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# Atlassian Sales Climb 24%, But Shares Plunge About 14% With Slower Growth In Forecast
- URL: https://www.bullished.co/atlassian-sales-climb-24-but-shares-plunge-about-14-with-slower-growth-in-forecast-77dfccc6/
- Published: 2026-11-06T14:36:46.000Z
- Updated: 2026-11-06T14:36:46.000Z
- Description: Cloud revenue grew 31%, while Atlassian projects subscription growth of approximately 18.5% for fiscal 2027.
- Author: Matteo Parrino
- Tags: Earnings, TEAM, Industry: Technology

[Atlassian](https://www.bullished.co/tag/team/), which makes team collaboration software, grew first-quarter sales by [24% to $1,772 million](https://www.sec.gov/Archives/edgar/data/0001650372/000165037226000049/team-20261105.htm?ref=bullished.co), according to results accompanying its Thursday SEC filing. TEAM shares plunged about 14% to $157.57 in Friday trading, with the company forecasting slower subscription growth for fiscal 2027.

## The Forecast Runs Below First-Quarter Growth

Atlassian’s annualized subscription value reached $6,812 million, a 23% increase from a year earlier. Management’s fiscal 2027 forecast calls for [approximately 18.5% growth](https://www.sec.gov/Archives/edgar/data/0001650372/000165037226000049/ex991q1fy27.htm?ref=bullished.co) in that measure, which captures active Cloud and Data Center subscriptions rather than revenue already earned.

The outlook also puts full-year revenue growth at approximately [13.75%](https://siliconangle.com/2026/11/05/atlassian-shares-fall-17-as-slower-subscription-growth-forecast-overshadows-earnings-beat/?ref=bullished.co). Cloud revenue is expected to grow approximately 26%, while Data Center revenue is projected to decline approximately 16%; Marketplace and other revenue is expected to grow approximately 15%.

For the second quarter, Atlassian expects revenue between [$1,825 million](https://siliconangle.com/2026/11/05/atlassian-shares-fall-17-as-slower-subscription-growth-forecast-overshadows-earnings-beat/?ref=bullished.co) and $1,835 million. The forecast pairs approximately 27% cloud growth with an approximately 14% decline in Data Center sales and approximately 20% growth in Marketplace and other revenue.

Those targets follow a quarter in which cloud sales grew 31% to $1,302 million. Revenue awaiting recognition from customer contracts totaled $4,746 million, up 44% from a year earlier.

## Profit Returns, With $463 Million In Cash

First-quarter revenue compared with [$1,433 million](https://www.businesswire.com/news/home/20261105890344/en/Atlassian-Announces-First-Quarter-Fiscal-Year-2027-Results?ref=bullished.co) a year earlier. Atlassian moved from a $52 million net loss to a $91 million profit, earning $0.35 per diluted share under standard accounting versus a $0.20 loss a year earlier.

Operating profit reached [$189 million](https://www.businesswire.com/news/home/20261105890344/en/Atlassian-Announces-First-Quarter-Fiscal-Year-2027-Results?ref=bullished.co), compared with a $96 million operating loss. The operating margin rose to 11% from negative 7%; by the company’s adjusted measure, operating profit reached $576 million and the margin increased to 32% from 23%.

Adjusted net income was $423 million, compared with $276 million a year earlier. Adjusted earnings per share rose to $1.65 from $1.04\. These adjusted measures exclude stock-based pay, amortization of purchased intangible assets and restructuring charges, with related tax adjustments for net income.

Operations generated $469 million in cash. Free cash flow—operating cash after capital spending—was $463 million, or 26% of revenue. Cash and equivalents ended the quarter at $1,121 million.

Management expects lower operating margins than the first-quarter levels: approximately 4.5% under standard accounting and 26% adjusted for the second quarter, and approximately 5% and [25.5%](https://finance.yahoo.com/markets/stocks/articles/atlassian-tumbles-16-weaker-subscription-214612873.html?ref=bullished.co), respectively, for fiscal 2027.

## AI Agents Join Jira And Confluence

Atlassian sells Jira for managing projects, Confluence for sharing knowledge and Jira Service Management for IT and customer support. Customers can buy individual apps or bundles called Collections; the business serves more than 350,000 customers, including over 85% of the [Fortune 500](https://finance.yahoo.com/markets/stocks/articles/atlassian-tumbles-16-weaker-subscription-214612873.html?ref=bullished.co).

Mike Cannon-Brookes, Atlassian’s CEO and co-founder, said Teamwork Collection customers increased sevenfold from a year earlier. “Enterprise AI has hit an [inflection point](https://www.benzinga.com/markets/earnings/26/11/62959007/atlassian-shares-tumble-despite-strong-q1-report-details?ref=bullished.co),” Cannon-Brookes said.

The company’s Agentic Multiplayer Protocol lets AI agents work alongside people through comments, live page editing and assigned Jira tasks, with individual identities, permissions and audit trails. Atlassian also expanded its OpenAI partnership to connect ChatGPT and Codex with the work context held in its Teamwork Graph.

Service Collection now serves more than 70,000 customers and has over $1 billion in annual recurring revenue, growing more than 30% year over year. Atlassian attributed that growth to customers extending service management beyond IT into departments including HR, legal and finance.

The next quarter’s forecast puts cloud growth at approximately 27%, below the 31% just reported, alongside an expected approximately 14% contraction in Data Center revenue.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Atlassian Corp (TEAM)](https://www.sec.gov/Archives/edgar/data/0001650372/000165037226000049/team-20261105.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex991q1fy27.htm — Atlassian Corp 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001650372/000165037226000049/ex991q1fy27.htm?ref=bullished.co) — SEC EDGAR
- [Atlassian shares fall 17% as slower subscription growth forecast overshadows earnings beat - SiliconANGLE](https://siliconangle.com/2026/11/05/atlassian-shares-fall-17-as-slower-subscription-growth-forecast-overshadows-earnings-beat/?ref=bullished.co) — siliconangle.com
- [Atlassian tumbles 13% as cautious outlook offsets strong quarterly beat](https://finance.yahoo.com/markets/stocks/articles/atlassian-tumbles-16-weaker-subscription-214612873.html?ref=bullished.co) — Yahoo Finance
- [Atlassian Shares Tumble Despite Strong Q1 Report: Details](https://www.benzinga.com/markets/earnings/26/11/62959007/atlassian-shares-tumble-despite-strong-q1-report-details?ref=bullished.co) — benzinga.com
- [Why Is Atlassian Stock Sinking Friday?](https://www.benzinga.com/trading-ideas/movers/26/11/62970587/why-is-atlassian-stock-sinking-friday?ref=bullished.co) — benzinga.com
- [Atlassian Announces First Quarter Fiscal Year 2027 Results](https://www.businesswire.com/news/home/20261105890344/en/Atlassian-Announces-First-Quarter-Fiscal-Year-2027-Results?ref=bullished.co) — businesswire.com

### More on Atlassian

- [Atlassian's Two Founders Each Hold 42.84% Of The Vote, Proxy Filing Shows](https://www.bullished.co/atlassians-two-founders-each-hold-42-84-of-the-vote-proxy-filing-shows-f20665ad/)

[All Atlassian (TEAM) coverage →](https://www.bullished.co/tag/team/)