Companies /Technology

Atlassian Corporation - Class A

NASDAQ: TEAM Software - Application
$185.62
â–² $17.15 (+10.18%) today
Markets closed · 5:44pm ET

Q1 2026 Earnings

Reported Oct 30, 2025, 4:09pm ET · SEC source
$1.04
Beat +24.13%
EPS · est. $0.84
$1.4B
Beat +2.18%
Revenue · est. $1.4B
−7.8%
Trailing market
TEAM vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Oct 30Oct 31report 4:09pm ETearnings+0.0%−5.1%
−8%−4%0Oct 30Oct 31earnings+0.0%−5.1%
TEAM −5.1%S&P 500 +0.0%
−8%−4%0Oct 30Oct 31report 4:09pm ETearnings+0.1%−5.1%
−8%−4%0Oct 30Oct 31earnings+0.1%−5.1%
TEAM −5.1%NASDAQ +0.1%
−8%−4%0+4%Oct 29Nov 7report 4:09pm ETearnings−1.9%−6.3%
−8%−4%0+4%Oct 29Nov 7earnings−1.9%−6.3%
TEAM −6.3%S&P 500 −1.9%
−8%−4%0+4%Oct 29Nov 7report 4:09pm ETearnings−3.6%−6.3%
−8%−4%0+4%Oct 29Nov 7earnings−3.6%−6.3%
TEAM −6.3%NASDAQ −3.6%
+5.45%
Day of report
+3.93%
Next session
−6.84%
One week
−7.48%
30 days

S&P 500 over the same 30 days: +0.27%.

Did TEAM Beat Earnings? Q1 2026 Results

Atlassian delivered a standout first quarter for fiscal year 2026, with <a href="https://247wallst.com/investing/2025/10/30/atlassian-shares-jump-on-strong-fy26-q1-earnings/">shares jumping on the results</a> as the collaboration software giant posted revenue of $1.43 billion, up 20.6% year over year and ahead of the $1.40 billion consensus, while non-GAAP EPS of $1.04 cleared the $0.84 estimate by 24.13%. The single biggest story behind the quarter was Atlassian's "Ascend" initiative, a phased program to end-of-life its Data Center products and accelerate customer migration to the cloud, which pulled forward revenue recognition and contributed roughly 1.6 percentage points to total revenue growth. Cloud revenue reached $997.71 million, up 26% year over year, driven by seat expansion, migrations that more than doubled annually, and AI momentum that pushed monthly active users of Atlassian's AI tools past 3.5 million. Remaining performance obligations surged 42% to $3.30 billion, signaling durable enterprise demand. Looking ahead, Atlassian guided Q2 revenue of $1.53 to $1.54 billion and reaffirmed full-year growth of approximately 20.8%, alongside a FY27 non-GAAP operating margin target above 25%.

Key Takeaways
  • Cloud revenue growth of 26% driven by paid seat expansion, Data Center to Cloud migrations, cross-sell, and higher ARPU
  • Data Center to Cloud migrations more than doubled year-over-year
  • 3.5 million monthly active users of AI capabilities, up 50% quarter-over-quarter
  • RPO accelerated to $3.3 billion, up 42% year-over-year
  • Current RPO grew 30% to $2.4 billion
  • 53,017 customers with greater than $10,000 in Cloud ARR, up 13% year-over-year
  • Strong enterprise sales execution with increasing mix of large, multi-year Cloud deals
  • Restructuring charges of $55.7 million negatively impacted GAAP operating margin by 4 percentage points

“Our relentless pace of AI innovation is driving results as we grew Cloud revenue in Q1 to $998 million, up 26% year-over-year, and surpassed 3.5 million monthly active users of our AI capabilities, up 50% quarter-over-quarter.”

Atlassian CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY26, Atlassian expects total revenue of $1,535-$1,543 million, with Cloud revenue growth of approximately 22.5% YoY, Data Center revenue growth of approximately 17.0% YoY, and Marketplace and other revenue growth of approximately 2.0% YoY. Q2 GAAP operating margin is expected at approximately (5.0%) and non-GAAP operating margin at approximately 24.5%. For full-year FY26, total revenue growth is expected at approximately 20.8% YoY (including ~3.2 percentage points from Data Center EOL revenue recognition impact), Cloud revenue growth of approximately 22.5% YoY, Data Center revenue growth of approximately 20.0% YoY, and Marketplace and other revenue growth of approximately 5.0% YoY. FY26 GAAP operating margin is expected at approximately (2.0%) and non-GAAP operating margin at approximately 25.5%. The company reaffirmed its FY27 non-GAAP operating margin target of 25%+ and confidence in achieving a three-year compounded annual growth rate of 20%+ through FY27. Diluted share count is expected to increase by less than 2% in FY26.

TEAM YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$500.0M$1.0B$1.5B$1.2B$1.4BRevenue$970.1M$1.2BGross Profit$-32,810,424$-51,870,000Net Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitNet Income

TEAM Revenue by Segment

Subscription$1.4B
Cloud$997.7M+26.0%
Data Center$372.6M+11.0%
Marketplace and other$62.2M+4.0%

TEAM Revenue by Geography

Americas
EMEA
Asia Pacific

Figures from SEC filings and company reports. Not investment advice.