MongoDB (NASDAQ:MDB) shares plummeted 23.96% to $200.86 as of 13:27 ET, after the database solutions provider issued a weaker-than-expected outlook for fiscal year 2026. The stock's sharp drop follows concerns over slowing growth in non-Atlas revenue, which weighed heavily on investor sentiment.
Atlas, the company's fully managed cloud database, accounted for 71% of revenue in Q4 FY25, but MongoDB warned that non-Atlas revenue will be a headwind in FY26. CEO Dev Ittycheria stated that fewer multiyear deals and a shift toward Atlas deployments are impacting growth.
Despite the sell-off, financial firms maintained positive ratings but slashed price targets. Piper Sandler kept an Overweight rating but cut its target to $280 from $425, citing uncertainty in non-Atlas revenue. Needham lowered its target to $270 from $415, while Wedbush trimmed its target to $300 from $360.
With MDB now down nearly 24%, the market remains cautious on the company's near-term growth potential.
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