Atlassian (NASDAQ:TEAM) Announces Quarterly Earnings Results

Atlassian (NASDAQ:TEAM) announced 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. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The firm had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.71 billion. During the same period last year, the company posted $1.04 EPS. The business’s quarterly revenue was up 23.7% on a year-over-year basis.

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 traded down $6.59 on Thursday, hitting $183.29. 5,683,762 shares of the stock were exchanged, compared to its average volume of 2,706,558. The company has a debt-to-equity ratio of 0.93, a current ratio of 0.78 and a quick ratio of 0.78. The business’s fifty day moving average is $196.69 and its 200 day moving average is $119.39. Atlassian has a 52 week low of $56.01 and a 52 week high of $229.96. The company has a market capitalization of $46.40 billion, a PE ratio of 189.88, a P/E/G ratio of 20.25 and a beta of 1.16.

Atlassian News Summary

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Revenue rose 23.7% year over year to $1.77 billion, above the $1.71 billion consensus, while earnings of $1.65 per share beat the $1.39 estimate. Atlassian Swings To Q3 Profit As Revenue Jumps
• Positive Sentiment: Atlassian said remaining performance obligations increased 44% and Teamwork Collection customers grew sevenfold year over year, signaling strong demand and potential future revenue. Atlassian Announces First Quarter Fiscal Year 2027 Results
• Negative Sentiment: Despite the results—and guidance that reportedly topped estimates—TEAM fell sharply after the report. Coverage points to investor disappointment with the growth outlook: after a strong run, the market appears to have expected more acceleration from Atlassian. Atlassian’s Q3 CY2026: beats on revenue but stock drops Atlassian Q1 2027: Strong Beat, But the Growth Guide Stings

Insider Buying and Selling at Atlassian

In other news, CRO Brian Duffy sold 1,851 shares of Atlassian stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $172.45, for a total value of $319,204.95. Following the completion of the transaction, the executive owned 218,223 shares of the company’s stock, valued at $37,632,556.35. This trade represents a 0.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James Chuong sold 9,054 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the transaction, the chief financial officer owned 279,218 shares in the company, valued at $48,151,144.10. This represents a 3.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 22,475 shares of company stock worth $3,822,643 over the last quarter. 37.63% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Bank of America increased their price objective on shares of Atlassian from $175.00 to $210.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Robert W. Baird boosted their price objective on shares of Atlassian from $200.00 to $245.00 and gave the company an “outperform” rating in a research report on Monday, September 28th. Oppenheimer upped their target price on shares of Atlassian from $200.00 to $275.00 and gave the stock an “outperform” rating in a research note on Thursday, October 22nd. FBN Securities reaffirmed an “outperform” rating and issued a $170.00 target price on shares of Atlassian in a research note on Monday, August 10th. Finally, BTIG Research increased their target price on Atlassian from $230.00 to $260.00 and gave the stock a “buy” rating in a report on Tuesday, October 20th. Twenty-three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Atlassian currently has a consensus rating of “Moderate Buy” and an average price target of $217.76.

About Atlassian

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.