Corrected: Atlassian's Q1 revenue beats estimates on cloud demand

Atlassian

05/11/2026 21:24

Corectos to remove supbscription ARR as a driver of quarterly revenue growth

Overview
US collaboration software firm's fiscal Q1 revenue rose 24% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 increased yr/yr
Company cites cloud as key drivers for the quarter

Outlook
Atlassian sees Q2 revenue between $1.825 bln and $1.835 bln
Company expects FY27 total revenue growth of about 13.75% year-over-year
Atlassian expects FY27 cloud revenue growth of about 26% year-over-year

Result Drivers
CLOUD GROWTH - Co attributed Q1 revenue growth to increased cloud revenue
SERVICE COLLECTION EXPANSION - Growth in Service Collection ARR and customer base driven by adoption across multiple enterprise functions
OPERATIONAL DISCIPLINE - Co said improved operating margin and free cash flow reflected focus on profitability

Company press release: ID:nBw6SnWn6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.77 bln
$1.71 bln (27 Analysts)
Q1 Net Income
 
$90.72 mln
 
Q1 Gross Profit
 
$1.51 bln
 
Q1 Operating Expenses
 
$1.32 bln
 
Q1 Operating Income
 
$188.79 mln
 
Q1 Pretax Profit
 
$170.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 29 "strong buy" or "buy", 5 "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 $225.00, about 18.5% above its November 4 closing price of $189.88
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 17 three months ago

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