By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
RebruitRebruitRebruit
  • Latest
  • Finance
  • Technology
  • Security
  • Guides
Reading: MongoDB Stock Takes a Hit After Dismal FY26 Forecast
Font ResizerAa
RebruitRebruit
Font ResizerAa
Search
  • Latest
  • Finance
  • Technology
  • Security
  • Guides
Follow US
  • About
  • Our Standards
  • Contact
  • Privacy Policy
  • Cookie Policy
  • Terms of use
© 2025 REBRUIT | We don’t control content on external sites. Read more about how we handle external links

Home » MongoDB Stock Takes a Hit After Dismal FY26 Forecast

Latest

MongoDB Stock Takes a Hit After Dismal FY26 Forecast

Charles Ndubuisi
Charles Ndubuisi
March 6, 2025
Share
4 Min Read
MongoDB
SHARE

On Thursday, March 6, 2025, MongoDB shares cratered over 20% in after-hours trading, erasing months of gains after the database software maker issued a fiscal 2026 (FY26) outlook that fell far short of Wall Street’s hopes. The New York-based company projected adjusted earnings per share (EPS) of $2.44 to $2.62 and revenue of $2.24 billion to $2.28 billion—well below analyst expectations of $3.34 EPS and $2.32 billion in revenue, per LSEG polls. The news sent shockwaves through the market, overshadowing a robust Q4 performance and raising questions about MongoDB’s growth engine, its Atlas cloud database service.

Contents
Weak Guidance: Atlas Slowdown to BlameQ4 Shine Dulled by Future FearsStrategic Shift: Big Bets on Big ClientsWhat’s Next for MongoDB in 2025?

Weak Guidance: Atlas Slowdown to Blame

The culprit? A deceleration in Atlas, MongoDB’s cloud-based juggernaut, which now accounts for 71% of revenue. Finance chief Srdjan Tanjga told analysts on Wednesday’s earnings call that new applications leveraging Atlas are growing slower than anticipated. The FY26 revenue forecast implies just 12.7% growth—the company’s weakest since its 2017 IPO, a stark drop from the 57% surge two years ago. Posts on X echo the unease, with traders lamenting, “Atlas was supposed to be the future—where’s the juice?”

For fiscal Q1, MongoDB offered a cautious 63 to 67 cents EPS on $524 million to $529 million in revenue, roughly in line with LSEG’s 62 cents and $526.8 million estimates. But it’s the long-term outlook that’s rattled investors. Wells Fargo’s Andrew Nowinski downgraded the stock to equal weight, slashing his price target, citing “a smaller pool of multi-year deals” that could cap upside in FY26. “Shares will likely stay range-bound,” he warned, per his analysis shared with CNBC.

Q4 Shine Dulled by Future Fears

The dour guidance buried a stellar Q4. MongoDB reported adjusted EPS of $1.28 on $548 million in revenue—crushing forecasts of 66 cents and $520 million—driven by 20% year-over-year growth. Atlas itself grew 24%, and the company flipped to a $15.8 million profit from a $55.5 million loss a year ago. CEO Dev Ittycheria touted “stable consumption growth” and the acquisition of AI startup Voyage to bolster its AI offerings, but the market fixated on FY26’s 12.7% growth projection—a far cry from the triple-digit jumps of yesteryear.

Strategic Shift: Big Bets on Big Clients

MongoDB isn’t sitting still. Tanjga revealed the company is ramping up hiring to chase larger enterprise deals, pivoting from mid-sized businesses. It’s a high-stakes move to offset Atlas’s slowdown and capitalize on what Ittycheria calls a “once-in-a-generation opportunity” in AI-driven databases. Posts on X speculate this could juice Atlas growth by mid-2026 if it lands heavyweights like Microsoft or Meta—clients CoreWeave’s IPO filing this week showed lean heavily on GPU clouds.

What’s Next for MongoDB in 2025?

MongoDB’s tumble mirrors a jittery tech sector—CrowdStrike slumped 6% on its own weak outlook the same day, and tariff fears sank Bitcoin 8%. Yet, some see a silver lining. Jefferies analysts, despite cutting their target from $420 to $286, held a ‘Buy’ rating, arguing Atlas’s 21% implied FY26 growth (adjusted for non-Atlas declines) could rebound as last year’s usage dips cycle out.

Will MongoDB’s big-client pivot pay off, or is Atlas’s slowdown a sign of deeper cracks? With MWC 2025 buzzing over Lenovo’s foldables and CoreWeave’s IPO hype, MongoDB’s next moves—and Friday’s White House Crypto Summit—could sway sentiment. For now, it’s a $207 stock (down from $265 pre-drop) searching for a floor. Stay tuned for more earnings fallout and analyst takes!

Share This Article
Facebook Whatsapp Whatsapp Bluesky Copy Link
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

Apple’s AI Search Move Could Cost Google Billions
Apple’s AI Search Move Could Cost Google Billions
Latest
AMD Beats Q1 2025 Expectations, Despite Trade Pressures Between the U.S. and China
AMD Beats Q1 2025 Expectations, Despite Trade Pressures Between the U.S. and China
Latest
M&S Cyber Attack
How Hackers Broke Into M&S and Co-op: It Wasn’t a Glitch — It Was Human Error
Security
gtaVI
Grand Theft Auto VI is officially coming on May 26, 2026
Latest
WWDC 2025: Here’s what we can expect from Apple in June
WWDC 2025: Here’s what we can expect from Apple in June
Latest

You Might Also Like

Apple and Anthropic Are Teaming Up to Build an AI-Powered Coding Platform
Latest

Apple and Anthropic Are Teaming Up to Build an AI-Powered Coding Platform

May 3, 2025
Tariffs Cost Apple Nearly $1B—Here’s How It’s Fighting Back
Latest

Tariffs Cost Apple Nearly $1B—Here’s How It’s Fighting Back

May 2, 2025
Port Houston
Latest

Major Xfinity Outage Knocks Out Internet Across Houston

May 2, 2025
XBox
Latest

Xbox is Getting more Expensive—And it’s not just them

May 2, 2025
street view of london with famous department stores
Latest

Harrods Responds to Cyber Attack as UK Retail Faces Ongoing Threats

May 2, 2025
Marks-&-Spencer-cyber-attack
Latest

M&S Cyberattack Enters New Month as Online Services Remain Offline

May 1, 2025
Apple
Latest

Apple Warns of $900M Tariff Hit as It Shifts iPhone Production to India

May 3, 2025
Amazon's Project Kuiper satellites
Latest

Project Kuiper: Amazon Deploys First Production Satellites into Orbit

April 29, 2025
Follow US
© 2025 REBRUIT | We don’t control content on external sites. Read more about how we handle external links
  • About
  • Our Standards
  • Contact
  • Privacy Policy
  • Cookie Policy
  • Terms of use
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?