Looking statements, including statements related to our market and future growth opportunities, our opportunity to win new business, our expectations regarding. Atlas consumption growth, the impact of non-Atlas business, and multi-year license revenue. The long term opportunity of AI, our financial guidance and underlying assumptions, and our. Please refer to the tables in the earnings release on the Investor Relations portion of our website for a reconciliation of these measures to the most directly comparable GAAP financial measure.
During our Dot Local conference, we'll spend the day discussing the investments we're making to drive durable growth and margin expansion and our view of the future. We generated revenue of $591 million, up 24% year-over-year and above the high end of our guidance. We delivered non-GAAP operating income of $87 million for a 15% non-GAAP operating margin, and we ended the quarter with over 59,900 customers. Atlas performance was strong, accelerating to 29% year-over-year growth, up from 26% in Q1.
At the same time, we significantly outperformed on operating margin, demonstrating that we can drive durable revenue growth while expanding profitably. With Atlas, Agibank gained a resilient, flexible system that handled rising demand and supported new services, delivering nearly five times better performance and 90% lower costs, all with no outages. They now rely on Atlas to handle over 1 billion vectors and expect 10x growth in data usage by next year. I'll begin with a detailed review of our second quarter results and then finish with our outlook for the third quarter and fiscal year 2026.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year FY2026 revenue | FY2026 | raised by $70 million (including $38 million Q2 outperformance) (raised) |
| Operating margin (high end) | FY2026 | raised by 150 basis points (raised) |
| Atlas growth (second half) | H2 FY2026 | mid-20s % growth implied |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +24% | Strong broad-based demand, especially in larger U.S. customers, and above the high end of guidance. |
| Atlas revenue | +29% | Strong consumption consistent with last year's rates, a strong start to consumption in May, and broad-based strength especially in larger U.S. customers. |
| Non-Atlas ARR | +7% | Continued success selling incremental workloads into the existing EA customer base. |
| Operating margin | 15% vs 11% | Benefited mainly from revenue outperformance. |
| Net AR expansion rate | ~119% | Consistent with recent quarters. |
| $100K+ ARR customers | +17% | 2,564 customers with at least $100,000 in ARR. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Atlas consumption | 26% growth in Q1 | 29% growth in Q2, accelerating | Improving |
| Move up-market / higher-quality workloads | go-to-market reallocation to enterprise started in H2 last year | acquired workloads growing faster, bigger, and for longer than past workloads | Improving |
| AI as a growth driver | thousands of AI-native customers being added | AI cohort still not material to growth; enterprise AI adoption real but early | Stable/early |
| Multi-year deals | large multi-year deals in fiscal 2025 | more multi-year deals than expected, more widespread and not large; about half the non-Atlas outperformance | Improving |
| Self-serve channel | ongoing optimization | accelerating despite move up-market, driven by data-driven experiments and SQL developer outreach | Improving |