MongoDB (NASDAQ:MDB) showcased its growing role in the modern data stack at Investor Day, unveiling product updates and artificial intelligence integrations to fuel growth.
With Atlas driving most revenue and new tools like AMP speeding legacy migrations, MongoDB is targeting bigger enterprise AI workloads.
Goldman Sachs analyst Kash Rangan maintained a Buy rating on MongoDB with a price forecast of $370.
Also Read: MongoDB Gains Momentum As AI Use And Cloud Platform Growth Accelerate: Analyst
Rangan emphasized that MongoDB is positioned to become a core player in the modern data stack after attending MongoDB.local and Investor Day. The analyst argued that the company's strong innovation engine, product updates, and go-to-market enhancements provide a path to over $6 billion in long-term revenue, despite shares falling 3.7% as investors weighed management's 3–5 year framework calling for 20%+ Atlas growth, margin expansion, and stronger free cash flow conversion.
The analyst, who highlighted MongoDB's central role in enterprise AI adoption, explained that databases have become the critical "memory and state" layer for AI and Agentic AI applications, enabling enterprises to scale workloads across multiple environments. He cited McKesson's adoption of MongoDB to replace a failed Postgres system, which allowed the company to scale 300 times overnight without disruption—underscoring MongoDB's technical edge.
He pointed to new product announcements as growth catalysts. MongoDB 8.2 delivers performance gains of up to three times on time-series bulk inserts, while expanded Queryable Encryption now supports advanced queries on encrypted data, boosting adoption in regulated industries, Rangan noted.
Integrating Voyage AI's embeddings and expanding vector search across Atlas and Enterprise editions positions MongoDB as a native AI data platform, as per the analyst.
Meanwhile, the new Application Modernization Platform (AMP) accelerates migration from legacy systems like Oracle (NYSE:ORCL) by up to 90%, tackling one of the largest opportunities in the market, he noted.
Rangan underscored that Atlas now drives 77% of revenue, with more than 20% growth since inception. Self-serve customer acquisition remains an efficient channel, sourcing 25% of customers with $1 million+ Annual Recurring Revenue (ARR), while enterprise wins are expanding with larger $500K+ accounts, he said. Rangan also noted that 30% of Atlas ARR already comes from AI workloads, suggesting upside to management's 20%+ growth target.
He expects MongoDB to steadily overachieve mid-term targets as it captures enterprise AI workloads, scales modernization projects, and improves operating efficiency.
With a significant $190 billion Total Addressable Market (TAM) projected by Gartner, high switching costs, and rising developer adoption, the analyst views MongoDB as one of the most strategic assets in enterprise software, capable of sustaining durable growth and long-term profitability.
Rangan projected fiscal 2026 revenue of $2.36 billion and EPS of $3.73.
Price Action: MDB stock is down 0.16% at $314.89 at last check on Thursday.
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