MongoDB stock soared Wednesday after the database software company posted what one analyst called "one of its strongest quarters ever." The rally comes as MongoDB stock had been struggling in 2025, with investors debating the impact of generative AI on the enterprise software industry.
New York-based MongoDB said that it earned an adjusted $1 per share for the July-ended quarter, up 42.5% from a year earlier. That beat the 67 cents per share that analysts polled by FactSet were forecasting. Sales increased 24% to $591 million, easily ahead of analyst estimates of $554 million.
Meanwhile, the company touted momentum for its subscription database software. Subscription-based revenue increased 23% to $572 million, compared to analyst estimates of $532 million.
"Many of our recently added customers are building AI applications, underscoring how our value proposition is resonating in the AI era and why MongoDB is emerging as a key component of the AI infrastructure stack," MongoDB Chief Executive Dev Ittycheria said in a news release.
MongoDB lists more than 59,000 customers for its database software, which competes against Oracle and offerings from cloud giants like Amazon and Microsoft. MongoDB's products include Atlas, a subscription software offering designed to work across cloud platforms.
MongoDB "posted one of its strongest quarters ever, with 29% Atlas growth that was 4% to 5% ahead (of estimates) and a roughly 7% total revenue beat," Stifel analyst Brad Reback wrote to clients late Tuesday. "The Atlas growth was particularly impressive, as MongoDB benefited from healthy consumption growth across its installed base, strong new customer adds of 2,800 and emerging AI workload gains."
Reback rates MongoDB stock a buy.
MongoDB Stock Reaches six-Month High
On the stock market today, MongoDB stock rallied 38% to close at 295.70. That's the highest point for MongoDB stock since Feb. 19. Shares overtook MongoDB's 200-day moving average for the first time this month.
MongoDB gave a strong outlook for the current quarter as well. The firm guided for sales of $589.5 million, based on the midpoint of its given range. Analysts were previously projecting MongoDB's sales would reach $582 million for its October-ending quarter.
Optimism about the company's ability to harness AI excitement for growth powered a more than 200% rally for MongoDB stock from late November 2022 to February 2024. But shares have struggled since then. Before its jump early Wednesday, MongoDB stock had fallen 8% year to date and was 13% lower compared to 12 months ago. Software stocks in general have struggled this year amid concerns AI algorithms could eventually challenge many software business models.
"Expectations for MongoDB were low, and many investors still had questions about MongoDB in the new Gen AI world," Barclays analyst Raimo Lenschow wrote to clients late Tuesday. "However, these strong results will likely get investors to revisit the name."
Coming into the report, MongoDB stock had an IBD Composite Rating of 65 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
