MongoDB (NASDAQ:MDB) surges 17% premarket after beating Q1 fiscal 2026 estimates and raising guidance amid Atlas momentum.

Analysts at Wedbush retained their Outperform rating and $300 price target, noting that Atlas monetization is just getting started as the cloud database provider posted revenue upside of roughly 6% driven by a 7% beat in Atlas.

Atlas revenue reached $395 million, up 1.3% quarter-over-quarter versus flat to down guidance, while non-Atlas revenue of $136 million exceeded the implied $132 million forecast. Net Atlas customer additions of 2,700well above the historical 1,5002,000 rangeunderscore accelerating enterprise demand for next-gen database solutions.

Wedbush's Daniel Ives pointed to MongoDB's Voyage AI acquisition as a catalyst for wider AI adoption, while noting that new CFO Mike Berry's May 27 appointment should be seamless and support efforts to sharpen operating efficiency.

BofA Securities' Brad Sills maintained a Buy rating and $275 target after calling the quarter strong, attributing upside to stabilizing usage and easing unused credit headwinds. Morgan Stanley's Sanjit Singh bumped his price target to $255 from $235, citing Atlas growth accelerating to 26% year-over-year, up from 24% in Q4, paired with record customer additions and prudent guidance.

Despite a tougher macro environment, MongoDB's mix shift toward cloud and AI-driven services positions it to outpace competition like Postgres in the $120 billion unstructured data management market.

Investors care because MongoDB's stronger growth trajectory and raised outlook suggest upside potential, even as peers face margin pressures. Investors will watch Q2 Atlas growth and updated full-year guidance when MongoDB reports next quarter.

This article first appeared on GuruFocus.