From CNBC: 2025-03-06 09:47:48

Shares of MongoDB plummeted over 20% after the company shared weak guidance for fiscal year 2026, with adjusted earnings expected to be between $2.44 to $2.62 per share and revenue projected at $2.24 billion to $2.28 billion.

The slowdown in growth is attributed to weaker performance in the company’s Atlas cloud-based database service, with the projected revenue growth indicating a 12.7% increase, the slowest since its 2017 IPO.

Despite the challenges, MongoDB plans to boost hiring and pursue deals with larger firms to drive growth. The company’s finance chief noted slower-than-expected growth in new applications leveraging the Atlas cloud-based database service.

For the fiscal first quarter, MongoDB forecasts adjusted earnings per share of 63 cents to 67 cents on revenue of $524 million to $529 million, slightly exceeding analyst expectations.

Wells Fargo analyst Andrew Nowinski downgraded MongoDB shares to equal weight due to the weak outlook, anticipating limited room for significant outperformance in FY26.

In the fourth quarter, MongoDB reported earnings of $1.28 per share and $548 million in revenue, surpassing analyst forecasts. The company added 1,900 customers in the quarter, bringing the total to 54,500.

The stronger-than-expected fourth-quarter performance was overshadowed by the disappointing guidance for fiscal year 2026, leading to a significant drop in MongoDB’s stock price.



Read more at CNBC:: MongoDB shares crater 20% as weak outlook overshadows strong results