We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Atlassian to Report Q1 Earnings: What's in Store for the Stock?
Read MoreHide Full Article
Key Takeaways
Atlassian expects first-quarter fiscal 2026 revenues of $1.395B-$1.403B.
Cloud revenues are estimated at $969.1M, rising 22.3% on strong demand for Jira and Confluence.
Soft IT spending and macro headwinds might have tempered TEAM's overall quarterly performance.
Atlassian (TEAM - Free Report) , a prominent provider of team collaboration and productivity software, is scheduled to report first-quarter fiscal 2026 results after market close on Oct. 30.
Atlassian projects its fiscal first-quarter revenues between $1.395 billion and $1.403 billion. The Zacks Consensus Estimate for revenues is pegged at $1.40 billion, suggesting growth of 17.8% from the year-ago reported figure.
For fiscal first-quarter earnings, the consensus mark has been revised upward by a cent to 83 cents per share over the past 60 days. In the year-ago quarter, the company had reported non-GAAP earnings of 77 cents.
TEAM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.9%.
The robust adoption of Atlassian’s cloud-based offerings, along with the accelerating trend of digitalization among organizations and the increasing embrace of hybrid work models, is likely to have propelled the company’s fiscal first-quarter performance. The surge in demand for TEAM’s cloud solutions from both new and existing customers, shifting away from on-premises products, is likely to have served as a positive catalyst for growth in the to-be-reported quarter.
Our estimate for revenues from Cloud deployment is pegged at $969.1 million, indicating a 22.3% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 7.9% year over year to $362.2 million.
The strong demand for essential products like Jira Software and Confluence Cloud, combined with the growing adoption of advanced solutions, such as Jira Product Discovery Premium, Compass Premium and Guard Premium, is expected to have driven TEAM’s success in the fiscal first quarter. The strong momentum in the recently launched Teamwork Collection and the increasing use of Rovo AI tools are likely to have supported user expansion. These cutting-edge offerings deliver enterprise-grade capabilities and are expected to have boosted the latest cloud solutions to new heights.
Atlassian's emphasis on integrating AI features into its collaboration software is likely to have driven its top line in the first quarter. Additionally, Atlassian’s partnership with Google Cloud is expected to have accelerated its multi-cloud strategy and bring advanced AI capabilities to enterprise customers. The company ended the fourth quarter with 2.3 million AI users, reflecting strong adoption of its AI-powered teamwork platform.
However, TEAM’s performance in the fiscal first quarter is expected to have been affected by a soft IT spending environment. Still, high interest rates and protracted inflationary conditions are likely to have hurt consumer spending. Furthermore, businesses are postponing significant IT investments due to a struggling global economy, which is further complicated by macroeconomic and geopolitical challenges.
What Our Proven Model Says for TEAM’s Q1 Earnings
Our proven model does not conclusively predict an earnings beat for Atlassian this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
TEAM has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
It is set to report third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for RDDT’s third-quarter earnings is pegged at 52 cents per share, up by a cent over the past 60 days, indicating an increase of 225% from the year-ago quarter’s reported figure.
Meta Platforms (META - Free Report) has an Earnings ESP of +3.03% and carries a Zacks Rank #2 at present.
Meta Platforms is slated to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for META’s third-quarter 2025 earnings is pegged at $6.61 per share, up by 3 cents over the past seven days, indicating a rise of 9.6% from the year-ago quarter’s reported figure.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +1.54% and carries a Zacks Rank #2 at present.
It is set to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for NXPI’s third-quarter earnings is pegged at $1.29 per share, unchanged over the past 60 days, indicating an increase of 3.2% from the year-ago quarter’s reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Atlassian to Report Q1 Earnings: What's in Store for the Stock?
Key Takeaways
Atlassian (TEAM - Free Report) , a prominent provider of team collaboration and productivity software, is scheduled to report first-quarter fiscal 2026 results after market close on Oct. 30.
Atlassian projects its fiscal first-quarter revenues between $1.395 billion and $1.403 billion. The Zacks Consensus Estimate for revenues is pegged at $1.40 billion, suggesting growth of 17.8% from the year-ago reported figure.
For fiscal first-quarter earnings, the consensus mark has been revised upward by a cent to 83 cents per share over the past 60 days. In the year-ago quarter, the company had reported non-GAAP earnings of 77 cents.
TEAM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.9%.
Atlassian Corporation PLC Price and EPS Surprise
Atlassian Corporation PLC price-eps-surprise | Atlassian Corporation PLC Quote
Factors to Consider for TEAM
The robust adoption of Atlassian’s cloud-based offerings, along with the accelerating trend of digitalization among organizations and the increasing embrace of hybrid work models, is likely to have propelled the company’s fiscal first-quarter performance. The surge in demand for TEAM’s cloud solutions from both new and existing customers, shifting away from on-premises products, is likely to have served as a positive catalyst for growth in the to-be-reported quarter.
Our estimate for revenues from Cloud deployment is pegged at $969.1 million, indicating a 22.3% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 7.9% year over year to $362.2 million.
The strong demand for essential products like Jira Software and Confluence Cloud, combined with the growing adoption of advanced solutions, such as Jira Product Discovery Premium, Compass Premium and Guard Premium, is expected to have driven TEAM’s success in the fiscal first quarter. The strong momentum in the recently launched Teamwork Collection and the increasing use of Rovo AI tools are likely to have supported user expansion. These cutting-edge offerings deliver enterprise-grade capabilities and are expected to have boosted the latest cloud solutions to new heights.
Atlassian's emphasis on integrating AI features into its collaboration software is likely to have driven its top line in the first quarter. Additionally, Atlassian’s partnership with Google Cloud is expected to have accelerated its multi-cloud strategy and bring advanced AI capabilities to enterprise customers. The company ended the fourth quarter with 2.3 million AI users, reflecting strong adoption of its AI-powered teamwork platform.
However, TEAM’s performance in the fiscal first quarter is expected to have been affected by a soft IT spending environment. Still, high interest rates and protracted inflationary conditions are likely to have hurt consumer spending. Furthermore, businesses are postponing significant IT investments due to a struggling global economy, which is further complicated by macroeconomic and geopolitical challenges.
What Our Proven Model Says for TEAM’s Q1 Earnings
Our proven model does not conclusively predict an earnings beat for Atlassian this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
TEAM has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Reddit Inc. (RDDT - Free Report) has an Earnings ESP of +20.17% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is set to report third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for RDDT’s third-quarter earnings is pegged at 52 cents per share, up by a cent over the past 60 days, indicating an increase of 225% from the year-ago quarter’s reported figure.
Meta Platforms (META - Free Report) has an Earnings ESP of +3.03% and carries a Zacks Rank #2 at present.
Meta Platforms is slated to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for META’s third-quarter 2025 earnings is pegged at $6.61 per share, up by 3 cents over the past seven days, indicating a rise of 9.6% from the year-ago quarter’s reported figure.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +1.54% and carries a Zacks Rank #2 at present.
It is set to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for NXPI’s third-quarter earnings is pegged at $1.29 per share, unchanged over the past 60 days, indicating an increase of 3.2% from the year-ago quarter’s reported figure.