MongoDB shares surged on Tuesday after the document database company sharply raised its full-year earnings forecast and posted stronger-than-expected third-quarter results.
The stock jumped 23% to $404.81 in premarket trading, extending a rally that has already made it one of the standout performers of 2025.
The company now expects adjusted earnings of $4.76 to $4.80 a share for the fiscal year, a substantial increase from its earlier forecast of $3.64 to $3.73.
Full-year revenue is projected to reach $2.43 billion to $2.44 billion, up from a previous range of $2.34 billion to $2.36 billion.
MongoDB also offered upbeat fourth-quarter guidance, forecasting revenue of $665 million to $670 million and adjusted earnings of $1.44 to $1.48 a share.
Analysts had expected $626 million in revenue and earnings of 94 cents.
Analysts lift targets as AI demand accelerates
The stronger outlook triggered a wave of analyst upgrades.
Cantor Fitzgerald’s Thomas Blakey said AI demand remains underappreciated in the stock’s valuation, raising his price target to $454 from $406 while maintaining an Overweight rating.
“The AI tailwind, in our view, continues to not be fully priced into shares even at recently expanded multiples… we see multiple levers of optionality for MDB shares from future beat-and-raise prints,” Blakey said.
The new price target projects that MongoDB will trade at 13-times its revenue for 2026.
Citizens JMP increased its target by $40, and Barclays lifted its forecast by $25.
Piper Sandler, which reiterated an Overweight rating and set a price target of $490, said MongoDB’s momentum in its Atlas multi-cloud database service and recent leadership hires strengthen its position in modern databases and AI infrastructure.
The firm added that MongoDB could exceed the Rule of 40 this year.
Morningstar, which set a fair value estimate of $303, said MongoDB enables rapid AI application development but must prove its performance can scale for large enterprises.
Scotiabank, maintaining a Sector Perform rating with a $415 target, said the company is well placed to grow market share but urged caution until AI-related demand becomes more predictable.
Strong quarter driven by broad-based demand
For the third quarter, MongoDB reported adjusted earnings of $1.32 a share, easily beating analyst expectations of 81 cents.
Revenue rose 19% year-on-year to $628.3 million, exceeding the $593.9 million forecast.
Chief Executive CJ Desai said the quarter’s performance reflected demand across industries, supported by growth from both new clients and existing customers expanding usage.
MongoDB’s Atlas platform grew 30% year-over-year, accelerating from the previous two quarters.
Desai told analysts that AI adoption remains a key driver, with startups building products around AI tools and large enterprises integrating AI agents turning to MongoDB for data infrastructure.
He said the company is investing in capabilities required to support increasingly complex AI workloads.
AI boom keeps stock among top performers
Even before Tuesday’s surge, MongoDB had been on a strong run this year.
Shares are up 41% in 2025, fuelled by investor conviction that it can defend its database territory against rivals such as Snowflake and Databricks while capturing new AI-related demand.
The S&P 500, by comparison, is up 16% this year.
Analysts say the guidance upgrade suggests the company’s growth trajectory remains intact, with the AI boom continuing to act as a powerful tailwind heading into 2026.
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