Mirror Review
June 5th, 2026
Summary:
- MongoDB (NASDAQ: MDB) had a strong start to fiscal year 2026, with its latest MongoDB Q1 earnings release greatly above Wall Street estimates.
- The database software business reported outstanding sales growth, a huge boost in profit expectations, an expanded share repurchase program, and a positive outlook for future quarters.
- Furthermore, investors reacted positively, driving the company’s shares up more than 14% in after-hours trade.
- MongoDB’s excellent first-quarter report highlighted strong demand for its Atlas cloud database service as well as a record growth in client acquisition, highlighting the company’s growth in the dynamic application development market.
All About MongoDB’s Q1 Earnings Report
MongoDB’s financial health showed significant improvement in the first quarter. Here’s the financial performance breakdown:
- Revenue:
Total revenue reached $549.0 million, up 22% from last year. This was well above the roughly $527.5 million analysts expected.
- Subscription Revenue came in at $531.5 million, an increase of 22% year-over-year.
- Services Revenue reached $17.5 million, an increase of 28% year-over-year.
- Revenue from MongoDB Atlas, its cloud database service, went up 26% compared to last year. It now makes up 72% of the total Q1 revenue.
- Gross Profit:
GAAP gross profit stood at $391.0 million (71% margin) , while non-GAAP gross profit was $406.5 million (74% margin).
- Operating Income/Loss:
The company reported a narrowed GAAP loss from operations of $53.6 million, compared to $98.2 million a year ago
Crucially, non-GAAP income from operations reached $87.4 million, a major increase from $32.8 million in last year’s quarter, beating analyst estimates of $56.36 million.
- Net Income/Loss:
GAAP net loss was $37.6 million, or $0.46 per share.
However, Non-GAAP net income was $86.3 million, or $1.00 per share. This was much better than the $0.66 per share that analysts expected.
This is a big change from the same time last year, when they had a non-GAAP net loss of $42.7 million, or $0.51 per share.
- Cash Flow:
MongoDB generated $109.9 million in cash from operations, leading to a free cash flow of $105.9 million.
The company ended the quarter with $2.5 billion in cash, cash equivalents, short-term investments, and restricted cash.
- More Share Buybacks:
MongoDB announced an additional $800 million authorization for its share repurchase program, increasing the total buyback authorization to $1 billion.
CEO Comments On Strong Start and Future Opportunities
Dev Ittycheria, President and CEO of MongoDB, expressed confidence in the company’s growth.
“MongoDB is off to a strong start in fiscal 2026 with 26% Atlas revenue growth, meaningful margin outperformance, and the highest total net customer additions in six years,” he said.
Ittycheria also pointed out that “Enterprises and startups are choosing MongoDB as their platform of choice for both modernizing existing and building new applications”.
Looking to the future, he talked about the “great chance for customers to use MongoDB’s modern system”, which he said works very well for “today’s cloud-based, distributed, real-time applications—and the AI applications of the future”.
Forecast For The Future
MongoDB provided an optimistic outlook for the second quarter and the full fiscal year 2026:
| Metric | Second Quarter Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance |
| Revenue | $548.0M – $553.0M | $2.250B – $2.290B |
| Non-GAAP Income from Operations | $55.0M – $59.0M | $267.0M – $287.0M |
| Non-GAAP Net Income per Share | $0.62 – $0.66 | $2.94 – $3.12 |
The company raised its expectations for full-year revenue to around $2.27 billion and its adjusted EPS forecast to about $3.03. This shows management’s positive expectations for the year ahead.
Recent Business Developments Driving Growth
Alongside its strong financial results, MongoDB highlighted recent strategic initiatives:
- The appointment of Mike Berry as Chief Financial Officer, bringing over 30 years of experience in technology and software.
- The release of new retrieval models by Voyage AI, by MongoDB (Voyage 3.5 and Voyage 3.5 Lite), to improve AI application development.
- The launch of the MongoDB Model Context Protocol (MCP) Server in public preview, facilitating easier interaction with data using natural language and AI tools.
- The company signed up 2,600 new customers this quarter. That’s the most new customers they’ve added in six years, and they now have over 57,100 in total.
Market Reacts Positively to MongoDB Q1 Fiscal 2026 Report
The enthusiastic market response to the MongoDB Q1 earnings report for Fiscal 2026, marked by a significant stock jump, indicated renewed investor confidence in MongoDB’s growth strategy.
This also reflected positively on its focus on new application development, including AI.
While the stock has ground to recover from earlier in the year, this quarter’s strong performance suggests a potential positive shift and provides a solid foundation for the future.
