This article first appeared on GuruFocus.

MongoDB (NASDAQ:MDB) surged about 25% on early Tuesday after the database software firm posted stronger-than-expected third-quarter results and lifted its full-year outlook.

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Revenue for the quarter ended Oct. 31 came in at $628.3 million, up 19% from a year earlier, helped by continued growth in Atlas, its cloud-based database service. Atlas revenue rose 30% year over year and accounted for about three-quarters of total sales.

MongoDB reported a net loss of $2.0 million, or $0.02 a share, narrower than the prior year. On an adjusted basis, earnings reached $1.32 a share, reflecting gains in operating performance.

For the fourth quarter, the company forecast revenue of $665 million to $670 million, above Wall Street expectations. It also projected adjusted earnings of $1.44 to $1.48 a share.

MongoDB raised its fiscal 2026 revenue outlook to $2.43 billion to $2.44 billion, citing steady demand for cloud data platforms and increased adoption of AI-related workloads.

The company ended the quarter with $2.3 billion in cash and investments after generating strong operating cash flow.