It’s time to step to the sidelines on MongoDB after its latest earnings report suggested a disappointing outlook for the stock, according to Wells Fargo. Analyst Andrew Nowinski downgraded the database software maker to equal weight from overweight, and lowered his price target, after MongoDB issued weaker-than-expected full year guidance because of slow growth in its Atlas cloud-based database service. MongoDB forecasted adjusted earnings per share of $2.44 to $2.62 and revenue of $2.24 billion to $2.28 billion for fiscal 2026, implying a revenue growth rate of 12.7% that is the slowest for the company going back to its public debut in 2017. MDB YTD mountain MongoDB “With a smaller pool of multi-year deals, we believe it will be difficult to significantly outperform expectations in FY26 and therefore expect shares to remain range-bound,” he wrote MongoDB did beat expectations on the top and bottom lines in its latest report, posting adjusted earnings per share of $1.28, while analysts polled by LSEG expected a profit of 66 cents per share. Revenue of $548.4 million also exceeded the expected $519.6 million. Nevertheless, the analyst’s $225 price target, cut sharply from $365 previously, implies more than 14% downside from Wednesday’s close of $264.13. The stock is down more than 18% already in the Thursday premarket. MongoDB has plunged over the past 12 months, down about 35%, while outperforming in 2025, up more than 13%. Still, the analyst said he expects Atlas core consumption trends will eventually stabilize, while contributions from generative artificial intelligence will also tick up again. — Jordan Novet contributed to this report.
