Atlassian (NASDAQ:TEAM) Issues Earnings Results

Atlassian (NASDAQ:TEAM) released its quarterly earnings results on Thursday. The technology company reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.26, FiscalAI reports. The business had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.71 billion. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The company’s quarterly revenue was up 23.7% on a year-over-year basis. During the same period last year, the firm earned $1.04 earnings per share.

Here are the key takeaways from Atlassian’s conference call:

• Atlassian reported a strong start to FY2027: revenue rose 24% to $1.8 billion, cloud revenue grew 31%, and free cash flow increased 304% year over year to $463 million, a 26% margin.
• Enterprise demand and customer commitments strengthened, with remaining performance obligations up 44% to $4.7 billion and customers spending more than $1 million annually growing well over 30%. The Teamwork Collection reached more than 3,000 customers, while the Service Collection surpassed 70,000 customers and continued to grow ARR by more than 30%.
• Management highlighted growing AI adoption and positioned the Teamwork Graph and Rovo as drivers of customer expansion: more than 87% of enterprise cloud customers use Rovo, and deep Rovo adopters grow ARR more than twice as fast as light users. The company said its main AI monetization path is through product collections and expanded usage, not near-term usage-based pricing revenue.
• Management’s outlook reflects expected cloud growth deceleration, tougher comparisons in the second half, and uncertainty around macroeconomic and geopolitical conditions. Hybrid migration deals shifted some revenue toward Data Center and away from cloud in the quarter; management said usage-based pricing is not expected to generate meaningful revenue in FY2027.

Atlassian Stock Performance

NASDAQ TEAM opened at $164.62 on Friday. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.93. Atlassian has a twelve month low of $56.01 and a twelve month high of $229.96. The business has a 50-day moving average price of $196.69 and a 200-day moving average price of $119.39. The firm has a market cap of $41.67 billion, a price-to-earnings ratio of -825.30, a price-to-earnings-growth ratio of 20.25 and a beta of 1.16.

Atlassian News Roundup

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: For fiscal Q1 2027, Atlassian reported earnings of $1.65 per share, topping the $1.39 consensus, and revenue of $1.77 billion versus estimates of $1.71 billion. Revenue rose 23.7% year over year. The company also cited 44% growth in remaining performance obligations and a sevenfold increase in Teamwork Collection customers year over year. Atlassian Q1 fiscal 2027 results
• Positive Sentiment: Analyst views remained constructive: BTIG lowered its price target to $240 but kept a Buy rating, while Piper Sandler raised its target to $190 and maintained Overweight. BTIG Research ratings Piper Sandler ratings
• Neutral Sentiment: Management’s discussion of cloud-migration progress and AI monetization is a key focus for investors assessing whether new AI capabilities can translate into durable growth and revenue. Atlassian cloud migration and AI strategy
• Negative Sentiment: Despite beating quarterly estimates and issuing guidance described as above consensus, Atlassian’s stock dropped sharply after the report. Coverage pointed to concerns about the growth outlook and the possibility that strong results were not enough to meet elevated investor expectations. Atlassian Q3 CY2026 results and market reaction

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Citigroup upped their price objective on Atlassian from $225.00 to $245.00 and gave the stock a “buy” rating in a research note on Tuesday, October 20th. Morgan Stanley boosted their price target on Atlassian from $120.00 to $180.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Truist Financial upped their price target on Atlassian from $185.00 to $250.00 and gave the stock a “buy” rating in a research report on Wednesday, October 21st. Mizuho upped their price target on Atlassian from $215.00 to $235.00 and gave the stock an “outperform” rating in a research report on Thursday, October 15th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $200.00 price objective on shares of Atlassian in a research note on Friday, August 7th. Twenty-four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $217.56.

Insider Activity at Atlassian

In other Atlassian news, CAO Gene Liu sold 337 shares of the stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $210.00, for a total transaction of $70,770.00. Following the completion of the sale, the chief accounting officer directly owned 55,531 shares of the company’s stock, valued at $11,661,510. This trade represents a 0.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO James Chuong sold 9,054 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the sale, the chief financial officer directly owned 279,218 shares of the company’s stock, valued at approximately $48,151,144.10. This trade represents a 3.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 22,475 shares of company stock valued at $3,822,643. 37.63% of the stock is owned by company insiders.

Atlassian Company Profile

Atlassian Corporation develops collaboration, project-management and workflow software for technology, business and service teams. Its products are designed to help organizations plan projects, manage software development, coordinate work and share knowledge across departments.

Its product portfolio includes Jira for project and issue tracking, Confluence for team collaboration and knowledge management, Jira Service Management for IT and enterprise service workflows, Trello for organizing tasks and projects, Loom for video messaging and screen recording, and Bitbucket for source-code management and collaboration.