MongoDB's (MDB) fiscal Q3 financial results exceeded investor expectations, driven by Atlas acceleration, margin expansion, and upward guidance that reinforced confidence in the company's durable growth story, RBC Capital Markets analysts said in a Monday note.

The company reported fiscal Q3 non-GAAP earnings late Monday of $1.32 per diluted share, above the $0.81 expected by analysts surveyed by FactSet. The company also raised full-year EPS guidance to $4.76 to $4.80 from $3.64 to $3.73. Analysts polled by FactSet expect $3.77.

The company's execution remains strong under new Chief Executive CJ Desai, who emphasized its expanding role as a unified data platform for mission-critical and artificial intelligence workloads, RBC said.

There is early adoption of MongoDB among AI-native startups and enterprises developing AI agents and Retrieval-Augmented Generation use cases, analysts said.

RBC increased its price target on the stock to $450 from $405 and retained an outperform rating.

Shares of the company were up over 23% in recent Tuesday trading.

Price: 406.48, Change: +77.61, Percent Change: +23.60