Couchbase (BASE) is benefiting from larger enterprise customers and notable momentum in its Capella offering, its cloud-based database-as-a-service, Wedbush said in a note on Wednesday.

Capella continues to show significant growth, with Annual Recurring Revenue from the service increasing 84% year over year, showing strong customer adoption and expansion, especially among strategic accounts, according to the note.

The firm said the company's non-GAAP gross margin exceeded expectations, reflecting strength in its enterprise model despite the cost impact of its hosted software-as-a-service offerings.

Wedbush said that the company raised its fiscal 2026 guidance for total revenue and ARR, indicating growing confidence in its ability to expand within strategic enterprise accounts and accelerate Capella migrations.

The firm maintains an outperform rating on Couchbase's stock with a $26 price target.

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