MongoDB Stock Plunges After Q4 Results, FY26 Guidance Below Estimates

MongoDB (NASDAQ: MDB) shares took a nosedive on Wednesday, March 5, following the company's fourth-quarter and full-year fiscal 2025 financial results. The stock plummeted 17.11% in after-hours trading, reaching $218.94, after the company reported earnings that fell short of analyst expectations and provided guidance for the current quarter and full year that was below estimates.

MongoDB reported fourth-quarter earnings of $1.28 per share, beating the analyst consensus estimate of $0.67 per share. However, revenue came in at $548.4 million, slightly below the expected $548.6 million. For the full year, the company reported a net loss of $129.1 million, or $1.73 per share, compared to a net loss of $176.6 million, or $2.48 per share, in the year-ago period.

The company's guidance for the current quarter and full year was also disappointing. mongodb expects first-quarter EPS between $0.63 and $0.67, versus the $0.64 estimate, and revenue in a range of $524 million to $529 million, versus the $527.12 million estimate. For the full year, the company sees EPS between $2.44 and $2.62, versus the $3.34 estimate, and revenue in a range of $2.24 billion to $2.28 billion, versus the $2.32 billion estimate.



Several factors contributed to MongoDB's stock price decline following the Q4 results and FY26 guidance. First, the company's guidance for the current quarter and full year fell short of analyst expectations, indicating potential slowdown in growth. Second, the company's revenue miss, while slight, may have contributed to investor concerns about the company's financial performance. Third, the announcement that COO and CFO Michael Gordon will step down on January 31, 2025, likely contributed to the stock's decline, as investors may be concerned about the loss of key leadership. Finally, the broader market conditions and investor sentiment may have played a role in the stock's decline, as MongoDB's stock price has been volatile in recent months.

Despite the recent stock decline, MongoDB's strategic pivot towards larger enterprises and cloud growth aligns with its long-term growth potential. The company's focus on cloud-based solutions and AI integration positions it well to capitalize on the growing demand for these technologies in the enterprise market. Additionally, MongoDB's strong customer base and impressive revenue growth indicate that the company is well-positioned to continue its growth trajectory.

However, the recent stock decline and disappointing guidance raise concerns about the company's short-term performance and the potential impact of the management change on the company's future prospects. Investors should closely monitor MongoDB's performance and the progress of the management transition to assess the company's long-term growth potential.

In conclusion, MongoDB's stock price decline following the Q4 results and FY26 guidance reflects investor concerns about the company's short-term performance and the potential impact of the management change. Despite these concerns, MongoDB's strategic focus on cloud growth and larger enterprises, along with its strong customer base and revenue growth, align with the company's long-term growth potential. Investors should closely monitor MongoDB's performance and the progress of the management transition to assess the company's long-term growth prospects.