Aug 7 (Reuters) - Atlassian ( TEAM ) projected

first-quarter revenue below estimates on Thursday, as enterprise

customers cut spending on cloud software services in a tough

economy.

Macroeconomic uncertainty and challenged IT budgets are

forcing businesses to dial back their expenses on paid premium

cloud services.

Contract negotiations also appear to favor longer and larger

contract terms, as customers look to negotiate greater

concessions from vendors, such as better pricing, increased

support and professional services, according to analysts.

Some customers are also considering pulling forward spending

that was planned for 2026 into this year to get ahead of

potential adverse changes on the trade and geopolitical fronts,

analysts have said.

Atlassian's ( TEAM ) collaboration tools - such as Jira software for

planning and project management and Confluence for content

creation - serve over 300,000 customers.

Its latest offering, Rovo - released in October 2024 with a

higher price tag than its other products - is an AI assistant

that allows users to do enhanced search, learning and automation

across enterprise data.

For the first quarter of fiscal 2026, Atlassian ( TEAM ) sees revenue

in the range of $1.395 billion to $1.403 billion, while analysts

expect $1.412 billion, according to data compiled by LSEG.

It expects fiscal 2026 revenue growth of 18%, compared with

analysts' estimates of a growth of 18.7%.

Atlassian's ( TEAM ) revenue for the three months ended June 30 stood

at $1.38 billion, compared with an estimate of $1.36 billion.