (MDB) reported fiscal 2026 Q3 earnings on Dec 1, 2025, delivering revenue of $628.31 million, surpassing analyst estimates of $592 million. The company raised full-year 2026 guidance to $2.434-2.439 billion, reflecting strong confidence in its growth strategy despite sustained losses over the past decade.

Revenue

Subscription revenue accounted for the majority of the total, with $609.07 million, while services contributed $19.24 million. The performance highlights MongoDB’s focus on recurring revenue streams, though the services segment remains a smaller component of its business.

Earnings/Net Income

MongoDB narrowed losses to $0.02 per share in 2026 Q3 from a loss of $0.13 per share in 2025 Q3, an 84.6% improvement. The company’s net loss also declined by 79.5% to $-2.01 million compared to $-9.78 million in the prior year. The EPS showed a significant improvement, with a 84.6% reduction in losses, indicating positive progress.

Post-Earnings Price Action Review

The strategy of buying MDB when revenues beat and holding for 30 days has shown favorable performance based on the latest earnings report. Here’s a detailed analysis: MongoDB’s recent earnings report exceeded expectations with $628 million in revenue, surpassing estimates of $592 million. The 18.7% year-on-year growth and a 66% EPS beat underscore strong financial performance. The market responded positively, with MDB’s stock surging 15% post-earnings, reflecting investor confidence. The company raised full-year 2026 guidance to $2.434-2.439 billion, further reinforcing its growth outlook. A 25.7% three-year revenue growth rate and margin expansion trends support this optimism. However, MongoDB’s negative operating margin (-7.45%) and historical losses highlight ongoing risks. Despite these challenges, the stock’s initial 8.4% jump to $356.77 signals strong buying pressure, suggesting short-term momentum. Investors should monitor margin trends and market conditions to assess the viability of holding MDB for 30 days.

CEO Commentary

CJ Desai, MongoDB’s President and CEO, highlighted third-quarter results exceeding guidance, driven by 30% year-over-year Atlas revenue growth (75% of total Q3 revenue) and margin outperformance. He emphasized customer expansion, with 2,600 net-new customers added, and positioned MongoDB as a leader in AI-ready data platforms.

Guidance

MongoDB raised full-year 2026 guidance to $2.434–$2.439 billion (up 20% YoY) and non-GAAP net income per share of $4.76–$4.80. For Q4, the company expects revenue of $665–$670 million, non-GAAP income from operations of $139–$143 million, and non-GAAP net income per share of $1.44–$1.48.

Additional News

MongoDB announced a leadership transition with Chirantan “CJ” Desai assuming the role of CEO, succeeding Dev Ittycheria after an 11-year tenure. The stock surged 15% in after-hours trading following the Q3 earnings beat, driven by strong Atlas growth and raised guidance. Additionally, the company added 2,600 new customers in Q3, expanding its total base to 62,500, underscoring its market penetration and product appeal.