MongoDB stock tumbles despite earnings beat on profit-taking

Investing.com -- MongoDB (NASDAQ: MDB) reported second quarter fiscal 2027 results that exceeded analyst expectations, with adjusted earnings per share of $1.90 beating the consensus estimate of $1.61, while revenue of $771.8 million surpassed the $735.16 million estimate. Revenue increased 30% YoY, marking the highest growth rate in several years.

The database platform company raised its full year fiscal 2027 revenue guidance to a range of $2.99 billion to $3.03 billion, with a midpoint of $3.01 billion above the analyst consensus of $2.96 billion. The company also lifted its full year adjusted EPS guidance to $6.39-$6.58, with a midpoint of $6.485 exceeding the consensus of $6.13. Management attributed the guidance raise mainly to strength in its Atlas cloud database product.

Despite the strong results and raised outlook, MongoDB shares fell 13% in after-hours trading Tuesday, as investors took profits following a 28% rally over the past month and a 7% gain for the week.

"We delivered strong second quarter results, highlighted by 30% year-over-year revenue growth—the highest level of growth in several years—and continued strong profitability," said CJ Desai, President and Chief Executive Officer of MongoDB.

Atlas revenue grew approximately 29% YoY in the second quarter, while Enterprise Advanced and other revenue increased approximately 36% YoY. The company reported adjusted operating income of $185.9 million, representing a 24% operating margin, up from 15% a year ago. Free cash flow nearly doubled YoY to $137.6 million.

For the third quarter fiscal 2027, MongoDB expects revenue of $756 million to $761 million and adjusted EPS of $1.57 to $1.61.

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