Enterprise software developer Atlassian Q1 revenue beats estimates on cloud and AI strength

Atlassian

30/10/2025 20:39

Overview

Atlassian fiscal Q1 rev grows 21% yr/yr, beating analyst expectations, per LSEG data

Cloud revenue for fiscal Q1 rises 26% yr/yr, driven by AI innovation

Company announces $2.5 bln share repurchase program following completion of previous $1.5 bln program

Outlook

Atlassian expects Q2 revenue between $1,535 mln and $1,543 mln

Company anticipates FY26 revenue growth of approximately 20.8%

Cloud revenue growth for FY26 expected at approximately 22.5%

Result Drivers

AI INNOVATION - Atlassian attributes 26% yr/yr growth in Cloud revenue to AI innovation and increased adoption of AI capabilities

ENTERPRISE SALES - Strong enterprise sales execution and migration momentum contributed to 21% yr/yr revenue growth

RESTRUCTURING IMPACT - Restructuring charges of $55.7 mln negatively impacted GAAP operating margin by 4%

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.43 bln
$1.40 bln (27 Analysts)
Q1 Subscription Revenue
$998 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Atlassian Corp is $237.50, about 32.9% above its October 29 closing price of $159.28

Press Release: ID:nBwBzyp2a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)