Atlassian (NASDAQ:TEAM) Issues Earnings Results

06 Nov 2026, 00:57 by Kim Johansen · The Markets Daily

Atlassian (NASDAQ:TEAM – Get Free Report) posted its earnings results on Thursday. The technology company reported $1.65 EPS for the quarter, topping the consensus estimate of $1.39 by $0.26, FiscalAI reports. The company had revenue of $1.77 billion during 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%.

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

TEAM stock traded down $6.59 during mid-day trading on Thursday, reaching $183.29. 5,683,762 shares of the stock traded hands, compared to its average volume of 5,493,521. 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 52 week low of $56.01 and a 52 week high of $229.96. The business has a 50-day moving average of $196.69 and a two-hundred day moving average of $119.39. The firm has a market capitalization of $46.40 billion, a PE ratio of -964.68, a P/E/G ratio of 20.37 and a beta of 1.16.

Analyst Upgrades and Downgrades

TEAM has been the subject of a number of analyst reports. Mizuho boosted 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. Raymond James Financial set a $180.00 price objective on Atlassian in a research note on Friday, August 7th. Oppenheimer boosted their target price on Atlassian from $200.00 to $275.00 and gave the stock an “outperform” rating in a report on Thursday, October 22nd. Cantor Fitzgerald upped their target price on Atlassian from $220.00 to $252.00 and gave the stock an “overweight” rating in a research report on Monday. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $200.00 price target on shares of Atlassian in a report on Friday, August 7th. Twenty-three research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Atlassian currently has a consensus rating of “Moderate Buy” and a consensus price target of $217.76.

Get Our Latest Report on Atlassian

Insider Transactions at Atlassian

In related news, CRO Brian Duffy sold 7,617 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $163.00, for a total transaction of $1,241,571.00. Following the completion of the transaction, the executive owned 220,074 shares of the company’s stock, valued at approximately $35,872,062. The trade was a 3.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Gene Liu sold 1,125 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $175.00, for a total value of $196,875.00. Following the sale, the chief accounting officer owned 56,807 shares of the company’s stock, valued at approximately $9,941,225. The trade was a 1.94% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 22,475 shares of company stock worth $3,822,643. Company insiders own 37.63% of the company’s stock.

Trending Headlines about Atlassian

Here are the key news stories impacting Atlassian this week:

Positive Sentiment: Atlassian posted earnings of $1.65 per share, above the $1.39 consensus, and revenue of $1.77 billion, ahead of the $1.71 billion estimate. The company also highlighted 44% growth in remaining performance obligations and a sevenfold year-over-year increase in Teamwork Collection customers. Atlassian Q1 results
Neutral Sentiment: Atlassian’s guidance reportedly exceeded analyst estimates, but coverage characterized the growth outlook as less compelling than investors wanted—suggesting expectations had risen after the recent run-up in the stock. Seeking Alpha report
Negative Sentiment: The market’s focus on the growth outlook overshadowed the beat: one report described the shares as dropping sharply despite higher-than-expected revenue, while another highlighted concern over the growth guide. Yahoo Finance report Growth outlook analysis

Atlassian Company Profile

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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.