Shares of MongoDB Inc. (MDB) surged 5.01% in pre-market trading on Friday, following the release of its fiscal first-quarter earnings report that significantly exceeded Wall Street expectations.

The document database company reported adjusted earnings per share of $1.32 for the quarter ended April 30, beating the analyst consensus estimate of $1.19. Revenue grew 25% year-over-year to $687.6 million, also surpassing market forecasts. More importantly, MongoDB raised its guidance for both the current quarter and the full fiscal year, with the new ranges well above previous analyst projections.

The strong results were primarily driven by robust demand for its multi-cloud database service, Atlas. Management also noted that while established customers in sectors like finance and technology remain key growth drivers, its AI-related business is gaining momentum as enterprises choose MongoDB's platform to power agentic AI applications. The earnings beat and optimistic outlook have eased investor concerns about AI disruption in the software sector, leading to a wave of analyst upgrades and revised price targets from firms including Barclays, Piper Sandler, Citi, and Bank of America.