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MongoDB, Inc. (MDB)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 revenue was $549.0 million (+22% YoY), with non-GAAP EPS of $1.00; both exceeded Wall Street consensus (Revenue $527.5 million*, EPS $0.66*) and the company’s guidance high end .
  • Atlas revenue grew 26% YoY and comprised 72% of total revenue, while non-GAAP operating income reached $87.4 million for a 16% margin, reflecting efficiency and timing of expenses .
  • FY26 guidance was raised: revenue to $2.25–$2.29B, non-GAAP operating income to $267–$287M, and non-GAAP EPS to $2.94–$3.12; management also increased the non-GAAP operating margin midpoint to 12% from 10% .
  • Capital allocation catalyst: share repurchase authorization increased by $800M (total now $1B), alongside AI product momentum (Voyage 3.5 embeddings, MCP Server) and new CFO appointment .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and bottom-line beats with disciplined execution: “we got off to a strong start in fiscal 2026… above the high end of our guidance” (Dev Ittycheria) ; Revenue $549.0M; non-GAAP EPS $1.00 .
  • Margin outperformance: non-GAAP operating margin reached 16% (vs 7% YoY), aided by revenue outperformance and slower-than-planned headcount additions (Mike Berry) .
  • Customer momentum: +2,600 net adds, 57,100+ total customers—the highest net additions in six years; retention remained strong .

What Went Wrong

  • Mix pressure on margins: GAAP gross margin fell to 71% (non-GAAP to 74%), driven by Atlas mix and Voyage acquisition impacts (CFO commentary) .
  • Consumption variability: April Atlas softness amid macro volatility; Q2 operating margin guided lower sequentially as non-Atlas is expected to decline high single digits YoY (CFO) .
  • GAAP loss persisted: net loss was $(37.6)M (basic/diluted $(0.46) per share); SBC totaled $132.4M in the quarter .

Financial Results

MetricQ3 2025Q4 2025Q1 2026
Revenue ($USD Millions)$529.4 $548.4 $549.0
Non-GAAP EPS (Diluted) ($)$1.16 $1.28 $1.00
GAAP EPS (Diluted) ($)$(0.13) $0.19 $(0.46)
Gross Margin (GAAP, %)74% 73% 71%
Operating Margin (Non-GAAP, %)19% 21% 16%
Segment MixQ3 2025Q4 2025Q1 2026
Subscription Revenue ($M)$512.2 $531.0 $531.5
Services Revenue ($M)$17.2 $17.4 $17.6
Atlas (% of Total Revenue)68% 71% 72%
KPIsQ3 2025Q4 2025Q1 2026
Total Customers52,600+ 54,500+ 57,100+
Atlas Customers51,100+ 53,100+ 55,800+
Customers ≥$100K ARR2,314 2,396 2,506
Net ARR Expansion Rate (%)——~119% (CFO)
Free Cash Flow ($M)$34.6 $22.9 $105.9
Cash + ST Investments + Restricted ($B)$2.3 $2.3 $2.5
Actual vs Consensus (S&P Global)Q3 2025Q4 2025Q1 2026
Revenue Actual ($M)$529.4 $548.4 $549.0
Revenue Consensus ($M)$495.7*$519.8*$527.5*
EPS Actual (Primary/Non-GAAP) ($)$1.16 $1.28 $1.00
EPS Consensus ($)$0.687*$0.670*$0.658*

Values marked with an asterisk were retrieved from S&P Global (Capital IQ).

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q2 FY26N/A$548–$553 New
Non-GAAP Income from Operations ($M)Q2 FY26N/A$55–$59 New
Non-GAAP EPS ($)Q2 FY26N/A$0.62–$0.66 New
Revenue ($B)FY26$2.240–$2.280 $2.250–$2.290 Raised
Non-GAAP Income from Operations ($M)FY26$210–$230 $267–$287 Raised
Non-GAAP EPS ($)FY26$2.44–$2.62 $2.94–$3.12 Raised
Non-GAAP Operating Margin (Midpoint, %)FY2610% (initial) 12% Raised
Non-Atlas Subscription Rev TrendFY26Down high-single digits YoY Down high-single digits YoY (unchanged) Maintained
Share Repurchase Authorization ($M)Ongoing$200 $1,000 total (additional $800) Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25, Q4 FY25)Current Period (Q1 FY26)Trend
AI/Embeddings/Vector SearchGA of MongoDB 8.0; partnerships; MAAP expanded Voyage 3.5 embeddings; MCP Server preview; unified operational data + search + retrieval (Dev) Accelerating AI productization and integration
Atlas ConsumptionStable; better-than-expected Q4 consumption Feb/Mar strong, April soft, healthy rebound in May; cautious macro (CFO) Improving post-April; monitoring macro
Non-Atlas EA BusinessQ3 beat driven by EA; Q4 noted timing effects Q1 ahead of expectations; expect Q2 high-single-digit YoY decline; ~$50M multi-year license headwind in H2 (CFO) Near-term pressure; timing-driven
Go-to-Market (Move Upmarket)Strength in large deals; CRO organization evolution Reallocating resources to enterprise; higher productivity; self-serve acquiring mid-market efficiently (CEO) Upmarket focus gaining traction
Margin DisciplineQ3/Q4 non-GAAP op margin expansion Q1 non-GAAP op margin 16%; FY26 margin midpoint +200bps; Q2 margin to be lower (investment + mix) Structural improvement with near-term mix headwind
Capital AllocationQ4: $200M buyback announced Total buyback authorization increased to $1B; intend to begin in Q2 (CFO) More aggressive returns
Regulatory/Public Sector—FedRAMP High & IL5 pursuit for Atlas for Government Expanding GovCloud eligibility

Management Commentary

  • “We generated revenue of $549 million, a 22% year-over-year increase and above the high end of our guidance… Atlas revenue grew 26% year-over-year… non-GAAP operating income of $87 million for a 16% margin” (Dev Ittycheria) .
  • “Gross margin… down from 75% in the year-ago period… primarily driven by Atlas growing as a percent of the overall business and the impact of the Voyage acquisition” (Mike Berry) .
  • “MongoDB now brings together… real-time data, powerful search, and smart retrieval” with Voyage 3.5 enabling “reduced storage costs by more than 80%” (Dev Ittycheria) .
  • “We are raising our expectations for operating margin to 12% at the midpoint, up from 10%… and announcing a significant expansion to our share repurchase program” (Mike Berry) .

Q&A Highlights

  • Atlas consumption cadence: strong in Feb/Mar, soft in April, rebound in May; cautious outlook given macro; Q2 margin lower on mix and targeted investments (CFO) .
  • Competitive posture vs Postgres/Snowflake/Databricks: MongoDB’s native document/JSON architecture and integrated search/vector/embeddings cited as production-grade advantage for complex AI workloads (CEO) .
  • Strategic focus: moving upmarket and modernizing legacy apps; self-serve channel driving mid-market logos efficiently; certifications and multi-language docs to expand developer education (CEO) .
  • Non-Atlas dynamics: FY26 non-Atlas down high single digits YoY; ~$50M headwind from multi-year license revenue, mostly in H2; potential upside subject to renewal timing (CFO) .
  • Capital returns/M&A: $1B repurchase authorization with activity planned in Q2; M&A optionality for roadmap accelerations but organic growth emphasized (CFO) .

Estimates Context

  • Q1 FY26 beat vs consensus: Revenue $549.0M vs $527.5M*, EPS $1.00 vs $0.658*; both above the company’s raised expectations .
  • Prior quarters also beat: Q4 FY25 revenue $548.4M vs $519.8M*; EPS $1.28 vs $0.670*; Q3 FY25 revenue $529.4M vs $495.7M*; EPS $1.16 vs $0.687* .
  • FY26 Street revenue estimate stands at ~$2.359B*, below management’s $2.25–$2.29B range midpoint; EPS consensus ~$3.73*, above non-GAAP EPS guide midpoint due to differing methodologies*.
    Values marked with an asterisk were retrieved from S&P Global (Capital IQ).

Key Takeaways for Investors

  • Q1 delivered clear beats and operational leverage: non-GAAP operating margin at 16% and strong FCF of ~$106M provide evidence of improving scalability .
  • FY26 guidance was broadly raised; margin midpoint increased by 200bps to 12%, signaling structural profitability improvements (CFO) .
  • Atlas growth reaccelerated to 26% YoY with 72% mix; watch consumption stability given April softness and macro sensitivity (CFO) .
  • Non-Atlas expected to decline high single digits YoY in Q2 and faces ~$50M multi-year license headwind in H2; model near-term mix drag to margins (CFO) .
  • $1B buyback authorization (up from $200M) adds a supportive capital return backdrop; repurchases targeted to begin in Q2 (CFO) .
  • AI product momentum (Voyage 3.5 embeddings, MCP Server) and app modernization initiatives strengthen medium-term growth drivers and competitive differentiation .
  • Net adds of ~2,600—the highest in six years—plus growth in ≥$100K customers to 2,506 indicate expanding enterprise footprint and self-serve funnel efficacy .