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Earnings call · Jul 2026 (Q2 FY27)

MongoDB Q2 FY27 earnings call MDB

Sep 1, 2026 Source

Executive summary

MongoDB Q2 FY27 — Strong Revenue Acceleration and AI Momentum

MongoDB delivered a strong Q2 FY27, marked by significant revenue acceleration and robust profitability, driven by consistent Atlas growth and a resurgence in Enterprise Advanced (EA) performance. The company is seeing strong early traction in AI workloads, particularly with Atlas Vector Search and Voyage embeddings, attracting both large enterprises and AI-native customers. Management raised full-year guidance, emphasizing continued investment in product innovation and go-to-market strategies while expanding operating margins.

Highlights

6

  • Total revenue of $772 million, up 30% year-over-year, representing the highest quarterly growth since FY24.

  • Atlas revenue grew approximately 29% year-over-year for the fifth straight quarter.

  • EA and Other revenue grew 36% year-over-year, marking a standout quarter.

  • Non-GAAP operating margin reached 24%, reflecting strong revenue performance.

  • Added a record 2,900 net new customers, bringing the total to 70,600, with Voyage customer count nearly doubling quarter-over-quarter.

  • Net ARR expansion rate increased to 122% for the quarter, up from 121% last quarter.

Concerns

3

  • Q3 Atlas growth guidance implies a deceleration to approximately 26% due to a tough comparable period and prudent forecasting for consumption business.

  • Q4 Atlas guidance is conservative, reflecting inherent unpredictability due to holiday impact and consumption dynamics.

  • Multiyear deals in the EA business are inherently hard to predict, leading to prudent guidance despite strong performance.

Guidance & targets

CategoryTargetConfidence
Total Revenue
$756M-$761M
high materiality
High
Non-GAAP Income from Operations
$152M-$156M
medium materiality
High
Non-GAAP Net Income per Share
$1.57-$1.61
medium materiality
High
Total Revenue
$2.99B-$3.03B
high materiality
High
Non-GAAP Income from Operations
$616M-$636M
medium materiality
High
Non-GAAP Net Income per Share
$6.39-$6.58
medium materiality
High
Atlas Growth
~27%
high materiality
High
EA and Other Revenue Growth
~11%
medium materiality
High
Operating Margin Expansion
~250 bps
high materiality
High
Rule of 40 Performance
44%
medium materiality
High
Free Cash Flow Conversion
upper end of 80%-100%
medium materiality
High
Atlas Growth
~26%
high materiality
High
EA and Other Revenue
approximately flat
medium materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Atlas
Fifth straight quarter of ~29% YoY growth. Main growth driver was North America and largest customers ($100K+ ARR cohort). Strong momentum in AI native cohort and AI signals (Vector Search adoption, new Voyage customers, MCP clusters). Added a record $127 million in dollar growth in the quarter.
Net ARR expansion rate: 122%Customers: 69,300Customers with $100K+ ARR leveraging 2+ features: 48%
—~29%——
EA and Other
Exceptional quarter, strongest in 3 years. Early demand for Search and Vector Search capabilities launched in Q2. Strength was broad-based across financial services, public sector, and technology. Highlights strategic importance for self-managed footprints. ARR growth was double-digit for the third consecutive quarter.
ARR growth: ~11% YoY
—36%—higher EA revenue mix in Q2

MDB operating KPIs by quarter

MDB operating KPIs stated on its earnings calls, by fiscal quarter
KPI Jan 2025 Q4 FY25 Jul 2025 Q2 FY26 Oct 2025 Q3 FY26 Jan 2026 Q4 FY26 Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Customers
54.5K+ We ended the quarter with over 54,500 customers. Source transcript
59.9K+ We delivered non-GAAP operating income of $87 million for a 15% non-GAAP operating margin, and we ended the quarter with over 59,900 customers. Source transcript
62.5K+ We ended the quarter with over 62,500 customers adding 2,600 in the quarter and 8,000 year-to-date, reflecting 65% growth in customer additions on a year-to-date basis driven by the strong performance of our self-serve motion. Source transcript
65.2K+ We ended the quarter with over 65,200 customers adding 2,700 customers in Q4, growing both year-over-year and quarter-over-quarter. Source transcript
67.7K+ We ended the quarter with over 67,700 customers, adding 2,500 customers in Q1, growing year-over-year and quarter-over-quarter. Source transcript
70.6K We ended the quarter with 70,600 customers, adding a record 2,900 net new customers in the period. Source transcript
—
Customers Direct sales
7,500+ Of our total customer count, over 7,500 are direct sales customers, which compares to over 7,000 in the year ago period. Source transcript
7,300+ Of our total customer count, over 7,300 are direct sales customers, a decline of 200 customers sequentially and flat year-over-year. Source transcript
—————
Customers Atlas
53.1K+ The growth in our total customer count is being driven primarily by Atlas, which had over 53,100 customers at the end of the quarter compared to over 46,300 in the year ago period. Source transcript
58.3K+ The growth in our total customer count is being driven primarily by Atlas, which had over 58,300 customers at the end of the quarter compared to over 49,200 in the year ago period. Source transcript
60.8K+ The growth in our total customer count is being driven primarily by Atlas which had over 60,800 customers at the end of the third quarter compared to over 51,100 in the year ago period. Source transcript
—
66.4K The growth in our total customer count is being driven primarily by Atlas, which had 66,400 customers at the end of the first quarter compared to 55,800 in the year ago period. Source transcript
69.3K Growth continues to be driven primarily by Atlas, which had 69,300 customers at the end of the second quarter compared to 58,500 in the year ago period. Source transcript
+4.4%
Customers above an annual spend threshold ARR and annualized MRR at least $100,000
2,396 We ended the quarter with 2,396 customers with at least $100,000 in ARR and annualized MRR, up from 2,052 in the year ago period. Source transcript
2,564 We ended the quarter with 2,564 customers with at least $100,000 in ARR, representing 17% growth versus the year ago period. Source transcript
2,694 We ended the quarter with 2,694 customers with at least $100,000 in ARR, representing 16% growth versus the year ago period. Source transcript
2,799 We ended the quarter with 2,799 customers with at least $100,000 in ARR and 402 customers with at least $1 million in ARR representing 17% and 26% year-over-year growth, respectively. Source transcript
2,895 We closed out Q1 with 2,895 customers with at least $100,000 in ARR, representing 16% year-over-year growth. Source transcript
<3,000 We ended the quarter with nearly 3,000 customers with at least $100,000 in ARR representing 17% year-over-year growth. Source transcript
—
Remaining performance obligation (RPO) ———
$1.47B You can see the strength in the growth of deferred revenue as well as the growth in RPO, which grew from $748 million at the end of fiscal '25 to $1.47 billion at the end of fiscal '26, a year-over-year growth of 97%. Source transcript
$1.46B Our remaining performance obligations, which we define specifically as obligations for contracts with a duration greater than 12 months stayed relatively consistent quarter-over-quarter and ended the period at $1.46 billion. Source transcript
$1.52B Our remaining performance obligations, which we define as obligations for contracts with a duration greater than 12 months ended the quarter at $1.52 billion, representing year-over-year growth of 91% with the current portion growing 73%. Source transcript
+4.1%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Remaining Performance Obligations (RPO) $1.52B Q2 FY27 end

91% YoY growth

Obligations for contracts with a duration greater than 12 months.

Current Portion of RPO not stated as absolute value Q2 FY27 end

73% growth

Portion of RPO expected to be recognized in the next 12 months.

Product announcements

ProductTypeDetails
Automated Voyage Embeddingslaunch
Voyage Cohort 4launch
Reranking APIupdate
Search and Vector Searchlaunch
Fully Managed MCP Serverlaunch

Deals & partnerships

Anthropic Technology partnership and integration with Claude

Paul Smith, Chief Commercial Officer at Anthropic, described their technology partnership and recent integration with Claude, noting that the best AI applications need a strong database, leading them to point developers building on Claude to MongoDB Voyage for embeddings. This demand led MongoDB to build a new managed MCP server for seamless integration.

Risks & headwinds

Prudent guidance for out-quarters, especially Q4 Q4 FY27

Implied Q4 Atlas deceleration

Mitigation:Guidance philosophy remains consistent; need to see how things play out in September/October, holidays impact consumption. Multiyear deals are inherently hard to predict.

Tough comparable for Atlas growth Q3 FY27

Q3 Atlas growth expected ~26% (vs ~29% in Q2)

Mitigation:Acknowledged as the toughest compare of the year for Atlas; guidance framework accounts for this.

What to watch in Q3 FY27

Atlas Revenue Growth

Q3 FY27
Current ~29% YoY
Target Above ~26% YoY

Why it matters

Atlas is the primary growth driver, and outperformance against conservative guidance would signal continued strong demand and execution.

Based on this continued momentum, we expect Atlas growth of approximately 26% in Q3 and we are raising our full year growth expectation to approximately 27%, an increase of 300 basis points from the midpoint of our prior guidance.

Q&A highlights

What factors are driving confidence in Atlas guidance, especially given its consistent growth?

Mike Berry highlighted Atlas's consistent 29% YoY growth for five quarters, a 300 basis point increase in full-year guidance, record $127 million in net new Atlas dollars, and an increased net ARR expansion rate of 122%. He expects continued strong growth from large enterprise customers in North America and early benefits from AI workloads.

“As we talked about, we feel very good about the Atlas business. And what we look at is this was the fifth straight quarter of approximately 29% year-over-year growth, very consistent. We've increased the full year guidance by 300 basis points from the previous guide. And that is also buttressed by a record net new $127 million net new Atlas dollars as well as the increase in the net ARR expansion rate and now Atlas is almost a $2.3 billion run rate.”

asked by Raimo Lenschow · answered by Michael Berry

2 min read 5 chapters

Detailed narrative

AI Workload Momentum and Product Innovation

MongoDB is experiencing strong early traction with AI workloads, driven by the adoption of Atlas Vector Search and Voyage embeddings. The company launched Automated Voyage Embeddings for Atlas, Voyage Cohort 4, and an upgraded reranking API in August, enhancing AI retrieval accuracy. Enterprises are leveraging the platform for AI-driven discovery, customer-facing chatbots, and fraud detection, while AI-native companies are choosing MongoDB for scalable data layers, with Voyage customer count nearly doubling quarter-over-quarter.

Enterprise Advanced (EA) Resurgence

EA and Other revenue saw exceptional 36% year-over-year growth, its strongest in three years. This performance is attributed to the growing strategic importance of EA for large customers and the recent launch of Search and Vector Search capabilities for self-managed environments in Q2. This enables regulated industries to build AI applications within their own governed infrastructure, and management emphasized that EA growth is not at the expense of Atlas, but rather complementary.

Atlas Consistency and Predictability

Atlas maintained approximately 29% year-over-year growth for the fifth consecutive quarter, adding a record $127 million in dollar growth. The platform's increasing size and predictability, coupled with a strong net ARR expansion rate of 122% and multiproduct penetration, underpin confidence in its continued growth. The strength is primarily driven by North America and large enterprise customers, particularly those in the $100,000+ ARR cohort.

Customer Acquisition and Expansion

MongoDB added a record 2,900 net new customers, bringing the total to 70,600. Voyage customer count nearly doubled quarter-over-quarter, with a significant portion being AI-native companies new to MongoDB. This indicates a strong funnel for future Atlas adoption, as many Voyage referrals come from coding agents like Claude and Codex, driving AI workloads. Nearly 3,000 customers now have at least $100,000 in ARR, growing 17% year-over-year.

Financial Performance and Outlook

MongoDB delivered GAAP EPS profitability for the third consecutive quarter and raised its full-year FY27 guidance for total revenue, Atlas growth, and EA growth. The company expects to expand operating margin by approximately 250 basis points while continuing strategic investments in product innovation and go-to-market. Management is targeting a Rule of 44 performance at the high end of its FY27 outlook and expects full-year free cash flow conversion to be at the upper end of its 80-100% long-term target range.

AI-generated summary of the company's earnings call. Not investment advice.