MongoDB Inc. shares rose after Rosenblatt Securities increased its price target to $445 from $395, maintaining a buy rating following the company’s second-quarter results. The upgrade reflects stronger-than-expected growth in the Atlas cloud product, which accounted for 73% of total revenue and achieved a run rate exceeding $2 billion.
The New York-based software company reported Q2 revenue of $729 million, up 30% year-over-year and surpassing Rosenblatt’s estimate by about 5%. Atlas revenue grew 29% YoY, marking its fifth consecutive quarter at that pace, while non-Atlas revenue increased 36%. MongoDB added a record 2,900 customers in the quarter, with its Voyage customer base nearly doubling sequentially.
Operating margins reached 24% in Q2, exceeding Rosenblatt’s forecast of 21%. For the full fiscal year 2027, management raised its revenue guidance to a range of $2.99 billion to $3.03 billion, up from the prior consensus of $2.96 billion. The upper end of the forecast was increased by $70 million, and operating margins are expected to be around 21%.
Atlas revenue growth for FY2027 is now projected at 27%, up from Rosenblatt’s prior estimate of 25%, though second-half growth is expected to moderate relative to the first half. Non-Atlas revenue is forecast to grow about 11%, an increase from the prior estimate of roughly 5%.
For Q3, MongoDB guided for non-GAAP EPS between $1.57 and $1.61, operating income of $152 million to $156 million, and revenue between $756 million and $761 million. The stock has gained 33.6% over the past six months.
Other analysts also revised their targets: Canaccord raised its target to $480, Morgan Stanley to $430, and Guggenheim to $560, all maintaining buy ratings. Citizens maintained its $519 target with a market outperform rating, while Needham kept its $430 target unchanged.
