Couchbase, Inc. (BASE) shares are soaring 5.01% in Wednesday's intraday trading session following the release of strong Q1 fiscal 2026 results and positive analyst reactions. The database software company reported robust growth in key metrics and raised its full-year guidance, prompting several analysts to increase their price targets.
Couchbase reported a 20% year-over-year increase in Annual Recurring Revenue (ARR) to $252 million and a 12% growth in subscription revenue. The company's non-GAAP gross margin remained strong at 89%. Notably, Couchbase's cloud-based database-as-a-service offering, Capella, showed significant momentum with an 84% year-over-year increase in ARR.
Following the results, several analysts raised their price targets for Couchbase. Morgan Stanley increased its target to $19 from $18, UBS raised its target to $20 from $18, and Wedbush maintained an outperform rating with a $26 price target. Analysts cited the company's growing enterprise customer base, strong Capella momentum, and raised fiscal 2026 guidance as key drivers for their positive outlook. The average analyst price target now stands at $21.56, reflecting confidence in Couchbase's growth trajectory and market position in the database software sector.
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