TenQ

The MongoDB story

MongoDB provides a database developers use to build applications, mostly through Atlas, with the question of whether cloud adoption and AI features can produce durable operating profits.

Written from MongoDB's own filings with the SEC, and rewritten when it publishes a new earnings release. Updated 2026-09-30.

  • $334.68share price, last close
  • $27.0Bmarket value
  • 16/36TenQ Score checks passed
  • 44.4%growth a year the price assumes

The story in brief

  • Growth spans both offerings. In the quarter to July 2026, revenue rose 30% to $771.8 million, with Atlas growing approximately 29% and Enterprise Advanced and other revenue growing approximately 36%.
  • Operating profit emerges. In the quarter to July 2026, MongoDB generated GAAP operating income of $28.4 million and free cash flow of $137.6 million, which nearly doubled from a year earlier.
  • Contract commitments expand. At July 2026, remaining performance obligations reached $1,519.2 million, up 91% from a year earlier, while current remaining performance obligations increased 73% to $797.3 million.

What drives the business

  • MongoDB's transition toward its managed cloud database, Atlas, has reshaped the business, with Atlas contributing 73% of revenue in the fiscal year ended January 2026 compared with 66% in the fiscal year ended January 2024.
  • Atlas operates across Amazon Web Services, Google Cloud Platform and Microsoft Azure, while Enterprise Advanced serves customers managing their own deployments and contributed 20% of revenue in the fiscal year ended January 2026.
  • Growth comes from converting free users into paying customers and expanding existing customers' usage as applications need more capacity or organizations move additional applications onto MongoDB.
  • Net annualized recurring revenue expansion was 121% in the quarter to January 2026, reflecting spending growth within the existing customer base.
  • The February 2025 acquisition of Voyage AI added retrieval technology, and the quarter to July 2026 brought general availability of Search and Vector Search in Enterprise Advanced, extending capabilities beyond Atlas.

What the price assumes

At $334.68, the reverse DCF implies free cash flow after stock pay grows 44.4% a year for ten years, using a 10.2% discount rate.

The historical comparison is 41.3% annual revenue growth over the last 7 years, rather than a directly comparable record of free cash flow after stock pay.

The TenQ check sets a 22.6% growth bar by slowing that historical record halfway toward 4%, below the growth implied by the price.

Value MDB on your own assumptions

What could change the story

  • Stock compensation of $564 million over the last twelve months was substantial beside free cash flow of $659 million, making the distinction between reported cash generation and cash flow after stock pay important.
  • Despite GAAP operating profit in the quarter to July 2026, the operating margin over the last twelve months was -0.5%, and return on equity was 2.0%, both failing TenQ quality checks.
  • MongoDB cautions that demand for AI infrastructure may develop differently than expected or favor competing architectures, which could limit adoption of its expanded retrieval capabilities.
  • On September 28, 2026, CJ Desai stepped down to pursue a senior role at Meta Platforms, and Dev Ittycheria became interim CEO while the board searches for a permanent successor, adding a leadership transition to the execution demands.

What to watch next

  • MongoDB reaffirmed its guidance on September 28, 2026, calling for revenue of $756 million to $761 million in the third quarter of fiscal 2027 and $2.99 billion to $3.03 billion for the full fiscal year.
  • The next release will show whether GAAP operating profitability persists despite guidance for an operating loss, and whether free cash flow growth is accompanied by restraint in stock compensation.
  • Atlas growth and the conversion of remaining performance obligations into revenue will help show whether expanding customer commitments support sustained application usage.

Sources

Back to the MDB report