Circle March 26th on your calendar (The Oxford Club)
Key Points
MongoDB's stock fell sharply after hours despite beating both earnings and revenue estimates for the fourth quarter.
The sell-off was driven by the company's first-quarter guidance, which came in below analyst expectations for earnings per share.
For the full fiscal year 2027, MongoDB's revenue guidance was roughly in line with estimates, while its earnings outlook was slightly above.
The company reported strong growth in its Atlas platform and added thousands of new customers over the last year.
This is a classic case of the market reacting more to future expectations than to past performance.
So, here's a fun finance puzzle: what happens when a company reports quarterly results that are better than expected, but its stock price crashes anyway? Welcome to the world of MongoDB Inc. (MDB) on Monday evening.
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The database software company released its fourth-quarter numbers, and on the surface, they looked great. Earnings came in at $1.65 per share, handily beating the analyst consensus of $1.45. Revenue was $695.07 million, also topping the expected $667.15 million and showing solid growth from $548.4 million a year ago.
The CEO, CJ Desai, was understandably positive. "We delivered strong fourth quarter results driven by our continued go-to-market execution and the broad-based demand we are seeing across our product lines," he said in the report.
The details backed him up. Their Atlas platform revenue grew 29% year-over-year for the quarter. They added 2,700 new customers, bringing their total to over 65,200. For the full fiscal year 2026, total revenue hit $2.46 billion, up 23%. All good stuff.
But then investors looked ahead. That's where the trouble started.
For the current quarter (Q1), MongoDB expects adjusted earnings per share between $1.15 and $1.19. The problem? Analysts were looking for $1.21. That's a miss. Revenue guidance of $659 million to $664 million was roughly in line with the $661.94 million estimate, but the earnings shortfall was the headline.
The full-year outlook for fiscal 2027 was more mixed. The company guided for earnings between $5.75 and $5.93 per share, which is actually above the $5.63 analyst estimate. Revenue guidance of $2.86 billion to $2.9 billion was essentially spot-on with the $2.89 billion consensus.
None of that mattered in the after-hours session. The stock dropped a whopping 23.64% to $248.19. It's a stark reminder that in the stock market, past performance is no guarantee of future results—and sometimes, the future the company predicts is all that matters in the moment.
Further Reading
Put $1,000 into this stock NOW [Not NVDA] (From Stansberry Research)
End of America Update (Porter & Co)