With significant hedge fund interest, MongoDB, Inc. (NASDAQ:MDB) secures a spot on our list of 10 Best SaaS Stocks to Buy According to Hedge Funds. In the first quarter of 2026, 74 hedge funds held bullish positions in the stock, representing $2.58 billion in added value.
Copyright: welcomia / 123RF Stock Photo
On May 28, 2026, MongoDB, Inc. (NASDAQ:MDB) reported Q1 FY2027 revenue of $687.6 million, up 25% year over year. Subscription revenue was $666.1 million, also up 25%, while services revenue rose 22% to $21.5 million. Non-GAAP EPS was $1.32, compared to $1.00 in the year-ago period.
Meanwhile, non-GAAP operating income was $123.2 million, up from $87.4 million a year earlier. Free cash flow reached $197.5 million, nearly double the $105.9 million generated in the prior-year quarter. RPO grew 88% year over year to $1.46 billion, and current RPO increased 69% to $766.3 million. MongoDB, Inc. (NASDAQ:MDB) ended the quarter with $2.4 billion in cash, cash equivalents, short-term investments and restricted cash.
CEO CJ Desai said MongoDB, Inc. (NASDAQ:MDB) continues to show strong profitability while driving revenue growth, citing momentum in enterprise use cases and emerging AI opportunities. MongoDB also acquired Clarity Business Solutions to strengthen its US federal vertical and formalized a strategic partnership with LangChain to position MongoDB Atlas as a backend for AI production agents.
Looking ahead, MongoDB, Inc. (NASDAQ:MDB) expects second-quarter revenue of $729 million to $734 million and non-GAAP earnings per share of $1.58 to $1.61. Full-year fiscal 2027 revenue guidance was raised to between $2.92 billion and $2.96 billion, with non-GAAP earnings per share of $5.95 to $6.14.
On May 29, 2026, UBS raised its price target on MongoDB, Inc. (NASDAQ:MDB) to $350 from $275 and maintained a “Neutral” rating, rating the quarter largely in-line and noting that results were primarily driven by its core business rather than early-stage AI demand.
MongoDB, Inc. (NASDAQ:MDB) is a data platform company for developers. Its platform combines a globally distributed operational database with a set of data services that help development teams manage an increasing range of application requirements.
While we recognize MDB’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock. READ NEXT: 33 stocks that should double in 3 years and 15 stocks that will make you rich in 10 years. Disclosure: None. Follow Insider Monkey on Google News.