MongoDB 2026 Q3 Earnings Strong Beat, Guidance Raised as Net Loss Narrows 79.5%

MongoDB (MDB) delivered a resounding third-quarter performance, surpassing revenue and earnings expectations while raising full-year guidance. The company reported a 19% year-over-year revenue increase and a 79.5% reduction in net losses, driven by robust Atlas growth and margin improvements.

Revenue

MongoDB’s total revenue surged 18.7% year-over-year to $628.31 million, with Subscription revenue accounting for the lion’s share at $609.07 million, complemented by services revenue of $19.24 million. The Subscription segment’s dominance reflects the company’s shift toward recurring cloud-based offerings, while services remain a smaller but stable contributor.

Earnings/Net Income

The company narrowed its net loss to $2.01 million in 2026 Q3, a 79.5% improvement from $9.78 million in 2025 Q3, while non-GAAP earnings per share rose to $1.32, far exceeding the $0.79 consensus estimate. This marks a significant turnaround in profitability, though MongoDB remains unprofitable after a decade of losses.

Post-Earnings Price Action Review

The strategy of buying MDB when earnings beat and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 69.94% return, while the benchmark returned 85.24%. The Sharpe ratio was 0.17, indicating a reasonable risk-adjusted return. However, the maximum drawdown was 0%, suggesting the strategy avoided losses but did not capitalize on them effectively.

CEO Commentary

CJ Desai, MongoDB’s new CEO, emphasized the company’s “exceptional” Q3 results, driven by 30% year-over-year Atlas growth and “meaningful margin outperformance.” With 2,600 new customers added, MongoDB positioned itself as a leader in the AI platform shift, leveraging its “unified data platform” to address mission-critical workloads.

Guidance

MongoDB raised 2026 revenue guidance to $2.434–$2.439 billion and projected Q4 revenue of $665.0–$669.9 million. Non-GAAP operating income is expected to reach $139.0–$143.0 million in Q4, with full-year non-GAAP net income per share of $4.76–$4.80. The guidance reflects confidence in Atlas-driven growth and margin expansion.

Additional News

1. Strategic AI Positioning: MongoDB highlighted its role in the AI transition, with CEO CJ Desai noting the company’s ability to integrate enterprise data with AI models. Atlas now serves 62,500 customers, up from 59,900 in the prior quarter.

2. Leadership Transition: CJ Desai replaced Dev Ittycheria as CEO, signaling a strategic pivot toward AI and cloud dominance. Desai’s prior role as President underscores continuity in MongoDB’s growth focus.

3. Market Momentum: Shares surged 15% post-earnings on strong Atlas performance and raised guidance, reflecting investor optimism about MongoDB’s AI and enterprise expansion plans.