MongoDB named Top Pick at Needham, replaces GitLab

Investing.com -- Needham has named MongoDB as a Top Pick for 2026, elevating the database software company to its Conviction List while removing GitLab.

Analyst Mike Cikos told investors in a note on Tuesday that MongoDB has “delivered improved results throughout FY26,” pointing to “re-accelerating Atlas growth” as a key driver.

Needham reiterated its Buy rating and lifted its price target to $500 from $480.

According to Needham, MongoDB is on track to exit the fiscal year with “more than $2.0 Billion of Atlas ARR, with line of sight to over $2.5 Billion in FY27.”

Cikos said stable Atlas consumption trends are a “net-positive,” citing improved go-to-market execution and the “durability of the architectural positioning for MongoDB’s Document model in the AI era.”

The firm added that Atlas’s consumption-based pricing model “should serve as an early bird beneficiary as AI applications move to production.” Needham also highlighted the improving visibility around MongoDB’s Non-Atlas segment.

The analyst said recent disclosures give investors a “clearer lens to underwrite the remaining 25% of Subscription Revenue,” estimating that Non-Atlas ARR is already “~$500 Million following 3QFY26 results.” Management has “steered” Non-Atlas revenue toward low- to mid-single-digit growth for FY27.

On AI, Needham remains “steadfast in our view that Data is paramount” for enterprise adoption, arguing MongoDB’s flexible document model “strongly positions” the company.

The firm cited MongoDB’s acquisition of Voyage AI and new vector search capabilities as catalysts, adding that it expects “growing AI Revenue to come in FY27 and beyond.”

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