MongoDB reported the July quarter after the US close on 1 September. Revenue was $771.8 million, up 30.5% — the fastest growth in three years — non-GAAP fully diluted earnings were $1.90 against a $1.62 consensus and the company's own $1.58–1.61 guide, and the full-year range went up $70 million at both ends. The stock then traded at $373.70 after hours, 13.9% below the $434.21 close, at 7:59 p.m. New York time.
Nothing in the print is bad. What the print does not contain is a second half that grows anything like 30%. Of the $70 million added to the full-year guide, roughly $40 million had already been earned in the quarter just reported — revenue came in that far above the midpoint of the guide the same table replaced. The genuinely new money in the second half is about $30 million, and the arithmetic is ours.
What the preview asked, and what the print answered
The full-year range, $2.92–2.96 billion — raised to $2.99–3.03 billion, and the shape survived. Our preview said the old range was either conservatism or a real second-half problem, and that Tuesday's revision would settle it. It half-settled it. The raise implies a second half of $1,530.6–1,570.6 million against $1,323.4 million a year ago — +15.7% to +18.7%, where the preview's version of the same sum on the old guide gave +13.2% to +16.6%. Two points better, on a quarter that just printed 30.5%. The third-quarter guide of $756–761 million is below the $771.8 million just reported.
Atlas against the 29%-plus printed in April — 28.9%, and it was not the reason the guide moved. Atlas revenue was $565.9 million, up 28.9% year over year and 10.4% sequentially, and its share of total revenue fell 90 basis points to 73.3%. The release says the raise is "mainly due to Atlas" and the call put numbers on it: approximately 26% Atlas growth in the third quarter and 27% for the year, which Mike Berry called "an increase of 300 basis points from the midpoint of our prior guidance". A record $127 million of net new Atlas revenue dollars in the quarter and "almost a $2.3 billion run rate" are call figures, not release ones.
Both EPS figures — the wedge came in narrower than guided. GAAP diluted earnings were $0.50 against a guided $0.08–0.12; non-GAAP fully diluted were $1.90 against $1.58–1.61. The distance between the two bases is $1.40, where the guide implied about $1.50. There is a third figure: the release also prints non-GAAP diluted earnings of $2.03, on 82.0 million shares rather than the 85.8 million "fully diluted" count MongoDB uses for the number the Street sets estimates on. Against a $1.62 consensus, $2.03 would read as a 25% beat and $0.50 as a 69% collapse. The beat is 17.3%, and only the $1.90 line produces it.
Share-based compensation against $137.8 million and 20.0% of revenue — $148.9 million and 19.3%. The charge grew 8.1% sequentially while revenue grew 12.2%, so the wedge narrowed for the first quarter in the run our preview was worried about. A year ago it was 23.7% of revenue.
Current remaining performance obligations against $766.3 million and +69% — $797.3 million and +73%. Total RPO is $1,519.2 million, up 91%, or 1.97 times a quarter's revenue against 1.34 times a year ago, while total deferred revenue was roughly flat at $447.7 million. Growth of that kind is contract duration and commitment, not prepayment, and the release explains none of it.
The margin, in one pair of numbers
Non-GAAP operating margin went from 15% to 24%. It is not a mix story and it is not pricing:
Sales and marketing grew 3.7% while revenue grew 30.5%. The line went from 41.3% to 32.8% of revenue in a year. Research and development fell from 30.7% to 27.7% of revenue and general and administrative from 10.1% to 9.6%. Every operating expense line grew slower than revenue, and the largest of them barely grew at all.
That is the whole of the $99.1 million increase in non-GAAP operating income, and it is the number that carries a question into fiscal 2028: a sales organisation held flat for a year against 30% revenue growth is either a business that has become genuinely self-serve at the margin, or a year of hiring deferred into the next one. On the call, Berry raised full-year margin expansion to "approximately 250 basis points… 100 basis points higher than the high end of our previous range", and put a target on it out loud — "with the combination of 23% revenue growth and 21% operating margin, we are targeting a rule of 44 performance at the high end of our fiscal 2027 outlook." Our own trailing Rule of 40 for the quarter is 48.6: 30.5% growth plus an 18.1% free cash flow margin on the $139.4 million the quarter generated after capital spending.
What changed in the story
The self-managed product is now growing faster than the cloud one. Enterprise Advanced and other revenue grew 35.9% to $181.2 million against Atlas at 28.9% — the second straight quarter it has led, and the call raised its full-year growth to "approximately 11%… up from our prior guidance of mid-single digit growth… the first time in three years EA and other is projected to grow at a double-digit rate for the full year." MongoDB shipped Search and Vector Search into self-managed Enterprise Advanced this quarter, and CJ Desai said the company is "charging our customers extra for that feature set that we are providing in EA". He also pre-empted the obvious objection: "I want to be very clear that the growth of EA, self-managed MongoDB, is not coming at the expense of Atlas." The release does not test that claim, and no disclosure in it can.
Expansion accelerated, and it is a call-only figure. Net ARR expansion was 122%, against 119% a year ago and 121% last quarter. MongoDB publishes no net revenue retention in its release, so the single best measure of whether existing workloads are growing exists only because the CFO says it on a call. Berry also volunteered that "there were no large bundled deals in the quarter" — the pre-emption of the question the RPO jump invites.
The market read the guide, not the quarter. A print that beat revenue by 5.5%, beat earnings by 17.3% and raised the year lost 13.9% after hours. On the guide above, MongoDB is telling investors the fourth quarter grows 10.7% to 17.2%. Desai's explanation for the conservatism was consumption timing rather than demand: "We need to see how things play out in the month of September, in month of October, which becomes the baseline. Then the holidays are coming in Q4, which does impact our consumption."
Against the model
Our MongoDB model, published 29 August on the April quarter, had the July quarter as its first projected quarter — so the print grades it on arrival. Its base case projected $733.8 million; the quarter came in at $771.8 million, 5.2% above. That much was almost arithmetic: the model's Atlas trend was calibrated to reproduce MongoDB's own guide, and MongoDB beat its own guide.
Where the miss sits is the finding.
| Model's July quarter | Projected | Reported | Gap |
|---|---|---|---|
| Atlas-related | $553.9m | $565.9m | +2.2% |
| Enterprise Advanced and other | $157.7m | $181.2m | +14.9% |
| Services | $22.2m | $24.6m | +10.9% |
| Total revenue | $733.8m | $771.8m | +5.2% |
Sixty-two per cent of the total beat is the Enterprise Advanced line, which the model carries growing 2.6% a quarter and fading — a mature self-managed licence in slow relative decline. It grew 17.9% sequentially. The model's own note says the line is lumpy because licence revenue is recognised substantially upfront, and one quarter does not overturn that. But the company has now guided the line to double-digit annual growth for the first time in three years and given a product reason for it, which is a different claim from lumpiness. Those projections are ours and they are assumptions, not company forecasts; the model's revision is a separate decision.
The model's bear case is the part the print actually damaged. It was anchored on taking the 28 May full-year guide literally, and that guide no longer exists. On the same construction against the new range, the implied second half is 15.7–18.7% rather than the 13.4–16.4% the bear case was built to interrogate. The shape of the argument survives — the company is still guiding a second half at roughly half the first half's growth rate — but the level moved against the bear by about two points of growth.
What is coming
The third quarter, ending 31 October 2026, is guided to $756–761 million of revenue, GAAP earnings of $0.00–0.05 and non-GAAP fully diluted earnings of $1.57–1.61, with Atlas growth of about 26% and $162.7 million of share-based compensation assumed in the reconciliation. The full year is guided to $2.99–3.03 billion and $6.39–6.58 of non-GAAP fully diluted earnings, against $0.53–0.77 on GAAP.
Three things settle in that print. Whether Enterprise Advanced holds double digits once the search and vector attach is a full quarter old. Whether the 122% expansion rate keeps rising, which is the only forward consumption number MongoDB gives and it gives it only on the call. And whether the fourth-quarter guide — the one implying 10.7% to 17.2% — moves when September and October have become, in Desai's word, the baseline.
What we learned
- The wedge between MongoDB's two EPS bases came in narrower than the guide implied. $1.40 between GAAP $0.50 and non-GAAP fully diluted $1.90, against about $1.50 guided, with stock compensation at 19.3% of revenue from 20.0% in April.
- Enterprise Advanced grew faster than Atlas again, at 35.9% against 28.9%. Atlas's share of total revenue fell 90 basis points to 73.3%, and the self-managed line is now guided to about 11% growth for the year, its first double-digit year in three.
- Sales and marketing grew 3.7% while revenue grew 30.5%. The line fell from 41.3% to 32.8% of revenue, and that single pair of numbers is the move from a 15% to a 24% non-GAAP operating margin.
- Committed backlog grew three times as fast as revenue. RPO reached $1,519.2 million, up 91%, and current RPO $797.3 million, up 73%, while deferred revenue stayed roughly flat at $447.7 million — duration and commitment, not prepayment.
- Most of the raise was money already earned. The full year went up $70 million at both ends, but about $40 million of that was the July quarter beating its own guide, and the shares still traded 13.9% lower after hours.
MongoDB, Inc. (NASDAQ: MDB) reported the three months ended 31 July 2026 after the US close on 1 September 2026. Revenue and its product and geographic splits, both earnings bases and the share counts behind them, operating expenses, stock-based compensation, cash flow, remaining performance obligations, customer counts and all guidance are the company's own, from that release and its 28 May 2026 predecessor; the full figure set is on the MongoDB Q2 FY2027 earnings page. The net ARR expansion rate, Atlas dollar growth and run rate, the Atlas and Enterprise Advanced growth guides, the margin and free-cash-flow-conversion targets and every quotation from Mike Berry and CJ Desai are from the earnings call held the same evening. Ours rather than the company's: the implied second half and fourth quarter, the share of the raise already earned, the expense and margin ratios, the Rule of 40, and the projected-versus-reported comparison and its per-line gaps, which come from our MongoDB model of 29 August 2026 and are assumptions, not forecasts. Consensus of $1.62 a share and about $731.5 million of revenue is press-reported from third-party estimate feeds on the non-GAAP fully diluted basis and is not a series this site verifies. The $434.21 close and the $373.70 after-hours quote are 1 September 2026; a live quote will differ.
