MongoDB (NASDAQ:MDB) shares nosedived around 20% intra-day today, as investors reacted to the company’s disappointing full-year outlook, which overshadowed an otherwise strong fourth-quarter earnings report.
For the quarter, MongoDB delivered impressive results, posting adjusted earnings per share (EPS) of $1.28 on revenue of $548.4 million, well above analyst expectations of $0.67 EPS and $519.8 million in revenue.
The company’s guidance for the first quarter of fiscal 2026 came in slightly ahead of estimates. MongoDB anticipates adjusted EPS between $0.63 and $0.67 on revenue ranging from $524 million to $529 million, exceeding Wall Street’s forecast of $0.63 EPS on $526.1 million in revenue.
However, the full-year outlook dampened investor enthusiasm. MongoDB projected fiscal 2026 adjusted EPS between $2.44 and $2.62, falling significantly short of the consensus estimate of $3.39. Revenue expectations of $2.24 billion to $2.28 billion also missed projections of $2.32 billion.
A key factor weighing on the outlook is an anticipated high single-digit percentage revenue decline year-over-year, attributed to a $50 million reduction in multi-year term license revenue.