MongoDB shares cratered more than 20% after the database software maker shared weak guidance that signaled a slowdown in growth.

For the fiscal 2026 year, the company said it expects adjusted earnings to range between $2.44 to $2.62 per share and revenue of $2.24 billion to $2.28. Analysts were expecting EPS of $3.34 and $2.32 billion in revenue.

The weak guidance stems from slower growth in the company’s Atlas cloud-based database service. The revenue projection would imply 12.7% growth, the slowest for the company going back to its 2017 stock market debut.

Finance chief Srdjan Tanjga said during an earnings call that the company is seeing slower-than-expected growth in new applications harnessing its Atlas cloud-based database service. However, MongoDB is beefing up hiring and going after deals with larger companies.

For the fiscal first quarter, MongoDB forecasted 63 cents to 67 cents in adjusted earnings per share on $524 million to $529 million in revenue. Analysts polled by LSEG had expected EPS of 62 cents and revenue of $526.8 million.

Citing MongoDB’s weak outlook and slowdown in growth, Wells Fargo analyst Andrew Nowinski downgraded shares to equal weight and lowered his price target.

“With a smaller pool of multi-year deals, we believe it will be difficult to significantly outperform expectations in FY26 and therefore expect shares to remain range-bound,” he wrote.

Read more of Nowinski’s analysis here.

MongoDB’s outlook offset stronger-than-expected fourth-quarter earnings. The company reported earnings of $1.28 per share, excluding items, on $548 million in revenue. Analysts polled by LSEG had anticipated EPS of 66 cents and $520 million in sales. Revenues rose 20% from a year ago.

MongoDB gained 1,900 customers in the quarter, reflecting a total of 54,500.

— CNBC’s Jordan Novet contributed reporting.