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    MDB
    Earnings call· Oct 2025(Q3 FY26)

    MongoDB, Inc. MDB

    Dec 1, 2025 Source

    Executive summary

    MongoDB Q3 FY26 — Strong Atlas Growth and Profitability Expansion

    MongoDB delivered a strong quarter, driven by accelerating Atlas growth and robust customer additions, leading to significant operating margin expansion. The company is strategically positioned as a modern data platform for the AI era, leveraging its document model and integrated AI capabilities. Management is focused on deepening customer relationships, advancing innovation, and scaling go-to-market efforts while maintaining a commitment to long-term financial targets.

    Highlights

    5

    • Total revenue of $628.3 million, up 19% year-over-year and above guidance.

    • Atlas revenue growth accelerated to 30% year-over-year, now representing 75% of total revenue.

    • Non-GAAP operating income reached $123.1 million, resulting in a 20% operating margin, outperforming expectations.

    • Total customer count exceeded 62,500, with 2,600 additions in the quarter and 8,000 year-to-date.

    • Free cash flow significantly increased to $140 million, up from $35 million in the prior year period.

    Concerns

    2

    • Gross profit margin declined to 74% from 77% in the prior year, primarily due to Atlas growing as a percentage of overall business.

    • Planned strategic investments in engineering, marketing, and sales capacity have been delayed, shifting into Q4 FY26 and FY27.

    Guidance & targets

    12
    CategoryTargetConfidence
    Revenue
    $665 million to $670 million
    high materiality
    High
    Non-GAAP income from operations
    $139 million to $143 million
    medium materiality
    High
    Non-GAAP net income per share
    $1.44 to $1.48
    high materiality
    High
    Atlas revenue growth
    approximately 27% year-over-year
    high materiality
    High
    Non-Atlas business growth
    upper single-digit percent range year-over-year
    medium materiality
    High
    Revenue
    $2.434 billion to $2.439 billion
    high materiality
    High
    Non-GAAP income from operations
    $436.4 million to $440.4 million
    high materiality
    High
    Non-GAAP net income per share
    $4.76 and to $4.80
    high materiality
    High
    Free cash flow conversion
    exceed 100%
    medium materiality
    High
    Operating margin expansion
    100 to 200 basis points of margin expansion on average
    high materiality
    Medium
    Free cash flow conversion
    80% to 100%
    high materiality
    Medium
    Non-Atlas multiyear transactions impact on revenue
    not expect... either a meaningful headwind or tailwind
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Atlas
    Outperformed expectations, with growth accelerating for the third consecutive quarter. Driven by continued strength with largest customers in the U.S. and broad-based strength in EMEA, reflecting new and existing workload growth.
    % of Total Revenue: 75%YoY Growth Q2 FY26: 29%YoY Growth Q1 FY26: 26%
    		—30%——
    Non-Atlas
    Came in ahead of expectations, reflecting success in expanding within existing customer base and desire of largest customers to build with MongoDB long term. Benefited from higher-than-expected multiyear revenue, accounting for approximately 2/3 of outperformance.
    ARR Growth YoY: 8%
    		————

    Operational metrics

    17
    Non-GAAP operating income
    $123.1 million
    Q3 FY26

    Exceeded expectations.

    Non-GAAP operating margin
    20%up from 19% in Q3 FY25
    Q3 FY26

    Benefited from revenue outperformance and lower-than-expected operating expenses.

    Gross margin
    74%down from 77% in Q3 FY25
    Q3 FY26

    Atlas gross margins are slightly below total company gross margins but continue to improve year-over-year.

    Non-GAAP net income
    $115 millionup from $98 million in Q3 FY25
    Q3 FY26
    Non-GAAP EPS
    $1.32up from $1.16 in Q3 FY25
    Q3 FY26
    Cash and investments balance
    $2.3 billion
    Q3 FY26

    Includes cash, cash equivalents, short-term investments and restricted cash.

    Share buyback amount executed
    $145 million
    Q3 FY26

    Executed under previously announced $1 billion total share repurchase authorization.

    Shares repurchased
    514,000
    Q3 FY26

    Executed under previously announced $1 billion total share repurchase authorization.

    Atlas revenue % of total
    75%up from 68% in Q3 FY25 and 74% in Q2 FY26
    Q3 FY26

    Outperformed expectations.

    Atlas revenue growth
    30%accelerated from 29% in Q2 FY26 and 26% in Q1 FY26
    Q3 FY26

    Driven by continued strength with largest customers in the U.S. and broad-based strength in EMEA, from new and existing workloads.

    Non-Atlas ARR growth
    8%year-over-year
    Q3 FY26

    Reflects underlying revenue growth without impact of changes in duration. Benefited from higher-than-expected multiyear revenue.

    Total customer count
    62,500+up from 52,600+ in Q3 FY25
    Q3 FY26

    Driven by strong performance of self-serve motion.

    Atlas customer count
    60,800+up from 51,100+ in Q3 FY25
    Q3 FY26

    Primary driver of total customer count growth.

    Customers with $100K+ ARR
    2,694up 16% year-over-year
    Q3 FY26
    Net ARR expansion rate
    120%up from 119% in Q2 FY26
    Q3 FY26

    Reflects growing strategic importance to customers and ability to win critical workloads.

    Diluted shares outstanding
    86.9 millionup from 84.2 million in Q3 FY25
    Q3 FY26

    Used for non-GAAP EPS calculation.

    Non-GAAP tax provision
    20%
    Q4 FY26 and FY26 guidance

    Assumption for non-GAAP net income per share guidance.

    Industry KPIs

    7
    MetricValueDetails
    Customer logo metrics62,500+customers
    Large customer cohorts2,694customers
    Software recurring arr8%%
    Consumption revenue growthrelatively consistent
    Sales capacity productivitystrategic investments
    Net revenue dollar retention120%%
    Ai agentic channel product adoptionMercor uses MongoDB Atlas

    Product announcements

    1
    ProductTypeDetails
    MongoDB .locallaunch

    Deals & partnerships

    1
    Voyage AIAcquisition of an AI team and technology to enhance embeddings and vector search capabilities.

    Acquisition of Voyage AI in February, bringing an 'unbelievable team' in Palo Alto and enhancing MongoDB's AI capabilities, particularly in embeddings and reranking models.

    Risks & headwinds

    3
    Gross margin compressionQ3 FY26

    74% in Q3 FY26, down from 77% in Q3 FY25

    Mitigation: Atlas gross margins continue to improve year-over-year, despite its increasing proportion of total revenue.

    Seasonal holiday variability in consumption patternsQ4 FY26

    Can be somewhat unpredictable

    Mitigation: Prudent forecasting for Q4 Atlas revenue growth guidance (approx. 27% YoY).

    Delayed strategic investmentsShifted into Q4 FY26 and FY27

    Some planned investments have taken longer to implement than expected

    Mitigation: Benefited operating margin during FY26, but will lead to continued OpEx growth in FY27 as investments are made.

    What to watch in Q4 FY26

    5

    Atlas Revenue Growth

    Q4 FY26
    Current30% YoY in Q3 FY26
    TargetAround 27% YoY in Q4 FY26

    Why it matters

    Atlas is the primary growth driver and represents 75% of total revenue; its sustained acceleration or deceleration is key to overall company performance.

    As a result, we now expect Atlas to see approximately 27% revenue growth in the fourth quarter of fiscal '26, which is higher than our previous expectations of growth in the mid-20% range. This outlook reflects our continued confidence in Atlas while taking into account the historical seasonal variability and consumption patterns during the holiday period.

    Q&A highlights

    8

    What are CJ Desai's initial priorities and long-term changes to position MongoDB as a foundational data platform for the AI era, including any quick wins?

    CJ Desai emphasized MongoDB's suitability as a foundational platform for AI workloads due to its handling of real-time operational data and context. He noted that while enterprise AI agents are still in pilot, AI-native companies are already scaling on MongoDB. Quick wins include starting with Voyage embeddings and vector database, then moving to the operational store.

    “MongoDB has all the elements needed to be the right foundational platform for AI workloads.”

    asked by Sanjit Singh · answered by Chirantan Desai

    2 min read6 chapters

    Detailed Narrative

    01

    CEO Vision and AI Opportunity

    New CEO CJ Desai emphasized MongoDB's position at an inflection point across cloud, data, and AI, aiming to make it the generational modern data platform. He highlighted the structural advantage of MongoDB's document model, integrated search, vector search, and Voyage embeddings for AI workloads, noting its industry-leading results on benchmarks like Hugging Face. The company is uniquely positioned to help define the AI wave.

    02

    Core Business Strength and Modernization

    The core business shows strong performance across self-serve and enterprise customers, driven by ongoing modernization efforts. Customers are moving mission-critical workloads to Atlas, with a global insurance provider standardizing on Atlas for policy administration and analytics, accelerating product rollouts and improving scalability. This momentum is occurring even before significant AI tailwinds.

    03

    AI Adoption and Use Cases

    While early, AI adoption is encouraging, with AI-native startups like Mercor building intelligent applications on Atlas, leveraging Voyage embeddings and Vector Search for rapid scaling and 50% month-over-month growth. Large enterprises, such as a global media company, are also re-architecting on Atlas for enhanced content recommendation, achieving 90% latency reduction and 65% operational spend reduction, driving a 35% increase in click-through rates.

    04

    Go-to-Market and Customer Expansion

    MongoDB serves over 70% of the Fortune 100, indicating significant expansion opportunity within existing accounts. The company continues to add new customers, with 2,600 added in Q3 and 8,000 year-to-date, reflecting strong self-serve motion and broad-based demand in the U.S. and EMEA. The total customer count now exceeds 62,500.

    05

    Financial Discipline and Investment Strategy

    The company demonstrated strong operating margin expansion and free cash flow performance in FY26, exceeding expectations. Management plans continued strategic investments in engineering, marketing, and direct sales capacity in Q4 FY26 and FY27 to drive future growth, while reiterating commitment to long-term margin expansion (100-200 bps) and FCF conversion (80-100%) targets.

    06

    Developer Engagement and West Coast Focus

    To counter the Postgres narrative and boost developer engagement, particularly on the West Coast, MongoDB is relaunching its ".local" event in San Francisco in January. This initiative aims to showcase MongoDB's value proposition to AI-native and digital-native companies, leveraging the CEO's network in the venture and tech communities to plant seeds for future business.

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