Atlassian Shares Drop 16% as Cautious Fiscal 2027 Outlook Offsets Earnings Beat
Atlassian Corporation (TEAM) shares fell approximately 16% in premarket trading following the release of its first-quarter fiscal 2027 results. While the company exceeded analyst expectations with adjusted earnings per share of $1.65 and revenue of $1.77 billion, investor sentiment was dampened by a conservative forward-looking guidance. The primary concern for investors is a projected slowdown in subscription annual recurring revenue (ARR) growth, which is expected to moderate to 18.5% for fiscal 2027 from the current 23%. Additionally, while Cloud revenue remains strong, Data Center revenue is forecasted to decline by approximately 14%. Despite the stock's decline, Atlassian demonstrated operational strength with an adjusted operating margin of 32% and $463 million in free cash flow. Truist Securities responded to the guidance by lowering its price target for the company from $250 to $200.
Tickers: $TEAM
Topics: earnings beat forward guidance revenue growth stock price drop subscription ARR
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Part of the story Atlassian Shares Drop 16% as Cautious Fiscal 2027 Outlook Offsets Earnings Beat (5 articles)