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Atlassian to Report Q2 Earnings: What's in Store for the Stock?
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Key Takeaways
TEAM expects Q2 revenues of $1.535-$1.543B, with consensus estimates implying 19.7% year-over-year growth.
TEAM's cloud revenues are expected to jump 22.5% Y/Y, driven by Jira, Confluence and premium offerings.
Atlassian saw over 3.5M active AI users in Q1, with AI features supporting collaboration growth.
Atlassian (TEAM - Free Report) , a prominent provider of team collaboration and productivity software, is scheduled to report second-quarter fiscal 2026 results after market close on Feb. 5.
Atlassian projects its fiscal second-quarter revenues between $1.535 billion and $1.543 billion. The Zacks Consensus Estimate for revenues is pegged at $1.54 billion, suggesting growth of 19.7% from the year-ago reported figure.
For fiscal second-quarter earnings, the consensus mark is pegged at $1.12 per share, unchanged over the past 60 days. In the year-ago quarter, the company had reported non-GAAP earnings of 96 cents.
TEAM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20.7%.
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 second-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.
The Zacks Consensus Estimate for revenues from Cloud deployment is pegged at $1.04 billion, indicating a 22.5% increase from the year-ago quarter. The Zacks Consensus Estimate for revenues from Data Center deployment is pegged at to $423.8 million, suggesting growth of 16.9% year over year
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 second quarter. Strong momentum in the Teamwork Collection and the increasing use of Rovo AI tools are likely to have supported user expansion. These 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 second quarter. The company ended the first quarter with more than 3.5 million active AI users, reflecting strong adoption of its AI-powered teamwork platform.
However, TEAM’s performance in the fiscal second 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 Q2 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 #3 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. IPG Photonics (IPGP - Free Report) has an Earnings ESP of +15.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
IPG Photonics is slated to report fourth-quarter 2025 results on Feb. 12. The Zacks Consensus Estimate for IPGP’s fourth-quarter 2025 earnings is pegged at 25 cents per share, up by a penny over the past 30 days, indicating an increase of 38.9% from the year-ago quarter’s reported figure.
Microchip Technology (MCHP - Free Report) has an Earnings ESP of +1.34% and sports a Zacks Rank #1 at present.
It is set to report third-quarter fiscal 2026 results on Feb. 5. The Zacks Consensus Estimate for Microchip’s third-quarter earnings is pegged at 43 cents per share, up by a penny over the past seven days, indicating a rise of 115% from the year-ago quarter’s reported figure.
AMETEK (AME - Free Report) has an Earnings ESP of +0.38% and carries a Zacks Rank #2 at present.
AMETEK is scheduled to report fourth-quarter 2025 results on Feb. 3. The Zacks Consensus Estimate for AMETEK’s fourth-quarter 2025 earnings is pegged at $1.94 per share, up by a penny over the past 60 days, indicating a rise of 3.7% from the year-ago quarter’s reported figure.
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Atlassian to Report Q2 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 second-quarter fiscal 2026 results after market close on Feb. 5.
Atlassian projects its fiscal second-quarter revenues between $1.535 billion and $1.543 billion. The Zacks Consensus Estimate for revenues is pegged at $1.54 billion, suggesting growth of 19.7% from the year-ago reported figure.
For fiscal second-quarter earnings, the consensus mark is pegged at $1.12 per share, unchanged over the past 60 days. In the year-ago quarter, the company had reported non-GAAP earnings of 96 cents.
TEAM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20.7%.
Atlassian Corporation PLC Price and EPS Surprise
Atlassian Corporation PLC price-eps-surprise | Atlassian Corporation PLC Quote
Factors to Consider for TEAM’s Q2 Results
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 second-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.
The Zacks Consensus Estimate for revenues from Cloud deployment is pegged at $1.04 billion, indicating a 22.5% increase from the year-ago quarter. The Zacks Consensus Estimate for revenues from Data Center deployment is pegged at to $423.8 million, suggesting growth of 16.9% year over year
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 second quarter. Strong momentum in the Teamwork Collection and the increasing use of Rovo AI tools are likely to have supported user expansion. These 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 second quarter. The company ended the first quarter with more than 3.5 million active AI users, reflecting strong adoption of its AI-powered teamwork platform.
However, TEAM’s performance in the fiscal second 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 Q2 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 #3 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.
IPG Photonics (IPGP - Free Report) has an Earnings ESP of +15.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
IPG Photonics is slated to report fourth-quarter 2025 results on Feb. 12. The Zacks Consensus Estimate for IPGP’s fourth-quarter 2025 earnings is pegged at 25 cents per share, up by a penny over the past 30 days, indicating an increase of 38.9% from the year-ago quarter’s reported figure.
Microchip Technology (MCHP - Free Report) has an Earnings ESP of +1.34% and sports a Zacks Rank #1 at present.
It is set to report third-quarter fiscal 2026 results on Feb. 5. The Zacks Consensus Estimate for Microchip’s third-quarter earnings is pegged at 43 cents per share, up by a penny over the past seven days, indicating a rise of 115% from the year-ago quarter’s reported figure.
AMETEK (AME - Free Report) has an Earnings ESP of +0.38% and carries a Zacks Rank #2 at present.
AMETEK is scheduled to report fourth-quarter 2025 results on Feb. 3. The Zacks Consensus Estimate for AMETEK’s fourth-quarter 2025 earnings is pegged at $1.94 per share, up by a penny over the past 60 days, indicating a rise of 3.7% from the year-ago quarter’s reported figure.