By Mariapaula Gonzalez

MongoDB reported strong second-quarter earnings results Tuesday, but the document database company's stock fell in after-hours trading.

The company also raised its fiscal year 2027 guidance, citing a 29% year over year revenue increase for its multi-cloud database service, Atlas. But with Atlas growing at the same pace for three consecutive fiscal quarters, investors hoping to see whether new clients are spending on cloud apps could feel disappointed.

Mizuho Securities analyst Jordan Klein wrote late Tuesday that major hedge funds had privately expected 30.5% to 31% growth in Atlas revenue. Shares have rallied 21.3% in the past month, leaving the stock with little room for error in its report, he wrote.

Shares dropped 14% to $372.89 in after hours trading. The stock declined 4.2% to$434.21 in regular trading as tech stocks got caught up in a broader selloff.

Revenue grew 30% from the prior year to $771.8 million, topping analysts' calls for $735 million, according to FactSet. The company posted adjusted earnings of $1.90 a share for its fiscal second quarter ended July 31, beating forecasts for $1.62 a share.

"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," CEO CJ Desai said in the earnings release.

The company now expects revenue for the fiscal year ending Jan. 31 to range from $2.99 billion to $3.03 billion, and projects earnings of $6.39 a share to $6.58 a share. That's up from previous company profit forecasts of $5.95 a share to $6.14 a share, with revenue of $2.92 billion and $2.96 billion.

Even with strong margins and subscription performance, investors will likely look for what could drive MongoDB shares higher in the future.

Write to Mariapaula Gonzalez at mariapaula.gonzalez@barrons.com

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September 01, 2026 17:47 ET (21:47 GMT)