Here's our initial take on MongoDB's (NASDAQ: MDB) fiscal 2026 first-quarter financial report.

Key Metrics

Winning more customers

MongoDB added 2,600 net new customers in the first quarter of fiscal 2026, bringing its total customer count for the platform-agnostic, document-oriented database, software provider to approximately 57,100. That's the largest quarterly customer gain in six years. Most of those new customers are using Atlas, the company's managed database offering, while the rest opted for MongoDB Enterprise. Atlas revenue grew by 26% year over year in Q1 and accounted for 72% of overall Q1 revenue.

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MongoDB's profitability improved substantially in Q1. While the company still posted a net loss according to generally accepted accounting principles (GAAP), that loss was more than cut in half from the prior-year period. Non-GAAP earnings per share nearly doubled, and free cash flow soared by 74%. MongoDB kept its sales and marketing spending roughly flat year over year and cut its general and administrative spending, which partially offset a rise in R&D spending and led to a small overall increase in operating expenses.

Along with its Q1 report, MongoDB announced an additional $800 million has been authorized for share repurchases. This brings the total authorization to $1 billion. Looking ahead to Q2, MongoDB expects revenue between $548 million and $553 million, and adjusted earnings per share (EPS) between $0.62 and $0.66.

Immediate market reaction

Share prices of MongoDB shot up 12% in after-hours trading Wednesday as investors digested the company's Q1 report. MongoDB beat analyst expectations across the board, and the major profitability improvements combined with solid Atlas growth gave investors plenty to like. MongoDB stock was down about 14% year to date going into the report, so if this rally holds, the stock should regain much of that lost ground on Thursday.

What to watch

MongoDB sees a big opportunity to ride the artificial intelligence (AI) wave and position its platform as an easy choice for companies looking to modernize applications. The company acquired Voyage AI, an AI model developer, earlier this year, a move aimed at helping customers build AI-powered applications. MongoDB also recently launched a public preview of its Model Context Protocol Server, enabling developers to interact with databases using natural language. With no end in sight to the AI boom, MongoDB is set to benefit from soaring AI demand.

Helpful resources

• Full earnings report
• Investor relations page

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MongoDB (NASDAQ: MDB) stock, provider of cloud-based database services, soared 15.8% through 11:15 a.m. ET Thursday after announcing tremendous earnings last night.

Heading into its fiscal Q1 2026 report, analysts forecast MongoDB would earn $0.66 per share on sales of $527.5 million. Instead, MongoDB reported sales of $549 million -- and EPS $1 on the nose.

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MongoDB's Q1 earnings

Not all the news was good. Sales surged 22% year over year at MongoDB, but the gross profit margin the company earned on those sales contracted, from 73% to just 71%. Moreover, the $1 "profit" MongoDB reported was only an adjusted, non-GAAP number. Actual earnings as calculated according to generally accepted accounting principles (GAAP) remained negative, with MongoDB reporting a $0.46 GAAP loss for the quarter.

Still, that was less than half last year's Q1 GAAP loss of $1.10 per share. Even better, MongoDB grew its free cash flow 74% year over year, to $105.9 million in the quarter.

Is MongoDB stock a buy?

Thus, while still GAAP-unprofitable (MongoDB has never reported a GAAP profit) and lacking a P/E ratio, MongoDB has now generated nearly $166 million in free cash flow over the last 12 reported months, a new record. Granted, this still gives MongoDB stock a very expensive-looking price-to-free cash flow ratio of 114 -- but at least it's a positive number.

And MongoDB is still growing. Management says sales will probably exceed analyst estimates at $548 million to $553 million next quarter, and more than $2.25 billion for the year. Non-GAAP earnings forecasts also came in ahead of expectations.

Now, if only someone could convince MongoDB to give guidance in the form of free cash flow, maybe we could figure out if this stock is a buy!

Should you invest $1,000 in MongoDB right now?

Before you buy stock in MongoDB, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MongoDB wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $869,841!*

Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MongoDB. The Motley Fool has a disclosure policy.