Have you assessed how the international operations of Atlassian (TEAM Quick QuoteTEAM - Free Report) performed in the quarter ended June 2025? For this company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Upon examining TEAM's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter stood at $1.38 billion, increasing 22.3% year over year. Now, let's delve into TEAM's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into TEAM's International Revenue Trends

EMEA generated $567.58 million in revenues for the company in the last quarter, constituting 41% of the total. This represented a surprise of +3.42% compared to the $548.81 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $542.69 million (40%), and in the year-ago quarter, it contributed $447.61 million (39.6%) to the total revenue.

During the quarter, Asia Pacific contributed $152.28 million in revenue, making up 11% of the total revenue. When compared to the consensus estimate of $150.44 million, this meant a surprise of +1.22%. Looking back, Asia Pacific contributed $149.24 million, or 11%, in the previous quarter, and $126.9 million, or 11.2%, in the same quarter of the previous year.

Revenue Projections for Overseas Markets

Wall Street analysts expect Atlassian to report a total revenue of $1.4 billion in the current fiscal quarter, which suggests an increase of 17.9% from the prior-year quarter. Revenue shares from EMEA and Asia Pacific are predicted to be 40.5%, and 11%, corresponding to amounts of $567.34 million, and $154.23 million, respectively.

For the full year, the company is projected to achieve a total revenue of $6.15 billion, which signifies a rise of 17.9% from the last year. The share of this revenue from various regions is expected to be: EMEA at 40.1% ($2.47 billion), and Asia Pacific at 10.8% ($665.55 million).

Concluding Remarks

The dependency of Atlassian on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Atlassian, bearing a Zacks Rank #4 (Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of Atlassian's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has diminished by 10.1%, against an upturn of 2.7% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Atlassian among its entities, has appreciated by 6.3%. Over the past three months, the company's shares have seen a decline of 23.9% versus the S&P 500's 13.2% increase. The sector overall has witnessed an increase of 24.3% over the same period.