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MongoDB shares slide after Q2 as AI-driven growth offsets higher costs
MongoDB reported 30.5% Q2 FY2027 revenue growth, while adjusted operating margin rose 900 basis points to 24% despite operating expenses increasing 12%.
MongoDB shares fell after the company’s Q2 fiscal year 2027 earnings, even as results highlighted accelerating momentum tied to AI adoption, with analysts also lifting price targets. MarketBeat Ratings linked the early-September pullback to sell-the-news profit-taking, citing the company’s stronger-than-expected performance and profitability.
The quarter showed revenue growth of 30.5%, supported by a 31% increase in subscriptions and a 30% increase in services. Atlas, MongoDB’s unified platform, grew 29%, and Enterprise Advanced rose 36% year over year to 24% of revenue, according to MarketBeat Ratings.
Despite the growth, MarketBeat Ratings pointed to a 12% increase in operating expenses as a key factor behind investor concern, noting it can pressure cash flow and capacity to create shareholder value. The outlet said the negative impact was mitigated by margin expansion, driven by increased revenue leverage and operational quality.
MarketBeat Ratings also reported that adjusted operating margin improved by 900 basis points to 24%, nearly doubling adjusted net income and free cash flow. Free cash flow totaled $137.6 in the quarter, and the outlet expects the market to narrow the early post-release gap as it reassesses the business’s AI-driven growth story.