Atlassian reported FY26 Q1 earnings including revenue of $1.4 billion, up 21% year-over-year, and cloud revenue of $998 million, up 26% year-over-year.
Evaluate the expected performance of Atlassian (TEAM) for the quarter ended September 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Atlassian (TEAM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
I'm upgrading Atlassian to a strong buy, as recent AI-driven fears have led to a ~40% YTD decline, creating an attractive entry point. TEAM's growth remains robust, with 26% y/y cloud revenue growth and no material seat contraction, despite AI concerns impacting developer roles. Recent acquisitions in AI and developer productivity tools position TEAM to offset potential industry shifts and expand its product ecosystem.
Upgrading Atlassian (TEAM) to Strong Buy due to compelling valuation and new AI-focused catalysts, notably the acquisition of The Browser Company. Integration of Atlassian's suite with an AI-powered enterprise browser could revolutionize workflow and unlock significant new revenue streams beyond current analyst forecasts. Despite recent stock underperformance, Atlassian's financials remain robust with consistent high growth, strong cash flow, and a healthy balance sheet.
Atlassian has agreed to buy The Browser Company, which is behind the Arc and Dia web browsers. OpenAI and Perplexity both reportedly looked at acquiring the startup.
Review Atlassian's (TEAM) international revenue performance and how it affects the predictions of financial analysts on Wall Street and the future prospects for the stock.
Atlassian's multiple contraction is a long-term buying opportunity, as fundamentals remain strong and strategic investments in AI and System of Work drive enterprise adoption. Q4 FY25 results beat expectations, with 22% YoY revenue growth and strong Cloud segment performance, highlighting successful product innovation and customer expansion. Management's cautious FY26 guidance reflects macro uncertainty, but confidence remains in achieving $10B in revenue by FY29 and margin expansion from FY27 onward.
Investor sentiment has shifted away from small/mid-cap stocks, but I see Atlassian's recent selloff as an overreaction and a buying opportunity. Atlassian remains a market leader with strong AI-driven growth potential, high gross margins, and a unique, efficient sales model. The company has successfully transitioned to a recurring subscription model, stabilizing revenue and maintaining Rule of 40 metrics with solid growth and profitability.
TEAM beats Q4 earnings and revenues, fueled by cloud growth, AI adoption, and stronger margins heading into FY26.
Atlassian Corporation (NASDAQ:TEAM ) Q4 2025 Earnings Conference Call August 7, 2025 5:00 PM ET Company Participants R - Corporate Participant s - Corporate Participant e - Corporate Participant Joseph L. Binz - CFO & Principal Financial Officer Martin Lam - Head of Investor Relations Michael Cannon-Brookes - Co-Founder, CEO & Director Conference Call Participants Arjun Rohit Bhatia - William Blair & Company L.L.C.
The headline numbers for Atlassian (TEAM) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.