markets

Hyunsoo Rim3/3/26

MongoDB plunges on weak Q1 guidance, despite fourth-quarter earnings beat

MongoDB is down more than 27% in premarket trading Tuesday, extending its sharp after-hours decline yesterday, after the database software company forecast lower-than-expected Q1 earnings and full-year revenue.

The company actually beat estimates for the fourth quarter (ended January 31), in which revenue rose 27% year on year to $695.1 million, and adjusted earnings came in at $1.65 per share — ahead of Wall Street estimates of $670 million and $1.48 per share, respectively. In the earnings release, CEO CJ Desai said results were driven by “continued go-to-market execution and the broad-based demand we are seeing across our product lines.”

Yet the company’s outlook for Q1 has disappointed investors, with adjusted earnings per share of $1.15 to $1.19 below analyst estimates of $1.20. Its revenue forecast, meanwhile, sits at $659 million to $664 million, the midpoint of which fell below the $662 million that had been penciled in. Full-year revenue guidance of $2.86 billion to $2.9 billion also fell slightly below consensus estimates, though EPS guidance of $5.75 to $5.93 came in ahead of the $5.69 forecast.

Alongside its earnings report, MongoDB announced a leadership overhaul, including the departure of its president of field operations, Cedric Pech, and its chief revenue officer, Paul Capombassis. The company also announced the appointment of Erica Volini as the new chief customer officer.

MongoDB’s “NoSQL database” is considered a more flexible, modern format than traditional table-based databases, allowing developers to store data more easily. But with fears growing that established software companies may lose their edge to rising agentic AI, MongoDB’s shares had already fallen roughly 23% this year before this morning’s slide — and are now down about 44% year to date.

Alongside its earnings report, MongoDB announced a leadership overhaul, including the departure of its president of field operations, Cedric Pech, and its chief revenue officer, Paul Capombassis. The company also announced the appointment of Erica Volini as the new chief customer officer.

MongoDB’s “NoSQL database” is considered a more flexible, modern format than traditional table-based databases, allowing developers to store data more easily. But with fears growing that established software companies may lose their edge to rising agentic AI, MongoDB’s shares had already fallen roughly 23% this year before this morning’s slide — and are now down about 44% year to date.

More Markets

See all Markets

Tasha Matsumoto

Stocks tumble amid AI sell-off as a blowout jobs report dampens hope of a rate cut this year

The S&P 500 broke its streak of nine consecutive weekly gains, while the Nasdaq 100 had its worst day since April 2025.

Yellowstone: America's First National Park

Dickens, Great Expectations, He said, Aha! would you?

Tech tumbles as momentum stocks run into a blowout jobs report and a wave of profit-taking

The AI trade is under some pressure, taking prices back like... a few days. President Donald Trump is not a fan of the price action.

David Crowther10h

Trump Administration Considers Reclassifying Marijuana As A Less Dangerous Drug

Trulieve to list on NYSE, a first for US cannabis sector

More may be on the way: several other US cannabis companies have announced reverse stock splits with the intention of listing on a major exchange.

J. Edward Moreno11h

markets

Helena Cheng12h

Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

EPS of $1.69 vs. the $1.68 expected.
Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemon’s geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected “halo effect” across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top-line performance,” Frank said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemon’s valuation has already been steadily compressing for years. While it was once one of retail’s richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi O’Neill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brand’s growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

markets

US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.

©2026 Sherwood Media, LLC