MongoDB (MDB) stock slid late Wednesday despite the database software company reporting fiscal fourth quarter earnings and sales that beat expectations. The company's outlook for the current fiscal year came in short of Wall Street estimates.
MongoDB said that it earned an adjusted $1.28 per share on sales of $548.4 million for the January-ended quarter. Analysts polled by FactSet projected the New York-based company would post adjusted earnings of 66 cents per share on sales of $521 million. Sales increased 20% year-over-year while non-GAAP earnings increased 48%.
↑ X NOW PLAYING Palantir Is Shaking Up The Defense Sector. What Comes Next As The AI Revolution Heads To The Front Lines."MongoDB delivered a strong end to fiscal 2025 with 24% Atlas revenue growth and significant margin expansion," Chief Executive Dev Ittycheria said in a news release. "Atlas consumption in the quarter was better than expected and we continue to see good performance in new workload wins due to the flexibility, scalability and performance of the MongoDB platform."
For the current quarter, MongoDB guided for sales of $526.5 million at the midpoint of its range. Analysts were projecting $527.3 million for MongoDB's sales in the April-ending quarter, according to FactSet. Meanwhile, MongoDB's projection for adjusted earnings near 65 cents per share for the April quarter beat expectations of 62 cents per share.
However, the company gave full-year guidance below expectations. For its current fiscal year ended next January, MongoDB said it expects adjusted earnings between $2.44 per share and $2.62 per share from sales between $2.24 billion and $2.28 billion.
Wall Street was looking for adjusted earnings of $3.38 per share for the January 2026-ending fiscal year with sales of $2.33 billion, according to FactSet.
On the stock market today, MongoDB stock is down more than 16% at 219.98 in recent after-hours action.
Prior to earnings, MongoDB gained 3.8% in regular Wednesday trading. Shares have gained 13.5% year-to-date, not including Wednesday's late movement.
MongoDB says it has more than 50,000 users for its database software. Its offering including the cloud-based Atlas. Optimism about the company's ability to harness AI demand for growth powered a more than 200% rally for MongoDB stock from late November 2022 to February 2024. But shares have struggled since then, including a 35% slide over the past 12 months.
MongoDB stock picked up momentum late last year but sold-off following its fiscal third-quarter results in early December.
Coming into the report, MongoDB stock had an IBD Composite Rating of 41 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
And the stock's IBD Relative Strength Rating was a meager 22 out of 99. The RS Rating means that MongoDB stock has outperformed just 22% of all stocks in IBD's database over the past year.
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