MongoDB raised its fiscal 2027 outlook after posting a 30% increase in second-quarter revenue, as expanding use of its cloud database platform and stronger Enterprise Advanced sales pushed growth to its highest rate in several years. The New York-based software company reported revenue of $771.8 million for the quarter ended July 31, up from $591.4 million a year earlier and comfortably above the range it had forecast three months earlier.

The result represented a notable acceleration from the 25% year-over-year revenue growth MongoDB reported in its fiscal first quarter. Subscription revenue, which accounts for the overwhelming majority of the company’s business, increased 31% to $747.1 million. Services revenue rose 29% to $24.6 million. The figures reinforce MongoDB’s position as one of the larger independent vendors competing for database spending as corporations modernize applications, shift workloads across public and private clouds, and begin deploying generative and agentic AI systems.

Management responded to the quarter by raising its full-year revenue guidance to between $2.99 billion and $3.03 billion, implying growth of roughly 21% to 23% for fiscal 2027. The company’s previous outlook, issued in May, called for revenue of $2.92 billion to $2.96 billion. The approximately $70 million increase at both ends of the range is important because MongoDB said the higher expectations for the second half are being driven mainly by strength in Atlas, its hosted database-as-a-service platform.

Atlas remains the central variable in MongoDB’s growth profile. Atlas-related revenue totaled approximately $565.9 million during the quarter, compared with $439.0 million a year earlier, an increase of about 29%. Atlas represented roughly 73% of total quarterly revenue. The platform allows customers to run MongoDB databases across major cloud infrastructure providers without managing the underlying database infrastructure themselves, making its consumption trends an important indicator of both customer activity and cloud application development.

Enterprise Advanced and other revenue, meanwhile, increased roughly 36% year over year to $181.2 million. That performance highlighted the value of MongoDB’s strategy of supporting both managed cloud deployments and software operated by customers in their own data centers, private clouds or hybrid environments. The company has increasingly emphasized this “run anywhere” model as regulated industries and large enterprises look to deploy data and AI workloads without placing every application in a public-cloud environment.

The growth mix also helped MongoDB exceed the expectations it set after its fiscal first quarter. In late May, the company had forecast second-quarter revenue of $729 million to $734 million. Actual revenue finished more than $37 million above the top of that range. Market estimates before the report had clustered around the mid-$730 million level, making the revenue beat one of the most closely watched elements of the release.

Profitability improved even faster than revenue. MongoDB reported GAAP operating income of $28.4 million, reversing a $65.3 million operating loss in the comparable quarter last year. Its GAAP operating margin was about 4%, compared with a negative 11% margin a year earlier. Gross profit increased to $569.8 million, while the GAAP gross margin expanded to 74% from 71%.

On an adjusted basis, operating income rose to $185.9 million from $86.8 million. MongoDB’s non-GAAP operating margin reached 24%, up from 15% a year earlier. The improvement is particularly relevant for investors assessing whether high-growth infrastructure software companies can continue expanding while reducing the relative burden of sales, research and corporate expenses.

MongoDB also reported GAAP net income of $40.9 million, or $0.50 per diluted share, compared with a net loss of $47.0 million, or $0.58 per share, in the year-earlier period. It was the company’s third consecutive quarter of GAAP earnings-per-share profitability. Non-GAAP net income was $162.6 million, equivalent to $1.90 per fully diluted share, compared with $87.2 million and $1.00 per share a year earlier.

The higher earnings translated into stronger cash generation. Operating cash flow reached $141.9 million, nearly double the $72.1 million reported in the year-ago quarter. Free cash flow rose to $137.6 million from $69.9 million. MongoDB ended July with approximately $2.4 billion in cash, cash equivalents, short-term investments and restricted cash, giving the company substantial liquidity as it continues investing in product development, sales capacity and AI-related technology.

The company’s contract indicators also strengthened. Remaining performance obligations reached $1.52 billion, up 91% from a year earlier, while current remaining performance obligations increased 73% to $797.3 million. MongoDB said approximately 52% of total remaining performance obligations are expected to be recognized as revenue over the next 12 months, although the timing of revenue recognition can vary because some Atlas revenue depends on customer consumption.

Customer expansion continued alongside revenue growth. MongoDB finished the quarter with more than 70,600 customers, up from more than 59,900 a year earlier and 67,700 at the end of April. Atlas customers exceeded 69,300, compared with 58,500 in the prior-year period. The number of customers generating at least $100,000 in annualized recurring revenue increased to 2,999 from 2,564 a year earlier.

The company reported a net annualized recurring revenue expansion rate of 122% as of July 31. That measure points to increased spending among existing customers and is particularly significant for MongoDB because Atlas is consumption-oriented: customer revenue can rise as applications attract more users, process more transactions or incorporate additional database, search and AI functionality.

Chief Executive CJ Desai attributed the quarter’s performance to continued strength in mission-critical enterprise workloads as well as early traction from AI-related use cases. MongoDB has been positioning its database platform as an operational data layer for applications that need to combine transactional information with search, vector retrieval, streaming data and AI models.

The AI strategy has become increasingly intertwined with Atlas. During the quarter, MongoDB expanded retrieval capabilities designed to help developers connect generative AI systems with live operational data. It has also been integrating technology from Voyage AI, the AI retrieval company MongoDB acquired previously, into products covering embeddings, reranking and vector search. Those functions are intended to improve the accuracy with which AI applications retrieve relevant information before producing responses or executing tasks.

MongoDB has also launched a managed Model Context Protocol server that allows coding agents to connect directly with MongoDB Atlas data. The company has promoted support for coding tools and autonomous developer agents as another potential source of database usage, reasoning that applications created faster with AI-assisted development could ultimately generate additional workloads for its platform.

Management’s decision to describe Atlas as the main driver of the second-half guidance increase is therefore a key signal. For much of the software sector, investors have been trying to distinguish companies benefiting directly from AI infrastructure spending from vendors where AI remains primarily a longer-term opportunity. MongoDB’s quarterly results indicate that traditional application modernization and database consumption remain the larger near-term businesses, while AI is beginning to broaden the types of workloads customers may place on the platform.

For the fiscal third quarter, MongoDB forecast revenue of $756 million to $761 million. The range would represent approximately 20% to 21% growth from the prior-year period. The company expects non-GAAP operating income of $152 million to $156 million and non-GAAP earnings of $1.57 to $1.61 per share. GAAP operating results are projected to remain slightly negative for the quarter, with an operating loss of $10.5 million to $14.5 million.

MongoDB also raised its full-year profit targets. Non-GAAP operating income is now expected to reach $616.3 million to $636.3 million, compared with an earlier forecast of $571 million to $591 million. Non-GAAP earnings per share are projected at $6.39 to $6.58, up from the prior range of $5.95 to $6.14. On a GAAP basis, management now expects full-year earnings of $0.53 to $0.77 per share.

The improved profit outlook underscores the operating leverage visible in the second-quarter numbers. Sales and marketing expense increased at a substantially slower pace than revenue, while subscription gross margins remained high. MongoDB is still spending heavily on research, product development and stock-based compensation, but stronger revenue growth is allowing more of each additional dollar of sales to flow through to operating income and cash flow.

Investors nevertheless reacted cautiously to the report. MongoDB shares fell sharply in trading following the earnings release despite the revenue and earnings beat and the higher full-year outlook. The pressure reflected expectations that had risen substantially ahead of the report, particularly around Atlas. Some investors had been looking for cloud growth above the roughly 29% level that MongoDB ultimately delivered.

The reaction illustrates an increasingly demanding valuation environment for high-growth software companies. Strong headline growth and improving margins can be insufficient when investors have already priced in faster expansion in a company’s most strategic business. Atlas growth has remained close to the high-20% range for several quarters, prompting the market to focus on whether AI workloads and large-enterprise adoption can create a more durable reacceleration.

Analysts remained more constructive than the stock reaction suggested. Several firms continued to view MongoDB as well positioned for long-term application modernization and AI development, although commentary after the results acknowledged that near-term Atlas growth did not clear the elevated expectations embedded in the share price. The contrast between stronger companywide results and disappointment over one closely watched growth metric is likely to keep Atlas consumption at the center of investor attention in coming quarters.

The Enterprise Advanced result also complicates a purely cloud-centric reading of the quarter. Its roughly 36% growth demonstrates that customers continue to invest in MongoDB deployments outside the fully managed Atlas service. For enterprises managing sensitive data, regulatory requirements or hybrid infrastructure, the ability to use similar database and search technologies across deployment models may remain a competitive advantage even as cloud adoption expands.

Geographically, demand was broad. Revenue in the Americas reached $478.3 million, up from $364.2 million a year earlier. Europe, the Middle East and Africa generated $210.3 million, compared with $161.0 million, while Asia-Pacific revenue increased to $83.2 million from $66.2 million. That distribution suggests MongoDB’s growth is not dependent on a single region or customer market.

The next phase of the earnings story will center on whether Atlas can deliver the stronger second-half performance embedded in management’s revised forecast. Because Atlas is usage-based, results can respond relatively quickly to changes in customer application activity, cloud optimization efforts and broader enterprise spending. A sustained acceleration would strengthen the argument that MongoDB is benefiting from both application modernization and new AI workloads; slower consumption would put greater emphasis on Enterprise Advanced growth and cost discipline.

For now, the fiscal second quarter showed meaningful progress on several fronts: total revenue accelerated to 30%, the company exceeded its own forecast by a wide margin, margins expanded, free cash flow nearly doubled and full-year guidance moved higher. The more difficult question for investors is whether those improvements represent the beginning of a sustained growth reacceleration or a particularly strong quarter against expectations that are becoming progressively harder to exceed.