MongoDB (MDB, Financial) stock rose by 13.76% today following its impressive fiscal Q1 2026 earnings announcement. The company reported $549 million in sales and an adjusted EPS of $1, surpassing analyst expectations of $0.66 per share on $527.5 million in sales.
MongoDB (MDB, Financial) showed a notable 22% year-over-year increase in revenue. While its gross profit margin saw a slight dip from 73% to 71%, the company’s financial health remains robust. Despite a GAAP loss per share of $0.46 for the quarter, this figure shows a marked improvement from the previous year's Q1 GAAP loss of $1.10 per share. Furthermore, MongoDB's free cash flow experienced a significant 74% rise year-over-year, reaching $105.9 million.
Over the past 12 months, MongoDB has generated nearly $166 million in free cash flow, setting a new company record. The company is bullish on its future prospects, projecting next quarter's sales to exceed analyst expectations with estimates ranging from $548 million to $553 million, and more than $2.25 billion for the year in total sales. Additionally, non-GAAP earnings forecasts have also exceeded market predictions.
From a valuation perspective, MongoDB (MDB, Financial) is currently priced at $227.21. Despite having no available P/E ratio, MongoDB is trading with a price-to-book ratio of 6.57 and an EV/Revenue ratio of 6.96. The company’s market capitalization stands at approximately $18.57 billion, highlighting its significant size in the Software - Infrastructure subindustry within the Technology sector.
Notably, MongoDB (MDB, Financial) is considered "Significantly Undervalued" based on its GF Value of $400.39. This valuation suggests a potential for substantial stock price appreciation. Additionally, the company has received accolades for its "Strong Financial Strength" and an Altman Z-score of 15.65, indicating solid financial stability and a low risk of insolvency.
However, investors should be aware of insider selling activity with five transactions totaling 22,203 shares in the past three months. Despite these sales, the overall sentiment around MongoDB remains optimistic, driven by its robust growth trajectory and expanding free cash flow.
In conclusion, while there are warning signs related to slowing revenue growth and insider selling, MongoDB (MDB, Financial) continues to showcase strong financial health and profitability potential, underscoring its promise as a valuable addition to any growth-focused investment portfolio.
