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MongoDB, Inc. (MDB)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 revenue of $591.4M, up 24% y/y, and non-GAAP EPS of $1.00 both materially beat Wall Street consensus; Atlas accelerated to 29% y/y growth and reached 74% of revenue .
  • Management raised FY26 guidance across revenue ($2.34–$2.36B), non-GAAP operating income ($321–$331M), and non-GAAP EPS ($3.64–$3.73), citing strong Atlas consumption and disciplined investment .
  • Margin execution was strong: non-GAAP operating margin 15% vs. 11% last year; free cash flow of $69.9M vs. -$4.0M a year ago, supported by better operating profit and higher cash collections .
  • Near-term watch items: non-Atlas expected to decline low-20% y/y in Q3 and operating margin to be sequentially lower due to mix and expense timing; this could temper momentum despite the FY raise .

What Went Well and What Went Wrong

What Went Well

  • Atlas growth accelerated to 29% y/y and reached 74% of revenue; management emphasized platform differentiation with native search and vector search and AI readiness: “MongoDB is emerging as a key component of the AI infrastructure stack” .
  • Customer additions robust: +2,800 sequential (≈59,900 total), with over 5,000 added YTD—the highest ever in the first half; 2,564 customers now over $100K ARR .
  • Profitability execution: non-GAAP operating income $86.8M (15% margin) and free cash flow $69.9M; management raised the full-year top and bottom line: “we are raising our guidance on the top and bottom line for the rest of the year” .

What Went Wrong

  • GAAP metrics still show losses: GAAP loss from operations of $65.3M and GAAP net loss of $47.0M; GAAP gross margin declined to 71% from 73% y/y, reflecting Atlas mix .
  • Direct sales customers fell by ~200 sequentially to 7,300 as the company reallocates GTM to enterprise; CFO flagged Q3 non-Atlas y/y decline in the low-20% and lower operating margin vs. Q2 .
  • Non-Atlas multiyear license revenue creates forecasting variability; CFO reduced the FY headwind from ~$50M to ~$40M after Q2 outperformance but highlighted the difficulty of predicting annual vs. multiyear choices .

Financial Results

P&L Summary (GAAP and Non-GAAP)

MetricQ4 2025Q1 2026Q2 2026
Total Revenue ($USD Millions)$548.4 $549.0 $591.4
GAAP Gross Margin %73% 71% 71%
Non-GAAP Gross Margin %75% 74% 74%
GAAP Loss from Operations ($M)$(18.6) $(53.6) $(65.3)
Non-GAAP Income from Operations ($M)$112.5 $87.4 $86.8
Non-GAAP Operating Margin %21% 16% 15%

EPS and Profitability

MetricQ4 2025Q1 2026Q2 2026
GAAP EPS (Diluted)$0.19 $(0.46) $(0.58)
Non-GAAP EPS (Fully Diluted)$1.28 $1.00 $1.00
Cash from Operations ($M)$50.5 $109.9 $72.1
Free Cash Flow ($M)$22.9 $105.9 $69.9

Revenue Breakdown

MetricQ4 2025Q1 2026Q2 2026
Subscription Revenue ($M)$531.0 $531.5 $572.4
Services Revenue ($M)$17.4 $17.6 $19.0
Atlas Mix of Total Revenue (%)71% 72% 74%

KPIs

KPIQ4 2025Q1 2026Q2 2026
Total Customers54,500+ 57,100+ 59,900+
Atlas Customers53,100+ 55,800+ 58,300+
Direct Sales Customers7,500+ 7,500+ 7,300+
Customers ≥$100K ARR2,396 2,506 2,564

Q2 FY26 vs. Wall Street Consensus (S&P Global)

MetricConsensus*Actual
Revenue ($USD Millions)$553.6*$591.4
Primary EPS (Non-GAAP) ($)$0.656*$1.00
# of EPS Estimates33*—
# of Revenue Estimates32*—

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)FY 2026$2,250–$2,290 $2,340–$2,360 Raised
Non-GAAP Income from Operations ($M)FY 2026$267–$287 $321–$331 Raised
Non-GAAP EPS (Fully Diluted) ($)FY 2026$2.94–$3.12 $3.64–$3.73 Raised
Revenue ($USD Millions)Q3 2026—$587–$592 New
Non-GAAP Income from Operations ($M)Q3 2026—$66–$70 New
Non-GAAP EPS (Fully Diluted) ($)Q3 2026—$0.76–$0.79 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25, Q1 FY26)Current Period (Q2 FY26)Trend
AI/Technology initiativesVoyage AI acquired; integrated embedding/reranking for trustworthy retrieval . MCP Server preview and new Voyage models launched; Atlas 26% y/y .Atlas 29% y/y; many customers building AI apps; expanding partnerships (LangChain, Temporal, Galileo) and adding Voyage models; AI cohort not yet material to growth .Positive adoption; still early enterprise impact.
Atlas consumption/mixAtlas 71% of Q4 revenue; consumption better than expected . Atlas 72% of Q1 revenue .Atlas 74% of Q2 revenue; strong U.S. large customers; workloads growing longer and larger .Accelerating mix and consumption.
Go-to-market focusMove upmarket; EA + Atlas flexibility; optionality emphasized .Reallocation from mid-market to enterprise; self-serve strength; direct sales customers down 200 sequentially .Enterprise focus; self-serve efficient.
Non-Atlas multiyear dynamicsFY26 guide anticipated high single-digit decline; multiyear variability .Non-Atlas ARR +7% y/y; more multiyear than expected; multiyear headwind reduced to ~$40M (from ~$50M) .Underlying ARR healthy; headline revenue volatile.
Profitability disciplineMargin expansion in Q4; debt redeemed .Non-GAAP op margin 15%; restructuring under 2% headcount to reallocate spend; Q3 margin to be lower due to mix and timing .Strong execution; watch Q3 seasonality/mix.
Public sector/regulatory—FedRAMP High and DoD IL5 pursuit; AWS IC Marketplace listing for EA .Increasing public sector focus.
R&D execution—8.0/8.1 performance; investment focus in R&D and developer awareness .Continued product investment.

Management Commentary

  • “Atlas revenue growth accelerating to 29% and adding over 5,000 customers year-to-date… we are raising our guidance on the top and bottom line for the rest of the year” — Dev Ittycheria, CEO .
  • “We are very pleased with our stronger than expected margin results… focused on running an efficient, scalable business that supports growth in revenue and profitability” — Mike Berry, CFO .
  • “AI cohort was not a material driver of the growth… the enterprise uptake of AI is still early” — Dev Ittycheria .
  • “Atlas consumption growth was strong… notable strength in larger customers in the U.S.” — Mike Berry .

Q&A Highlights

  • Atlas drivers: Workloads acquired in move upmarket are scaling; broader adoption of search/vector search; strong sequential consumption including May start .
  • AI impact: Many AI-native startups on Atlas, but cohort not yet material to quarterly growth; enterprise adoption focused on productivity and low-stakes use cases .
  • Non-Atlas multiyear revenue: Underlying ARR +7% y/y; Q2 had more multiyear deals than expected but no pull-forwards; multiyear headwind lowered to ~$40M .
  • Margin and Q3 outlook: Operating margin to be lower sequentially (mix, R&D hiring, marketing seasonality); non-Atlas expected down low-20% y/y in Q3 .
  • GTM and customers: Self-serve motion effective; reallocating sales resources upmarket reduced direct sales customer count without impacting total customers .

Estimates Context

  • Q2 FY26 beat: Revenue $591.4M vs. $553.6M consensus*, and non-GAAP EPS $1.00 vs. $0.656 consensus* .
  • Forward estimates: Q3 FY26 consensus revenue ~$593.0M* and EPS ~$0.789* are broadly aligned with company guidance ($587–$592M revenue; $0.76–$0.79 non-GAAP EPS), while company raised FY26 revenue and EPS, implying estimate upward revisions at the full-year level .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Strong beat and raise: Q2 non-GAAP EPS and revenue exceeded consensus*, and FY26 guidance was raised across revenue, operating income, and EPS—supportive of upward estimate revisions and constructive sentiment .
  • Atlas trajectory: Mix at 74% and 29% y/y growth underscore durable consumption trends; management emphasized U.S. large-account strength and upmarket workload quality .
  • Profitability discipline: 15% non-GAAP operating margin and $69.9M FCF highlight improving efficiency; note Q3 margin seasonality and mix headwinds .
  • Non-Atlas dynamics: Expect near-term volatility from multiyear license revenue (Q3 low-20% y/y decline), but underlying non-Atlas ARR grew 7% y/y .
  • AI optionality: AI-native and enterprise interest rising; management sees early-stage enterprise adoption with MongoDB positioned via integrated search/vector search and embeddings—longer-term consumption tailwind .
  • Public sector: Pursuit of FedRAMP High and DoD IL5 and AWS IC listing expand addressable market and credibility in regulated environments .
  • Trading lens: Near-term, the beat/raise is the catalyst; monitor Q3 non-Atlas decline and margin trajectory versus expectations. Medium-term, sustained Atlas growth and product/R&D execution support the thesis of durable growth and improving profitability .