By Kit Norton

Shares of MongoDB surged late Thursday after the document database company surpassed Wall Street's expectations with its fiscal first-quarter earnings report and raised its full-fiscal year profit outlook.

It was the latest sign that investor fears that artificial intelligence will completely disrupt the software sector appear to be diminishing

MongoDB stock gained 17% in after-hours trade after ending regular trading up 11% to $325.68 on Thursday. Since bottoming on April 10, MongoDB stock has advanced 44%. However, shares remain down 22% this year.

MongoDB posted adjusted earnings of $1.32 a share for the quarter ended April 30, compared with $1.00 a share a year ago and above Wall Street's $1.19 a share estimate. Revenue grew 25% to $687.6 million, beating the analyst consensus call for $664.5 million, according to FactSet.

For the fiscal second quarter, MongoDB expects profit ranging from $1.58 a share to $1.61 a share with revenue between $729 million and $734 million. Analysts expect earnings of $1.29 a share on sales totaling $701 million in the fiscal second quarter.

MongoDB also raised its full-fiscal year profit outlook, forecasting earnings of $5.95 a share to $6.14 a share with sales between $2.92 billion and $2.96 billion. That's compared with MongoDB's previous profit guidance of $5.75 a share to $5.93 a share. Analysts forecast full-fiscal year profit of $5.92 a share with revenue coming in at $2.9 billion, according to FactSet.

The company said its decision to raise its full-year outlook was primarily driven by "strength" in its multi-cloud database service, called Atlas.

"We delivered better-than-expected first quarter results, as our go-to-market teams continue to execute well and capitalize on strong end-market demand for the MongoDB platform across enterprise use cases and emerging AI opportunities," CEO CJ Desai said in the earnings release.

MongoDB is a document database company that has its own AI capabilities along with Atlas. Three months ago, Desai said that "while AI is not yet a material driver to our results, we are encouraged by the growth we are seeing with customers leveraging our AI capabilities."

MongoDB earnings and investors' response come amid a slew of solid financials from software companies.

Generally, software stocks appear to be recovering after the prolonged AI-driven selloff. The iShares Expanded Tech-Software Sector ETF has gained 28% since April 10, and is trading at its highest level since January. However, the software ETF remains down 10% in 2026.

Write to Kit Norton at kit.norton@barrons.com

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May 28, 2026 17:02 ET (21:02 GMT)

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