MongoDB (MDB) stock is sinking Tuesday even after the document database platform beat top- and bottom-line expectations for its fiscal 2025 third quarter and raised its full-year outlook.
In the three months ended October 31, MongoDB's revenue increased 22.2% year over year to $529.4 million. Its earnings per share (EPS) rose 20.8% from the year-ago period to $1.16.
"MongoDB's third-quarter results were significantly ahead of expectations on the top and bottom line, driven by better-than-expected EA performance and 26% Atlas revenue growth," said CEO Dev Ittycheria in a statement. "We continue to see success winning new business due to the superiority of MongoDB's developer data platform in addressing a wide variety of mission-critical use cases."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $498 million and earnings of 67 cents per share, according to Investor's Business Daily.
As a result of its strong performance, MongoDB raised its full-year outlook. The company now anticipates fiscal 2025 revenue in the range of $1.973 billion to $1.977 billion and earnings per share of $3.01 to $3.03. This is up from its previous forecast for revenue of $1.92 billion to $1.93 billion and EPS of $2.33 to $2.47.
For its fiscal fourth quarter, MongoDB expects to achieve revenue between $515 million and $519 million, well ahead of analysts' expectations of $509 million.
"MongoDB is in a great position to be a central pillar of the emerging artificial intelligence (AI) tech stack and benefit from the next wave of application development in the years ahead," Ittycheria said.
However, the positive sentiment around the earnings beat faded when MongoDB announced that Michael Gordon, its chief operating officer and chief financial officer, will be stepping down on January 31, 2025. Executive departures can be seen as a loss of expertise or signal uncertainty about the future of a company.
Is MongoDB stock a buy, sell or hold?
It's been a rough year on the price charts for MongoDB, down nearly 26% since the start of 2024. Yet, Wall Street remains bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for MDB stock is $376.92, representing implied upside of nearly 25% to current levels. Additionally, the consensus recommendation is Buy.
Needham is one of those with a Buy rating on the large-cap stock and the financial services firm raised its price target on MDB to $415 from $335 following the earnings beat.
"MongoDB reported solid fiscal third-quarter results, with the majority of revenue upside from better than expected multi-year upfront license contribution," says Needham analyst Mike Cikos. "We believe the company is leading the pack in addressing the next-generation database market, which MongoDB calibrates at around $85 billion today growing to $138 billion in calendar year 2026."
Related Content
-
Dow Falls 557 Points to Start NVDA Week: Stock Market TodayThe Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
-
Nvidia Earnings: Live Updates and Commentary November 2025Nvidia's earnings event is just days away and Wall Street is zeroed in on the AI bellwether's third-quarter results.
-
Dow Falls 557 Points to Start NVDA Week: Stock Market Today
The Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
-
Nvidia Earnings: Live Updates and Commentary November 2025
Nvidia's earnings event is just days away and Wall Street is zeroed in on the AI bellwether's third-quarter results.
-
Your Four-Step Guide to True Financial Freedom, From a Financial PlannerYes, you can achieve financial independence, even if it seems elusive. While it may not be an easy journey, these are the steps to get things rolling.
-
The Private Annuity Sale: A Smart Way to Reduce Your Estate TaxesIn a private annuity sale, you transfer a highly appreciated asset to an irrevocable trust in exchange for a lifetime annuity.
-
I'm a Real Estate Investing Pro: This High-Performance Investment Vehicle Can Move Your Wealth Up a GearLeave online real estate investing to the beginners. Accredited investors who want real growth need the wealth-building potential of Delaware statutory trusts.
-
These Eight Tips From a Retirement Expert Can Help to Make Your Money Last Through RetirementAre you worried you will outlive your money? Considering these eight tips could go a long way toward ensuring your retirement money lasts as long as you do.
-
I'm an Investment Adviser: This Is the Retirement Phase Nobody Talks AboutWhat you do in the five years before retirement and the first 10 afterward can establish how comfortable you'll be for the rest of your life.
-
Gen X Turns 60: It's Time to Remix Your Retirement PlaylistIf you want a worry-free retirement, you can't keep playing the same old song. You need to freshen up your financial strategies, as well as your music.
