MongoDB Stock Popping on Strong Cloud Growth and Raised Guidance

Database company MongoDB (NASDAQ: MDB) has seen its share price pop more than 23% following a robust fiscal third quarter report released on December 1. The gains reflect investor enthusiasm over accelerating cloud adoption, margin expansion, and significantly raised full-year financial guidance.

The Numbers Behind the Rally

For the quarter ending October 31, MongoDB reported revenue growth of 19% year-over-year, reaching $628.3 million. More impressively, the company swung to non-GAAP earnings of $1.32 per share, a dramatic turnaround from a loss of $1.16 per share in the same period last year.

The headline driver came from MongoDB’s fully managed cloud platform, Atlas, which continues to be the growth engine. Atlas revenue surged 30% year-over-year and now represents 75% of total company revenue—a meaningful shift toward higher-margin, recurring streams. The cloud product added 2,600 new customers during the quarter, bringing the total customer base to 62,500.

What’s Driving Atlas Momentum?

The reacceleration in Atlas adoption is multifaceted. Both self-service and enterprise clients showed renewed momentum. Enterprise deployments of AI-related workloads—including Vector Search and Voyage embeddings—gained particular traction. These tools help enterprise customers reduce latency and cut operational spending, which explains the strong uptake.

This transition to higher-margin cloud revenue had tangible profitability benefits. Non-GAAP operating margins expanded by 100 basis points to 20%, while free cash flow skyrocketed 300% year-over-year to $140 million—a clear sign of improving operational efficiency and cash generation.

Management Raises the Bar on Full-Year Outlook

Perhaps most importantly, MongoDB’s leadership raised its fiscal 2026 guidance materially. Revenue is now expected to reach $2.434 billion to $2.439 billion, up from prior guidance of $2.34 billion to $2.36 billion. Non-GAAP operating income guidance also climbed to $436.4 million to $440.4 million, versus previous guidance of $321 million to $331 million.

These upward revisions signal clear demand visibility and solid market momentum for MongoDB’s cloud services, a noteworthy achievement in an uncertain macroeconomic environment. Analyst communities, including teams at Piper Sandler, Needham, and Rosenblatt, have responded by raising their price targets on the stock.

The Takeaway

MongoDB’s popping stock reflects real operational improvement: accelerating cloud adoption, expanding margins, and growing cash generation. The shift toward AI-powered workloads on Atlas suggests the company is well-positioned to capture emerging demand trends in enterprise data management.