Key Takeaways

MongoDB ( MDB ) shares tanked 22% to lead Nasdaq decliners Thursday, a day after the database software provider gave weaker-than-expected guidance as it warned of a big drop in demand for all but its top product.

The company anticipates full-year adjusted earnings per share (EPS) of $2.44 to $2.62 and revenue of $2.24 billion to $2.28 billion. Analysts surveyed by Visible Alpha were looking $3.37 and $2.32 billion, respectively. MongoDB explained that the outlook was based on the assumption that "non-Atlas revenue will decline high-single digits in percentage terms on a year-over-year basis."

CEO Dev Ittycheria said, "We expect to see stable consumption growth in Atlas, our main growth driver." Atlas produced 71% of MongoDB's revenue in the fiscal 2025 fourth quarter, rising 24% year-over-year.

The full-year forecast offset solid quarterly earnings. The company reported adjusted EPS of $1.28, nearly double the Visible Alpha estimate. Revenue rose 20% to $548.4 million, also ahead of expectations. However, deferred revenue of $334.4 million was less than anticipated.

Shares of MongoDB traded at their lowest level in two years.

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