AI engine driven MongoDB (MDB.US) has promising growth prospects! Wall Street collectively sings praises after earnings.

Surpassing expectations for the third quarter performance and raised full-year performance guidance boosted the stock price of database software manufacturer MongoDB (MDB.US) by a staggering 22.23% on Tuesday, followed by an additional nearly 1% increase to $405.94 on Wednesday. Several Wall Street banks maintained their bullish ratings on the stock and raised their target prices after MongoDB unveiled its latest performance. Data shows that MongoDB's total revenue in the third quarter grew by 19% year-on-year to $628 million, far surpassing market expectations of $592 million; adjusted earnings per share were $1.32, also significantly higher than the market expectation of $0.80. The revenue of the highly anticipated Atlas cloud database product grew by 30% year-on-year (above the market's expected growth rate of 20%-25%), accounting for about 75% of the company's total revenue in the third quarter and serving as a major driving force behind the overall high growth trend. The company also raised its full-year performance outlook, increasing its 2026 full-year revenue guidance to a range of $2.434 billion to $2.439 billion (previously expected to be $2.34 billion to $2.36 billion), exceeding the market's expectation of approximately $2.36 billion. Several major banks raised their target prices Guggenheim reiterated a "buy" rating on MongoDB, raising the target price from $400 to $450. Analyst Howard Ma stated in a report, "The 30% revenue growth of Atlas in the third quarter meets expectations and exceeds market consensus by over 3 percentage points. Although slightly lower than our higher expectation of 31% year-on-year growth (which is also our forecast for Atlas's fourth-quarter revenue growth), we believe that given the company's far better-than-expected guidance for the fourth quarter performance, investors should no longer find this target difficult to achieve. Management of the company pointed out that demand from large enterprises in the United States and Europe, the Middle East, and Africa regions remains robust." Howard Ma added, "We currently expect MongoDB's total revenue for the 2026 fiscal year to ultimately grow by 23%, and total revenue for the 2027 fiscal year to grow by at least 25%. Atlas business revenue will maintain a steady growth of 29%." Citi maintained a "buy" rating on MongoDB with a target price of $440. Analysts led by Tyler Radke stated in a report, "While there are some revenue recognition preconditions in the fourth quarter, the overall performance indicates continued acceleration in business and profit growth, reflecting improved execution and enhanced AI momentum. We expect the stock price to continue to rise with accelerated growth and another strong performance correction." Wedbush maintained a "outperform" rating on MongoDB, raising the target price from $400 to $440. MongoDB was also included in Wedbush's "Best Investment Ideas" list and "Ives AI 30" list. Analyst Dan Ives stated in the report, "MongoDB has delivered yet another strong quarter with ongoing improvements in the Atlas user metrics and an expanding share in the business pipeline. The company is in a more favorable position for monetization in the future, successfully integrating operational leverage into its business model." Jefferies reiterated a "hold" rating on MongoDB, with the target price raised from $320 to $415. Analysts Patrick Colville and Joe Vandrick said, "After leading MongoDB for 11 years, Dev Ittycheria has delivered an impressive farewell performance, providing a solid development platform for the new CEO, Chirantan 'CJ' Desai." They added, "While MongoDB's performance is clearly outstanding, with the stock price already reaching about 60 times the expected EBITDA for the 2026 fiscal year, we need evidence from extensive customer interviews to support further valuation expansion as growth momentum can continue into the 2027 fiscal yearand we currently cannot confirm this." HSBC reiterated a "neutral" rating on MongoDB, raising the target price from $250 to $310. Analysts led by Siti Panigrahi stated in the report, "The new CEO has clarified key areas of focus, emphasizing the expansion of Fortune 500 and Global 2000 enterprise clients, as well as making early progress in AI-native companies. He will leverage his corporate relationships and Silicon Valley connections to position MongoDB as an AI infrastructure. We are encouraged by the growth in Atlas revenue and continue to focus on the sustainability of growth and whether AI can become a significant revenue drive." A new round of growth for MongoDB begins With high-quality financial data from MongoDB, along with the recent strong growth in overall revenue from Alphabet Inc. Class C's cloud platform, the significant increase in Token volume for the Gemini series products, and the massive AI capital expenditure of Alphabet Inc. Class C, it is apparent that the demand for data platforms in the AI application layer and the cloud-based AI inference power requirement on platforms like Alphabet Inc. Class C's cloud computing are in very high demand. Furthermore, with the introduction and rapid adoption of the Gemini3 series AI products, including Nano Banana Pro, by Alphabet Inc. Class C, both in global enterprises and consumer users, the entire "Alphabet Inc. Class C AI ecosystem" including MongoDB is still on track for strong growth. It is reported that MongoDB, with long-term deep integration with Atlas and Alphabet Inc. Class C's cloud/Vertex AI, has become a core beneficiary in cloud database construction and vector retrieval layers in this AI wave. The AI application stack represented by Atlas+Vertex AI is entering a stage of practical and scalable development, targeting the increasing demand for practical AI applications such as AI software, AI search, AI recommendations, and AI intelligent agents for both B-end and C-end users, and is being widely implemented. As one of the core participants in the "Alphabet Inc. Class C AI ecosystem," MongoDB's growth logic is clearly tied to Alphabet Inc. Class C's cloud platform and the complete cloud database technology roadmap with the Gemini series AI application software from development to deployment. MongoDB's own case studies on its website mention that the vast majority of AI startups use Alphabet Inc. Class C's cloud (Google Cloud) + MongoDB Atlas as their main database and cloud-based AI infrastructure to run a complete AI ecosystem platform for the development and successful deployment of AI applications based on LLM (large language models) on the cloud. With the comprehensive third-quarter performance exceeding expectations and the updated full-year outlook, along with Alphabet Inc. Class C's recent increase in AI capital expenditure and its stronger cloud computing business revenue growth, MongoDB, as a part of the "Alphabet Inc. Class C AI ecosystem," is expected to follow the explosive expansion based on Alphabet Inc. Class C's cloud platform and usher in a new round of growth.