Atlassian Stock Drops After Decelerated Revenue Guidance
Atlassian shares fell after the company issued a decelerated full-year revenue growth guide despite beating first-quarter earnings and revenue estimates.
Shares of Atlassian dropped approximately $30 following the release of its fiscal first quarter 2027 financial results. The company reported revenue of $1.77 billion and adjusted earnings per share of $1.65, both of which exceeded analyst expectations. Cloud revenue grew 31% to $1.30 billion, and free cash flow reached $463 million.
The stock decline was triggered by a decelerated full-year revenue growth guide of 13.75%, a significant drop from the 24% growth recorded in the first quarter. This slowdown is driven by a projected 16% decline in Data Center revenue as customers migrate toward cloud deployments.
CEO Mike Cannon-Brookes stated that remaining performance obligations rose 44% year-over-year and that Teamwork Collection customers grew sevenfold. He suggested these metrics indicate durable demand for the company's services despite the near-term growth compression.
