Atlassian Corporation: Beat — EPS $1.65, Revenue $1.77B
Earnings BeatQ1 2027 · After-market
Did Atlassian Corporation (TEAM) beat earnings?
Yes, Atlassian Corporation (TEAM) beat Wall Street analyst expectations for Q1 2027, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+15.38% surprise
$1.65Actual
Expected: $1.43
vs. year ago +58.7%
Total Revenue+3.63% surprise
$1.77BActual
Expected: $1.71B
vs. year ago +24.0%
Released Nov 05 · 4:05 PM ET
Earning Report
| Metric | Q1 FY27 | Q1 FY26 | YoY Change % |
|---|---|---|---|
| Revenue | $1.77B | $1.43B | +24.0% |
| Revenue detail — reported lines | |||
| └─Subscription | $1.70B | $1.37B | +23.5% |
| └─Other | $74.33M | $58.05M | +28.0% |
| └─Cloud | $1.30B | $997.71M | +31.0% |
| └─Data Center | $390.71M | $372.65M | +4.8% |
| └─Marketplace and other | $78.98M | $62.20M | +27.0% |
| Net Income | $90.72M | ($51.87M) | - |
| GAAP Basic EPS | $0.36 | -$0.20 | - |
| GAAP Diluted EPS | $0.35 | -$0.20 | - |
| Non-GAAP Diluted EPS | $1.65 | $1.04 | +58.7% |
Financial Outlook / Guidance
| Metric | Q2 FY27 Outlook | FY27 Outlook | ||
|---|---|---|---|---|
| Guidance | Expected | Guidance | Expected | |
| Revenue | $1,825M-$1,835M | $1.82BBeat +0.55% | ~13.75% YoY | $7.45B |
| Cloud Revenue Growth | ~27.0% YoY | — | ~26.0% YoY | — |
| Data Center Revenue Growth | ~-14.0% YoY | — | ~-16.0% YoY | — |
| Marketplace and other Revenue Growth | ~20.0% YoY | — | ~15.0% YoY | — |
| GAAP Gross Margin | ~84.5% | — | ~84.5% | — |
| Non-GAAP Gross Margin | ~86.5% | — | ~86.5% | — |
| GAAP Operating Margin | ~4.5% | — | ~5.0% | — |
| Non-GAAP Operating Margin | ~26.0% | — | ~25.5% | — |
| Subscription ARR Growth | — | — | ~18.5% YoY | — |
Q2 FY27 Outlook
- Revenue
- Guidance$1,825M-$1,835MExpected$1.82BBeat +0.55%
- Cloud Revenue Growth
- Guidance~27.0% YoYExpected—
- Data Center Revenue Growth
- Guidance~-14.0% YoYExpected—
- Marketplace and other Revenue Growth
- Guidance~20.0% YoYExpected—
- GAAP Gross Margin
- Guidance~84.5%Expected—
- Non-GAAP Gross Margin
- Guidance~86.5%Expected—
- GAAP Operating Margin
- Guidance~4.5%Expected—
- Non-GAAP Operating Margin
- Guidance~26.0%Expected—
- Subscription ARR Growth
- Guidance—Expected—
FY27 Outlook
- Revenue
- Guidance~13.75% YoYExpected$7.45B
- Cloud Revenue Growth
- Guidance~26.0% YoYExpected—
- Data Center Revenue Growth
- Guidance~-16.0% YoYExpected—
- Marketplace and other Revenue Growth
- Guidance~15.0% YoYExpected—
- GAAP Gross Margin
- Guidance~84.5%Expected—
- Non-GAAP Gross Margin
- Guidance~86.5%Expected—
- GAAP Operating Margin
- Guidance~5.0%Expected—
- Non-GAAP Operating Margin
- Guidance~25.5%Expected—
- Subscription ARR Growth
- Guidance~18.5% YoYExpected—
Business Highlights
- ➤Service Collection surpassed 70,000 customers and exceeded $1 billion in ARR.
- ➤Held its largest-ever Team Europe event in Amsterdam with thousands of customers and partners.
- ➤Introduced Agentic Multiplayer Protocol for human-agent teamwork with governed authority and audit trails.
- ➤Rebuilt Atlassian MCP Server reaches 220+ tools using 25% fewer tokens.
- ➤MCP Server surpassed 2 million monthly users and 15 million daily tool calls.
- ➤Expanded strategic OpenAI partnership connecting ChatGPT and Codex with Teamwork Graph context.
- ➤Introduced Code Context, Jira Agents Dashboard, and DX AI Measurement capabilities.
- ➤Accelerated public-sector roadmap: IL5 submission targeted for July 2028.
- ➤Entered a new OneGov agreement with the U.S. General Services Administration.
- ➤Recognized as a Leader in Gartner's Collaborative Work Management Magic Quadrant.
- ➤Named a Leader in IDC MarketScape for AI-enabled IT service management.
- ➤Atlassian Marketplace surpassed $7 billion in lifetime sales with 2,000+ partners.
Management Commentary
Mike Cannon-Brookes, CEO and Co-Founder
“Q1 was a strong start to fiscal 2027, with RPO up 44% and Teamwork Collection customers up 7x year-over-year.”
Mike Cannon-Brookes, CEO and Co-Founder
“Enterprise AI has hit an inflection point. Model power is table stakes. The advantage goes to platforms that bring people and AI agents together with shared context, deep collaboration, and confidence in the outcome. That’s what we’ve built. Our Teamwork Graph gives agents the context of how work actually gets done, and AMP brings them into teams as accountable teammates. We’ve never been better positioned, and we’re just getting started.”
James Chuong, CFO
“Subscription ARR grew 23% year-over-year and Cloud revenue grew 31% year-over-year, carrying forward our strong momentum across our strategic priorities of Enterprise, AI, and the System of Work. Customers are increasingly bringing teams, agents, and workflows onto the Atlassian platform as the Teamwork Graph provides unmatched context, enabling organizations to leverage the full potential of AI at enterprise scale.””
James Chuong, CFO
“We paired that growth with continued operational discipline, expanding GAAP operating margin to 11% while generating $463 million in free cash flow, reflecting our commitment to durable, profitable growth.”