MongoDB raises 2026 revenue guidance by $70M amid accelerating Atlas growth and increased operating margin outlook
Aug. 26, 2025 10:56 PM ET
AI-Generated Earnings Calls Insights
Earnings Call Insights: MongoDB (MDB) Q2 2026
Management View- Dev C. Ittycheria, President and CEO, shared that "we generated a revenue of $591 million, up 24% year-over-year and above the high end of our guidance. Atlas revenue grew 29% year-over-year, representing 74% of total revenue. 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." He emphasized robust Atlas performance, accelerating customer additions, and strong operating margin, stating "our results show that customers are choosing MongoDB." Ittycheria highlighted MongoDB’s role as a critical component for AI infrastructure and underlined that "many of our recently added customers are building AI applications, underscoring how our value proposition is resonating for AI and why MongoDB is emerging as a key component of the AI infrastructure stack."
- Ittycheria also described major enterprise wins, with over 70% of the Fortune 500 and several of the world’s largest banks, healthcare, and manufacturing companies as customers. He cited examples such as Deutsche Telekom and Agibank, demonstrating MongoDB’s suitability for high-volume, mission-critical workloads.
- Michael J. Berry, Chief Financial Officer, stated, "as Dev mentioned, we had a great quarter as we exceeded all of our guidance ranges and are increasing our full year guidance across the board." He reported that Atlas revenue growth accelerated to 29%, now representing 74% of total revenue. Berry explained that "revenue came in ahead of our expectations in the quarter as we continue to have success selling incremental workloads into our existing EA customer base."
- Berry noted the appointment of Jess Lubert as the new Vice President of Investor Relations.
Outlook- Berry announced, "We are raising our expectations for revenue based on our confidence in Atlas as well as a strong performance in the first half of the year, providing a higher starting point for Atlas heading into the second half." He added, "we are increasing our operating margin guidance by 150 basis points at the high end."
- For fiscal year 2026, Berry stated, "we now expect revenue to be in the range of $2.34 billion to $2.36 billion, an increase of $70 million from our prior guide." Non-GAAP net income per share is projected to be in the range of $3.64 to $3.73.
- For Q3, revenue is expected in the range of $587 million to $592 million, and non-GAAP net income per share in the range of $0.76 to $0.79.
Financial Results- Revenue for Q2 was $591 million, up 24% year-over-year, with Atlas contributing 74% of total revenue. Gross profit was $436 million, representing a 74% gross margin. Non-GAAP operating income was $87 million for a 15% margin. Net income was $87 million or $1 per share based on 87 million diluted shares outstanding.
- Operating cash flow was $72 million, and free cash flow was $70 million. The company ended the quarter with $2.3 billion in cash, cash equivalents, short-term investments, and restricted cash. During the quarter, $200 million was used to repurchase approximately 930,000 shares under the previously announced $1 billion share repurchase authorization.
- Berry reported a modest restructuring affecting less than 2% of employees, resulting in approximately $5 million in one-time charges.
Q&A- Sanjit Kumar Singh, Morgan Stanley: Asked about drivers behind Atlas acceleration and sales force operations. Ittycheria responded that the move upmarket was paying off with faster-growing workloads and that self-serve channels remained strong. "We're just doubling down on what we said previously. We are moving up markets. We're focusing our high-end sales force focus on the most sophisticated and demanding customers."
- Raimo Lenschow, Barclays: Inquired about self-serve channel acceleration. Ittycheria explained that "the team is really good at running experiments using a data-driven approach to figure out what's working, to figure out what's not working...we feel really good about what that self-serve team has been doing."
- Tyler Radke, Citi: Asked about the impact of AI use cases on Atlas. Ittycheria responded, "the growth that we delivered this quarter was not material to that growth. Growth is really driven by our core business and our core customer base."
- Jason Ader, William Blair: Requested commentary on industry developments and technology differentiation. Ittycheria discussed MongoDB’s architectural advantages and its positioning as the strategic high ground for AI.
- Aleksandr Zukin, Wolfe Research: Probed on AI use cases and platform differentiation. Ittycheria highlighted MongoDB’s JSON structure and integrated search, stating, "we integrate search and vector search. So you can do very sophisticated things...which is a very unique differentiator for us."
Sentiment Analysis- Analysts expressed a positive tone, congratulating management for performance and probing for deeper insights into growth drivers and AI traction.
- Management maintained a confident and optimistic tone during prepared remarks and Q&A, frequently referencing strong results, effective strategic execution, and market leadership. Berry affirmed, "we are raising our revenue and operating margin guidance for the full year fiscal year 2026."
- Compared to the previous quarter, both management and analysts displayed an increase in confidence and enthusiasm, especially regarding Atlas growth and margin expansion.
Quarter-over-Quarter Comparison- Revenue grew from $549 million in Q1 to $591 million in Q2, with Atlas growth accelerating from 26% to 29% year-over-year.
- Operating margin guidance increased from 12% at midpoint to 14% at the high end. Full-year revenue guidance was raised by $70 million, compared to a $10 million raise in Q1.
- Management’s tone was more assertive about durable growth and margin expansion. Analysts continued to focus on Atlas, AI opportunity, and the success of upmarket and self-serve motions, mirroring prior quarter interests but with greater optimism.
- Strategic focus remained on upmarket expansion, self-serve improvements, and AI positioning, with increased clarity on the impact of AI cohorts.
Risks and Concerns- Berry mentioned a modest restructuring, impacting less than 2% of employees and resulting in $5 million of one-time charges.
- He noted a headwind from multiyear license revenue for fiscal '26, now expected to be $40 million due to Q2 outperformance, compared to a prior expectation of approximately $50 million.
- Ittycheria acknowledged that enterprise AI adoption remains early, with much of the activity centered on employee productivity tools and packaged ISV solutions. Potential challenges include the scalability and reliability of AI systems and the need for further developer education.
Final Takeaway
MongoDB’s Q2 2026 earnings call featured accelerating Atlas growth, robust customer additions, and a raised revenue and operating margin outlook for the full year. Management emphasized strong execution in both enterprise and self-serve channels, highlighted the company’s critical role in AI infrastructure, and maintained a confident stance on future growth while noting continued investments in R&D and efficiency. Strategic clarity around upmarket expansion and AI positioning underpinned management’s outlook for durable, profitable growth.
Read the full Earnings Call Transcript |
