Summary
MongoDB closed the second quarter of fiscal 2027 with revenue of $771.8 million, up 30.5% from the prior-year quarter. That is the fastest growth rate the company has reported in several years, and management credited core enterprise workloads plus early momentum with AI use cases. Year-to-date revenue of $1.46 billion rose 28.0%. Atlas revenue grew roughly 29% year over year, while Enterprise Advanced and other revenue grew roughly 36%.
Profitability turned decisively positive. Gross profit of $569.8 million was up 35.7%, and gross margin of 73.8% improved 2.8 percentage points year over year. GAAP operating income of $28.4 million marked a swing to a profit, and operating margin of 3.7% was up 14.7 percentage points. Net income of $40.9 million, or $0.50 per diluted share, also swung to a profit from a loss in the year-ago quarter. The press release notes this was the third consecutive quarter of GAAP EPS profitability. Non-GAAP operating margin of 24% rose from 15% a year earlier.
Cash generation was the standout. Operating cash flow of $141.9 million in the quarter rose 96.8%, and year-to-date operating cash flow of $343.5 million rose 88.7%. Free cash flow, which deducts capital expenditures and finance lease principal payments, was $137.6 million against $69.9 million in the year-ago period. Capital expenditures were only $2.47 million in the quarter.
Backlog and the customer base both expanded quickly. Remaining performance obligations reached $1.52 billion, up 91.3% year over year, and deferred revenue of $447.7 million was up 44.8%. Total customers passed 70,600 as of July 31, 2026, compared with more than 59,900 a year earlier, and Atlas customers topped 69,300 versus more than 58,500. Customers spending at least $100,000 in annualized recurring revenue rose to 2,999 from 2,564, and the net ARR expansion rate was 122%.
Product news centered on AI retrieval. MongoDB Search and Vector Search became generally available in Enterprise Advanced, and the company launched an Atlas Managed MCP Server that connects coding agents to live Atlas data without requiring customers to run additional infrastructure.
Guidance for the third quarter of fiscal 2027 points to non-GAAP income from operations of $152.0 million to $156.0 million and non-GAAP earnings per share of $1.57 to $1.61. For the full fiscal year 2027, non-GAAP income from operations is guided to $616.3 million to $636.3 million and non-GAAP earnings per share to $6.39 to $6.58. On a GAAP basis, management guides to a small operating loss for the third quarter and for the full year, with GAAP earnings per share near breakeven in the quarter and modestly positive for the full year.
Several risks sit alongside the strong print. Management said it expects macroeconomic headwinds on the growth rate for existing Atlas applications in the short term. Atlas was 73% of total revenue in the quarter, and the company warns gross margin may decline as Atlas hosting costs rise with that mix, though subscription gross margin improved to 77%. Services gross margin stayed deeply negative. Research and development expense rose 18%, driven in part by greater use of AI tools and higher third-party infrastructure spending. The company still carries an accumulated deficit and expects to keep incurring operating losses. During the six months ended July 31, 2026, it repurchased 666,452 shares of common stock for $200.0 million at an average price of $300.10, leaving $399.7 million authorized under the program.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2027 | Q1 FY2027 | QoQ | Q2 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $771.8M | $687.6M | +12.2% | $591.4M | +30.5% |
| Gross profit | $569.8M | $496.2M | +14.8% | $420.0M | +35.7% |
| Gross margin | 73.8% | 72.2% | +1.7 pp | 71.0% | +2.8 pp |
| Research & development | $213.9M | $200.4M | +6.7% | $181.7M | +17.7% |
| Sales & marketing | $253.1M | $249.3M | +1.5% | $244.1M | +3.7% |
| General & administrative | $74.4M | $71.2M | +4.5% | $59.5M | +25.2% |
| Total operating expenses | $541.4M | $521.0M | +3.9% | $485.3M | +11.6% |
| Operating income (loss) | $28.4M | -$24.8M | +214.5% | -$65.3M | +143.5% |
| Operating margin | 3.7% | -3.6% | +7.3 pp | -11.0% | +14.7 pp |
| Net income (loss) | $40.9M | $4.4M | +823.3% | -$47.0M | +187.0% |
| Net margin | 5.3% | 0.6% | +4.7 pp | -8.0% | +13.3 pp |
| Diluted EPS | $0.50 | $0.05 | +$0.45 | — | — |
| Customers | 70,600 | 67,700 | +4.3% | 59,900 | +17.9% |
Risks
Risk factors substantially expand AI and ML disclosure this filing, warning that competitors may incorporate AI into their products more quickly and that the rapid adoption of generative and agentic AI coding tools could change how developers design and build applications. MongoDB states that if these evolving development patterns reduce developer engagement with, or preference for, its platform or favor alternative technologies, demand for its products and services could be adversely affected.
MD&A states MongoDB expects to experience macroeconomic headwinds on the growth rate for its existing Atlas applications in the short term. Risk factors cite inflation, higher interest rates, trade policy uncertainty and geopolitical instability as factors that could cause customers to delay or reduce information technology spending, extend the sales cycle and lower revenue growth from existing customers.
New disclosure that MongoDB is increasingly deploying generative and agentic AI tools internally, including for software development and security testing, and that the pace of adoption may outpace its security, access control and governance measures. Unauthorized or unsanctioned employee use could expose MongoDB's or its customers' confidential, proprietary or personal information, including inadvertent disclosure into publicly available third-party training sets.
The sales cycle from initial evaluation to payment is generally three to nine months and can extend to more than a year for some customers, with a large portion of sales occurring toward the end of each quarter. MongoDB notes that rising inflation, interest rates and global economic uncertainty could further extend the sales cycle, increasing variability and reducing comparability of quarterly revenue.
MongoDB has entered into non-cancelable multi-year capacity commitments with third-party cloud providers that require payment irrespective of actual usage. These fixed obligations could pressure gross margin and operating results if Atlas consumption grows more slowly than expected, and are called out in MD&A as a component of operating expense and cost mix volatility.
The filing emphasizes intense competition from legacy database providers IBM, Microsoft and Oracle, and from public cloud providers AWS, Google Cloud Platform and Microsoft Azure that offer database functionality. Larger competitors can bundle competing products with cloud and other offerings, so customers may choose a bundled offering even if individual products have more limited functionality, and may also cut prices or devote greater resources to promotion.
The filing reiterates the December 2023 incident in which a previously unknown flaw in a third-party application enabled an unauthorized third party to phish and gain access to certain corporate applications, including support applications containing customer contact information and account metadata. New text warns that AI-powered tools could accelerate vulnerability discovery and lower the technical sophistication required to exploit flaws before MongoDB can remediate them, potentially requiring substantially greater resources for patching and re-validation.
MongoDB derives more than the majority of its revenue from Atlas, its usage-based database-as-a-service offering, which represented 73% of total revenue in the quarter ended July 31, 2026. Because customer usage of Atlas can vary and revenue is recognized on a consumption basis, actual results may differ from forecasts and future revenue may be less predictable due to fluctuations in renewals, expansions and usage seasonality.
MongoDB states its success depends on highly skilled personnel including senior management and engineering, professional services, sales and technology staff, and that it expects significant competition for professionals with AI and ML expertise. Failure to hire, retain or motivate key personnel could harm the business.
MongoDB is subject to a growing patchwork of data privacy and security laws, including the CCPA and similar state laws, plus emerging AI regulation such as the EU AI Act, which imposes a risk-based governance framework with heightened requirements for general purpose AI systems. The filing also notes shifting U.S. federal cybersecurity executive orders that may lead to inconsistent or fragmented requirements across agencies, complicating compliance.
SaaS KPIs
All quarters →Total Customers
MongoDB Atlas Customers
Net ARR Expansion Rate
Non-GAAP Operating Margin
Summary, forecast, risks and KPIs are extracted from MongoDB, Inc.'s SEC filings for Q2 FY2027 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.