Atlassian Beats on Fiscal Q1 Revenue of $1.77 Billion, but Shares Slide on Slowing Cloud and ARR Outlook

TEAM reported results for its fiscal first quarter of 2027, the three months ended September 30, 2026, that beat expectations on both lines. Revenue rose 24% to $1.772 billion, and non-GAAP earnings came to $1.65 per share, against consensus of $1.43 per share and $1.71 billion in revenue compiled by SiliconANGLE. GAAP earnings were $0.35 per share. Cloud revenue grew 31% to $1.302 billion, and subscription ARR reached $6.812 billion.

The stock still fell more than 17% in after-hours trading. The pressure came from the growth outlook rather than the revenue guide: Atlassian expects subscription ARR growth to slow to about 18.5% by fiscal year-end from 22.5% reported this quarter, and guided second-quarter cloud growth to about 27%, down from 31%. Total revenue guidance was not weak. The company guided second-quarter revenue to $1.825 billion to $1.835 billion against a $1.82 billion consensus and raised its full-year revenue growth outlook by three-quarters of a point.

The reaction shows how heavily investors weight forward growth in subscription software, especially during a week of broad selling in AI-linked technology names. A quarter that beats on revenue and earnings can still reprice the stock if the recurring-revenue trajectory bends lower.

What to watch: whether cloud growth holds near the 27% guide next quarter, how much of the ARR slowdown reflects the shift of customers off Data Center products, and whether analysts cut price targets after the call.