Overview

* Atlassian ( TEAM ) fiscal Q1 rev grows 21% yr/yr, beating analyst expectations, per LSEG data

* Cloud revenue for fiscal Q1 rises 26% yr/yr, driven by AI innovation

* Company announces $2.5 bln share repurchase program following completion of previous $1.5 bln program

Outlook

* Atlassian ( TEAM ) expects Q2 revenue between $1,535 mln and $1,543 mln

* Company anticipates FY26 revenue growth of approximately 20.8%

* Cloud revenue growth for FY26 expected at approximately 22.5%

Result Drivers

* AI INNOVATION - Atlassian ( TEAM ) attributes 26% yr/yr growth in Cloud revenue to AI innovation and increased adoption of AI capabilities

* ENTERPRISE SALES - Strong enterprise sales execution and migration momentum contributed to 21% yr/yr revenue growth

* RESTRUCTURING IMPACT - Restructuring charges of $55.7 mln negatively impacted GAAP operating margin by 4%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $1.43 $1.40

Revenue bln bln (27

Analysts

)

Q1 $998 mln

Subscrip

tion

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Atlassian Corp ( TEAM ) is $237.50, about 32.9% above its October 29 closing price of $159.28

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)