Executive Summary
MongoDB, Inc. delivered a strong QQ2 2026 quarter with revenue of $591.4 million, up 24% year over year and above the high end of guidance. Atlas revenue growth accelerated to 29% YoY and now accounts for 74% of total revenue, underscoring the company’s ability to monetize higher-value workloads and larger enterprise deployments. The company ended the quarter with just under 60,000 customers, including over 58,300 Atlas customers, reflecting continued upmarket expansion. However, consolidated gross margin declined modestly to 71% from 75% a year ago due to Atlas mix, while non-GAAP operating income reached $87 million for a 15% margin, evidencing margin expansion on revenue outperformance. Management raised full-year revenue and margin guidance, signaling confidence in Atlas-driven growth and ongoing efficiency initiatives.
Management remains focused on the AI opportunity, highlighting Atlas as a core platform for AI applications, and emphasizing embedded AI capabilities (vector search, embeddings, stream processing) as differentiators. While AI adoption remains in early-to-mid stages across enterprises, MDB is investing in product and GTM initiatives (Investor Day, AppMod tooling, developer outreach) to accelerate the transition from prototype to scale. The quarter featured a modest restructuring charge (~$5 million) and a capital allocation program that included a $200 million share repurchase, underscoring a disciplined approach to profitability while investing for growth. The outlook contemplates a high single-digit to mid-20s revenue trajectory for Atlas in the second half and a mid-teens to low-20s non-Atlas decline, with full-year guidance raised to reflect the Q2 outperformance.
Key Performance Indicators
QoQ: -25.04% | YoY:13.72%
QoQ: -26.09% | YoY:21.62%
Key Insights
Revenue: $591.4M (+24% YoY; +7.7% QoQ); Atlas revenue growth: +29% YoY; Atlas mix: 74% of total revenue; Non-Atlas ARR growth: +7% YoY; Net ARR expansion rate: ~119%; Customers: ~59,900 (Atlas >58,300; direct sales ~7,300); Gross profit: $419.97M; Consolidated gross margin: 71.0%; GAAP operating income: -$65.29M; non-GAAP operating income: +$87.0M (non-GAAP margin ~15%); EBITDA: -$65.29M; Net income: -$47.05M; EPS: -$0.58; Shares (diluted): ~81.08M; Operating cash flow: $72.1M; Free cash flow...
Financial Highlights
Revenue: $591.4M (+24% YoY; +7.7% QoQ); Atlas revenue growth: +29% YoY; Atlas mix: 74% of total revenue; Non-Atlas ARR growth: +7% YoY; Net ARR expansion rate: ~119%; Customers: ~59,900 (Atlas >58,300; direct sales ~7,300); Gross profit: $419.97M; Consolidated gross margin: 71.0%; GAAP operating income: -$65.29M; non-GAAP operating income: +$87.0M (non-GAAP margin ~15%); EBITDA: -$65.29M; Net income: -$47.05M; EPS: -$0.58; Shares (diluted): ~81.08M; Operating cash flow: $72.1M; Free cash flow: $70.0M; Cash, cash equivalents, and investments: ~$2.34B; Cash at period end: $650.2M; Total assets: $3.542B; Total liabilities: $0.599B; Total stockholders’ equity: $2.943B; End-period net debt: negative ~$0.611B (net cash).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
591.40M |
23.70% |
7.72% |
| Gross Profit |
419.97M |
20.04% |
7.42% |
| Operating Income |
-65.29M |
8.60% |
-21.92% |
| Net Income |
-47.05M |
13.72% |
-25.04% |
| EPS |
-0.58 |
21.62% |
-26.09% |
Management Commentary
Key takeaways from management discussions and Q&A:
- Strategy and GTM cadence: Dev emphasized continued upmarket tightening and a data-driven self-serve optimization, with no plan to abandon self-serve as an early-market channel, while expanding direct sales for enterprise workloads. “We are moving up markets. We are focusing our high-end sales force on the most sophisticated and demanding customers... using our self-serve channel to better serve the SMB market.”
- Atlas performance and AI framing: Mike Gordon noted Atlas grew 29% YoY and represented 74% of revenue; Dev highlighted MDB as a standard for AI applications and stressed embedded AI capabilities (search, vector search, embeddings) as core differentiators. “Atlas growth ... accelerating to 29% YoY” and “MongoDB is emerging as a standard for AI applications.”
- AI workload commentary and timing: Dev noted AI adoption is real but still early in enterprises; most value currently seen in end-user productivity tools and packaged IoT solutions, with broader enterprise deployments to come as trust and scale improve. “The enterprise uptake of AI is still early,” and “the real enduring value will come when they build custom AI solutions that truly transform their business.”
- App modernization and migration: Dev discussed app modernization as a longer-term growth vector, supported by new leadership and tooling to automate refactoring; GTM focus will balance self-serve with targeted enterprise sales as workloads scale.
- Financial discipline and capital allocation: The company executed a $200 million share repurchase and disclosed a modest $5 million one-time restructuring charge, underscoring a disciplined approach to investing for growth while preserving margins.
- Guidance and outlook: Management raised FY2026 revenue guidance and operating margin, signaling confidence in Atlas consumption and efficiency initiatives, while noting a non-Atlas ARR trajectory that will likely remain in the mid-single digits decline for the year and a $40 million multiyear headwind (down from $50M previously).
“Atlas grew 29% in the quarter and now represents 74% of total revenue.”
— Mike Gordon
“MongoDB, Inc. is emerging as a standard for AI applications.”
— Dev Ittycheria
Forward Guidance
Outlook and assessment:
- Q3 2026 guidance: Revenue $587–$592 million; non-GAAP operating income $66–$70 million; non-GAAP EPS $0.76–$0.79 (assuming 20% non-GAAP tax rate) based on 87.7 million diluted shares.
- FY2026 guidance: Revenue $2.34–$2.36 billion (raised by $70 million from prior guide); non-GAAP operating income $321–$331 million; non-GAAP EPS $3.64–$3.73 (based on 87.4 million diluted shares).
- Atlas trajectory: Expect mid-20s% growth in Atlas in H2; non-Atlas ARR to grow YoY but decline mid-single digits for the year; multiyear headwind reined to roughly $40 million due to Q2 outperformance.
- Margin and investment posture: Operating margin target raised to 14% (high end) from 12.5%; ongoing investments in R&D and developer awareness, plus app modernization tooling.
- Key factors investors should monitor: (1) Atlas consumption momentum by geography and enterprise segment, (2) progression and yield of non-Atlas ARR, (3) progression of AI-related workloads and enterprise adoption, (4) efficiency gains from product improvements and disciplined spending, (5) conversion of self-serve to enterprise deals and longer-term multiyear commitments, (6) potential further restructurings or timing shifts in R&D hiring.