MongoDB stock falls 12% in after hours despite strong Q2 earnings

MongoDB reported total revenue of $771.8 million for fiscal Q2 2027, representing 30% growth compared to the same period last year. Subscription revenue came in at $747.1 million, up 31% year-over-year. The company’s cloud-hosted Atlas service grew approximately 29%. Enterprise Advanced and other revenues jumped 36%. MongoDB posted GAAP net income of $40.9 million, or $0.50 per diluted share. On a non-GAAP basis, the company earned $162.6 million, translating to $1.90 per share. The non-GAAP operating margin hit 24%, a significant leap from the 15% margin recorded a year ago. Free cash flow nearly doubled year-over-year, reaching $137.6 million. The after-hours drop of more than 12% fits a pattern that has become almost ritualistic in the tech sector. Companies with elevated valuations face a peculiar burden: it’s not enough to beat estimates, you have to beat them by enough to justify a premium multiple. MongoDB raised its full-year fiscal 2027 guidance, citing expected strength from Atlas and growing traction with AI-related workloads. Management highlighted the strategic positioning of MongoDB’s unified data platform in cloud and AI environments. The second half of fiscal 2027 i...