MongoDB's (MDB) outlook remains encouraging amid strengthening traction among AI-native customers and continued momentum in Atlas, its cloud database service, following fiscal first-quarter results that beat estimates and an increase in full-year guidance, RBC Capital Markets said Thursday in a report.

Atlas revenue grew 29.4%, marking the fourth straight quarter of growth above 29%, and management said the service has become more predictable as it has scaled, making it less sensitive to swings from individual customers or segments, the report said.

Management guided to Atlas growth of almost 26% in Q2 and 23% to 25% in fiscal 2027, up from the prior outlook of 21% to 23%, RBC said. MongoDB also projected mid-single-digit fiscal 2027 growth for the Enterprise Advanced division and other on-premise products, implying roughly flat performance in H2 due to tougher comparisons, the report said.

RBC maintained its outperform rating on MongoDB stock and its $395 price target.

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