Atlassian's Q1 revenue beats estimates on cloud demand
TEAM•TEAM•TEAM•TEAM•Atlassian's fiscal first-quarter revenue rose 24% year over year to $1.77 billion, beating the $1.71 billion consensus estimate, with the company citing cloud and subscription growth. It expects second-quarter revenue of $1.825 billion to $1.835 billion and fiscal 2027 revenue growth of about 13.75%.
Atlassian reported fiscal first-quarter revenue of $1.77 billion, up 24% year over year and above analyst expectations of $1.71 billion. Net income was $90.72 million, and adjusted earnings per share increased year over year.
The company attributed revenue growth to increased cloud revenue and subscription annual recurring revenue. It said Service Collection ARR and its customer base grew through adoption across multiple enterprise functions, while improved operating margin and free cash flow reflected a focus on profitability. Atlassian expects second-quarter revenue of $1.825 billion to $1.835 billion, fiscal 2027 total revenue growth of about 13.75%, and fiscal 2027 cloud revenue growth of about 26%.
