Executive Summary
MongoDB delivered a strong start to fiscal 2026 (QQ1 2026), highlighted by robust year-over-year growth, a continued shift toward higher-value Atlas workloads, and meaningful progress on strategic initiatives designed to monetize AI and modernize legacy applications. Revenue of $549.0 million rose 22% YoY and topped guidance, with Atlas representing 72% of total revenue and Atlas revenue up 26% YoY. Non-GAAP operating income reached $87.0 million for a 16% non-GAAP operating margin, underscoring the company’s ability to translate top-line outperformance into profitability, even as the business incurs ongoing investments in AI, product modernization, and go-to-market evolution. The quarter also featured a robust net-new customer cadence (total customers >57,100) and a strong cash-generation profile (OCF $110 million; FCF $106 million; cash and equivalents plus investments around $2.5 billion). Management signaled confidence in the long-term growth trajectory, raising full-year revenue guidance by $10 million to $2.25–$2.29 billion and expanding the share-repurchase program to up to $1.0 billion, reflecting balance-sheet strength and a disciplined capital-allocation framework.
However, MDB also highlighted ongoing macro uncertainty and certain near-term headwinds, including a $50 million anticipated drag from multiyear license revenue in 2026 and a high-single-digit expected decline in Non-Atlas revenue in Q2. The company remains focused on upmarket expansion, AI-driven product differentiation (Voyage AI integration and embeddings), and the acceleration of developer adoption through a strengthened self-serve channel. Investors should monitor Atlas consumption trends through the year (Q1 consumption in line, with February–March strength and a softer April, followed by a May rebound) and the pace of gross-margin progress as Voyage-related costs evolve. Overall, the setup combines a large, high-margin software platform with significant optionality in AI, multi-cloud deployment, and enterprise-scale adoption.
Key Performance Indicators
QoQ: -188.51% | YoY:45.46%
QoQ: -337.75% | YoY:53.31%
QoQ: -325.65% | YoY:58.18%
Key Insights
Revenue: $549.0 million, +22% YoY; QoQ growth: +0.1% (reported). Gross profit: $390.973 million, margin 71.2%, YoY -2.1pp, QoQ -2.1pp. Operating income: -$53.554 million, margin -9.8%, YoY +45.5% improvement, QoQ -188.5%. Net income: -$37.626 million, EPS -$0.46, YoY +53.3%, QoQ -337.8%. Gross margin: 71.2% (grossProfitMargin 0.712). Atlas: 72% of revenue, up from 70% in 1Q2025 and 71% last quarter; Atlas consumption growth in line with expectations; 55,800+ Atlas customers. Customer metrics: to...
Financial Highlights
Revenue: $549.0 million, +22% YoY; QoQ growth: +0.1% (reported). Gross profit: $390.973 million, margin 71.2%, YoY -2.1pp, QoQ -2.1pp. Operating income: -$53.554 million, margin -9.8%, YoY +45.5% improvement, QoQ -188.5%. Net income: -$37.626 million, EPS -$0.46, YoY +53.3%, QoQ -337.8%. Gross margin: 71.2% (grossProfitMargin 0.712). Atlas: 72% of revenue, up from 70% in 1Q2025 and 71% last quarter; Atlas consumption growth in line with expectations; 55,800+ Atlas customers. Customer metrics: total customers >57,100; 2,506 customers with ARR >= $100k (up 17% YoY). ARR expansion rate: ~119%.
Non-GAAP operating margin: 16% (non-GAAP). Operating cash flow: $109.929 million; free cash flow: $109.929 million. Cash and investments: ~$2.5 billion. Balance sheet: cash and cash equivalents + short-term investments: $2.5B; total assets: $3.624 billion; total liabilities: $591.47 million; stockholders’ equity: $3.03295 billion. FY2026 guidance: Revenue $2.25–$2.29 billion; Non-GAAP operating income $267–$287 million; Non-GAAP EPS $2.94–$3.12; Q2 revenue guidance: $548–$553 million; Q2 non-GAAP op income $55–$59 million; Q2 non-GAAP EPS $0.62–$0.66 (assuming ~20% non-GAAP tax). Note: ~$50 million headwind from multiyear license revenue expected in 2026.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
549.01M |
21.85% |
0.11% |
| Gross Profit |
390.97M |
20.24% |
-2.11% |
| Operating Income |
-53.55M |
45.46% |
-188.51% |
| Net Income |
-37.63M |
53.31% |
-337.75% |
| EPS |
-0.46 |
58.18% |
-325.65% |
Management Commentary
- Strategy & AI: Dev Ittycheria underscored the firm’s position as a platform for modern AI-powered applications, emphasizing real-time data, integrated search, and smart retrieval. He highlighted Voyage AI acquisition and Voyage 3.5, noting Embeddings as a key bridge between LLMs and customer data, with cost improvements (Embeddings storage costs reduced by >80%). He stated MongoDB’s architecture is purpose-built for complex, evolving data and real-world AI workloads, contrasting it with competitors that bolt-on features to relational platforms. Quote: “Embeddings are the bridge between a large language model and a customer's private data… Voyage 3.5… reducing storage costs by more than 80%.”
- Adoption & customers: Management stressed rising enterprise adoption and developer-led demand, citing Zepto’s migration from Postgres to Atlas to scale and reduce latency by 40% while handling six times more traffic. Zepto example demonstrates real-world ROI and substantiates the platform’s scalability and performance virtues. Quote: “Zepto… migrated to MongoDB Atlas… reduce latency by 40%, handle six times more traffic, and improve page load times by 14%.”
- GTM & productivity: The company outlined an upmarket push complemented by a self-serve motion, with over 7,500 direct-sales customers and Atlas-driven account expansion; new leadership appointments (CFO Mike Gordon and CMO May Petrie) were positioned to accelerate growth through disciplined cost management and stronger market awareness. Quote: “We hired a new leader… to lead our application modernization program,” and “self-serve motion is a powerful engine for long-term growth.”
- Guidance & capital allocation: CFO Mike Gordon communicated a disciplined stance on capital allocation, including an expanded buyback program (up to $800 million additional shares, total authorization $1 billion) and a commitment to margin improvement, cash flow generation, and efficiency. Quote: “Board has authorized an increase to our share repurchase program, up to an additional $800 million… bringing total authorization to $1 billion.”
- Near-term outlook: Management emphasized macro headwinds and SAAS consumption variability, with Atlas consumption in Feb–Mar driving growth, a soft April, and a May rebound; they cautioned that Q2 Non-Atlas will likely decline mid-single digits year over year. Quote: “Atlas consumption growth was in line with our expectations… good consumption growth in February and March, some softness in April… healthy rebound in May.”
Atlas revenue grew 26% year-over-year, representing 72% of revenue.
— Dev Ittycheria
Embeddings are the bridge between a large language model and a customer's private data. Voyage's leading embedding and re-ranking models allow customers to feed precise and relevant context into LLMs, significantly improving the accuracy and reliability of the output of AI applications.
— Dev Ittycheria
Forward Guidance
- Full-year guidance raised: Revenue now expected to be $2.25–$2.29 billion, up $10 million from prior guidance, reflecting Atlas strength and EA timing differences. Non-Atlas subscription revenue expected to be down in the high single digits for the year, with Non-Atlas ARR growing YoY. A roughly $50 million headwind from multiyear license revenue persists in FY2026.
- Margin expectations: Non-GAAP operating margin raised to ~12% midpoint (from 10% prior).
- Profitability outlook: Non-GAAP net income per share guided to $2.94–$3.12 on ~87.6 million diluted shares.
- Q2 outlook: Revenue of $548–$553 million; Non-GAAP income from operations $55–$59 million; Non-GAAP net income per share $0.62–$0.66 (tax provision ~20%).
- Investment thesis: Management emphasizes prioritizing margin discipline and ROI, while sustaining growth investments in AI, Voyage, app modernization tooling, and go-to-market efficiency. Key factors to monitor: Atlas consumption trajectory (monthly trends, especially in a volatile macro environment), Non-Atlas performance (EA pipeline and renewals), share-repurchase progress, and the ongoing evolution of enterprise upmarket deals.