Atlassian posts Q1 FY2027 earnings beat but issues slower growth outlook, shares tumble
Atlassian reported first‑quarter fiscal 2027 revenue of $1.772 billion, up 24% year‑over‑year, and adjusted earnings of $1.65 per share, beating analyst estimates. The company forecast subscription ARR growth of about 18.5% for the full year, down from the 23% growth recorded in the quarter, and projected total revenue growth of 13.75% for FY2027, well below the 24% quarterly increase. The weaker guidance triggered a pre‑market sell‑off of roughly 15‑16% in the stock.
Why it matters
The lower full‑year revenue and subscription growth outlook suggests a slowdown in Atlassian’s growth trajectory, which may pressure valuation multiples. Investors will watch whether the company can sustain cloud revenue expansion and improve margins as it targets a 25.5% adjusted operating‑margin for FY2027 (the company said).
Key facts
- 1Revenue was $1,772 million, up 24% YoY from $1,433 million in Q1 FY2026. sec.gov
- 2Adjusted earnings per share were $1.65, beating the $1.43 consensus. finance.yahoo.com
- 3Subscription ARR grew 23% YoY in the quarter. sec.gov
- 4The company forecast subscription ARR growth of approximately 18.5% for FY2027. finance.yahoo.com
- 5Full‑year revenue growth is projected at 13.75% for FY2027. finance.yahoo.com
- 6Cloud revenue was $1.30 billion, up 31% YoY. sec.gov
Summary written by AlphAI AI Desk from 11 of 11 sources. Not investment advice. Figures are as stated by the linked sources.