MongoDB, Inc. (MDB) stock experienced a significant jump on Friday following the company’s release of its second-quarter earnings for fiscal year 2025. The results exceeded analysts’ expectations, fueling the stock’s upward trajectory.
The company reported adjusted earnings per share (EPS) of 70 cents, surpassing the analyst consensus estimate of 49 cents. Revenue also came in higher than anticipated, reaching $478.1 million compared to the expected $464.04 million. This strong performance was driven by a 13% year-over-year increase in subscription revenue, reaching $463.8 million. Services revenue, however, saw a slight decline of 1% year-over-year, coming in at $14.3 million.
Dev Ittycheria, President and CEO of MongoDB, highlighted the company’s success in acquiring new workloads and exceeding expectations in Atlas consumption trends. He emphasized the crucial role MongoDB’s platform plays in modern application development.
Looking ahead, MongoDB provided guidance for the third quarter and the full fiscal year 2025. For the third quarter, the company anticipates revenue between $493 million and $497 million, exceeding analyst estimates of $478.75 million. Adjusted EPS is projected to be between 65 cents and 68 cents, surpassing the consensus estimate of 60 cents. For the full fiscal year 2025, MongoDB expects adjusted EPS of $2.33 to $2.47, exceeding the analyst estimate of $2.26, and revenue between $1.92 billion and $1.93 billion, surpassing the anticipated $1.9 billion.
Following the earnings announcement, numerous analysts adjusted their price targets for MongoDB stock. Piper Sandler, B of A Securities, Morgan Stanley, Mizuho, Oppenheimer, Truist Securities, Wells Fargo, UBS, and RBC Capital all raised their price targets, indicating a positive outlook for the company’s future performance.
As of the time of writing, MongoDB shares are trading 16.9% higher at $287.25. The strong earnings report and positive analyst sentiment have contributed to this surge in stock price.
