Atlassian Reports Strong Q1 FY2027 Results Driven by Cloud Growth and AI Adoption
Atlassian (TEAM) reported robust financial results for the first quarter of fiscal 2027, highlighted by a 24% year-over-year increase in total revenue to $1.772 billion. The company's transition to cloud-based models continues to accelerate, with Cloud revenue rising 31% to $1.302 billion and Subscription Annual Recurring Revenue (ARR) reaching $6.812 billion. Significant expansion was noted in the enterprise segment, where high-value customers spending over $1 million annually grew by more than 30%. Technological integration is a key driver of this growth, with Enterprise AI adoption through Rovo reaching 87% among Cloud customers and human-agent collaborations doubling to 10 million monthly interactions. While the company faces declining Data Center revenue as part of its strategic shift, improved operational discipline led to a non-GAAP operating margin of 32%. Management provided optimistic Q2 guidance for cloud growth but cautioned that macroeconomic uncertainties and tougher comparisons in the second half of the year remain risks.
Tickers: $TEAM
Topics: cloud revenue free cash flow operating margin revenue growth subscription ARR
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