Atlassian Stock Plunges 12.16% — Slower Subscription Growth Outlook Erases $5.6 Billion
The collaboration-software company returned to operating profit, but its full-year subscription growth forecast trails the first quarter.
Atlassian, which makes team collaboration software, plunged 12.16% to $161.01 in Friday trading, as of 9:55 a.m. ET, losing $5.6 billion in market value. The sell-off followed Thursday's earnings release and a forecast for slower subscription growth over the full year.
Subscription Outlook Trails The Quarter
Management projects approximately 18.5% full-year growth in the yearly value of active subscriptions. The first quarter delivered 23% growth by that measure, putting the outlook below the quarter's pace.
The growth forecast came alongside a return to operating profit under standard accounting. A 24% revenue increase brought the first-quarter total to $1,772 million.
Atlassian plans to start enforcing usage-based pricing in December. Management expects that change to have little effect on full-year revenue.
A Third Decline Threatens Earlier Gains
TEAM shares were on pace for a third straight daily decline in Friday trading, as of 9:55 a.m. ET. Atlassian's market value stood at $40.76 billion at that same reading.
Before Friday's sell-off, the stock had risen 13% year-to-date through Thursday's close. That outpaced the S&P 500's 8% gain over the same period.
For the earlier period ended June 30, Atlassian reported $1.8 billion in revenue and $139.1 million in net income in its annual filing.
Jira Anchors A Broad Software Business
Atlassian's products span project management through Jira, knowledge sharing through Confluence, and IT and customer support through Jira Service Management. Its cloud platform also supports AI agents.
Customers can buy individual apps or packages called Collections. The business serves software developers, IT and support staff, and business teams; most new customers arrive through its website, while a direct sales force works with large existing accounts.
The company serves more than 350,000 customers across over 200 countries and territories, including over 85% of the Fortune 500. Atlassian had 13,301 full-time employees as of June 30, 2026.
Sources
- Atlassian Shares Fall 16% as Cautious Fiscal 2027 Guidance Overshadows Strong Quarterly Results — Yahoo Finance
- Atlassian Stock Sinks. Analysts Call Worries Over Slowing Cloud Growth an ‘Overreaction.’ — Barron's
- Why Is Atlassian Stock Sinking Friday? — benzinga.com
- Atlassian tumbles 13% as cautious outlook offsets strong quarterly beat — Yahoo Finance
- Atlassian and Iren caught up in NASDAQ rout, Sohn stock pickers eye value — afr.com
- The company's filing (Atlassian) — SEC filing
- Atlassian — Form 10-K for the fiscal year ended 2026-06-30 (quarterly results) — SEC EDGAR
