Mongodb Inc (NASDAQ:MDB) stock plunges 21.06% (As on March 3, 11:26:04 AM UTC-4, Source: Google Finance) after the company crushed expectations in its latest financial results, only to follow up with miserable guidance for the current quarter. The soft guidance triggered further jitters among investors worried that the rise of artificial intelligence might upend the business models of software companies. MongoDB’s subscription revenue increased 27%, while services revenue gained 26%. The company recorded net income of just $15.5 million in the quarter, down slightly from a profit of $15.8 million in the year-ago period. The company blamed that on higher marketing and research and development costs. Non-GAAP income from operations was $158.8 million, compared to non-GAAP income from operations of $112.5 million in the year-ago period. As of January 31, 2026, MongoDB had $2.4 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended January 31, 2026, MongoDB generated $179.6 million of cash from operations, compared to $50.5 million of cash from operations in the year-ago period. MongoDB used $1.1 million of cash in capital expenditures and used $1.7 million of cash in principal payments of finance leases, leading to free cash flow of $176.7 million, compared to free cash flow of $22.9 million in the year-ago period.

Further, MongoDB introduced a set of new AI capabilities, including five new embedding models from Voyage AI by MongoDB (including the Voyage 4 series), Automated Embedding for MongoDB Community Vector Search, and new embedding and reranking AI model APIs for Atlas. Additionally, MongoDB launched an AI-powered data operations assistant for MongoDB Compass and Atlas Data Explorer.

MDB in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.65, beating the analysts’ estimates for the adjusted earnings per share of $1.48. The company had reported the adjusted revenue growth of 27 percent to $695.1 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $670.1 million. Non-GAAP gross profit was $524.7 million, representing a 75% non-GAAP gross margin, compared to a non-GAAP gross margin of 75% in the year-ago period.

For the current quarter, MongoDB forecast earnings of $1.15 to $1.19, trailing the Street’s forecast of $1.20. It also called for revenue of between $659 million and $664 million, with the midpoint just about in line with the $662.5 million consensus estimate.

MongoDB called for fiscal 2027 earnings of between $5.75 and $5.93 per share on sales of $2.86 billion to $2.9 billion versus the Street’s consensus of $5.69 per share in earnings and $2.9 billion in sales.