MongoDB Inc. (MDB) saw its stock price plummet over 22% on Thursday during the pre-market trading session, following the company's fourth-quarter earnings report and disappointing guidance for fiscal year 2026.

For the fourth quarter of fiscal 2025, MongoDB reported better-than-expected results, with adjusted earnings per share of $1.28, surpassing the consensus estimate of $0.67. Revenue came in at $548.4 million, topping analysts' expectations of $519.8 million and representing a 20% year-over-year increase.

However, MongoDB's outlook for fiscal 2026 fell short of Wall Street's projections. The company forecast revenue in the range of $2.24 billion to $2.28 billion, missing the consensus estimate of $2.32 billion. Additionally, adjusted EPS guidance of $2.44 to $2.62 fell below the expected $3.34.

The disappointing guidance was primarily due to an anticipated $50 million headwind from fewer multi-year deals in MongoDB's non-Atlas business. The company expects its non-Atlas subscription revenue to decline in the high-single digits for the year, as customers increasingly deploy incremental workloads on its cloud database service, Atlas.

Furthermore, MongoDB is making significant investments in research and development, including the recently announced acquisition of Voyage AI, to enhance its capabilities in building trustworthy AI applications. These investments, along with anticipated headcount increases, are contributing to the lower operating margin guidance of 9.4-10.1%, down from the consensus of 13.1%.