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TEAM · Analysis updated Nov 6, 2026, 11:45 AM ET
Why is Atlassian Corporation (TEAM) stock moving?
Atlassian reported a strong fiscal Q1 2027. Revenue rose 24% to $1.77B and non-GAAP EPS was $1.65 against about $1.44 expected. Cloud revenue grew 31%, subscription ARR grew 23%, RPO grew 44%, and free cash flow was $463M (26% margin). GAAP operating margin turned positive at 11%. The market focused on guidance instead. Management targets about 13.75% revenue growth for fiscal 2027, well below the 24% just delivered, and expects Data Center revenue to fall about 16%. The shares fell about 15% to roughly $155 on Nov 6, after closing at $183.29 on Nov 5. They had already dropped from about $220 on Oct 28 to $183 before the report, on rising volume. That suggests pre-earnings worries about software and AI were already weighing on the stock. Analysts remain constructive. Piper Sandler raised its target to $190 and the average target is about $230, well above the current price. Risks include the growth deceleration, high beta, heavy insider selling and a stock that rallied about 72% over three months before this reversal. The stock is likely to stay volatile in the near term, with fundamentals and sentiment pulling in opposite directions.
News behind the analysis
- Why Is Atlassian Stock Sinking Friday?Shares fell about 14% premarket after Atlassian guided to slower subscription growth and a steeper Data Center decline for fiscal 2027. The guide overshadowed a strong Q1 and a higher full-year revenue forecast.
- Atlassian Shares Tumble Despite Strong Q1 Report: DetailsQ1 adjusted EPS was $1.65 against a $1.44 estimate, and revenue was $1.77B against a $1.71B estimate. Cloud revenue rose 31% and subscription ARR rose 23%. The stock fell about 18% in extended trading.
- Atlassian Q1 2027: Strong Beat, But the Growth Guide StingsManagement targets about 13.75% revenue growth for fiscal 2027, down from 24% in Q1. Data Center revenue is expected to fall about 16% for the year.
- Atlassian: First Quarter 2027 Earnings releaseRevenue rose 24% to $1,772M. GAAP operating margin was 11% and non-GAAP margin was 32%. Free cash flow was $463M.
- Atlassian Announces First Quarter Fiscal Year 2027 ResultsThe official release shows GAAP operating income of $189M, against a $96M loss a year earlier. Non-GAAP EPS was $1.65, up from $1.04.
- Atlassian Corp Reports Q1 FY2027 Earnings: GAAP EPS of $0.35 Surpasses EstimatesData Center revenue grew 5% to $390.7M. The company expects it to decline about 16% for the full year as customers move to Cloud. This source puts the revenue miss against a higher estimate than other sources do.
- Atlassian Q1 2027 Earnings Call: Revenue Jumps 24% as RPO Surges 44%, but Cloud Growth Set to DecelerateFree cash flow rose 304% to $463M and RPO rose 44% to $4.7B. Cloud growth is expected to slow.
- TEAM Q1 Earnings Beat Estimates on Cloud Growth and Margin GainsNon-GAAP EPS of $1.65 rose 58.7% year over year. It beat the Zacks consensus by 18.7%.
- Atlassian Corporation (TEAM) stock price, news, quote and historyShares traded near $154.64, down 15.6%, in Friday's session. Piper Sandler kept its Overweight rating and raised its target from $175 to $190. The average analyst target is about $230.
- Atlassian (TEAM) Stock Price & NewsShares closed at $189.88 on Nov 4. They were down 13.7% over one week and up 72% over three months. Beta is 1.72.