$TEAM · Atlassian Corp
Atlassian reported Q1 FY2027 (ended Sept 30, 2026) results: total revenue $1.772B, up 24% YoY; Cloud revenue $1.302B, up 31%; subscription ARR $6.812B, up 23%; RPO $4.746B, up 44%. GAAP net income was $91M ($0.35 diluted) vs a $52M loss a year ago; non-GAAP EPS was $1.65 vs $1.04. Free cash flow was $463M (26% margin). The 8-K also disclosed Chief Accounting Officer Gene Liu's departure effective Nov 13, 2026, and the appointment of Eli Berkovitch effective Nov 16, 2026.
- Revenue $1.772B, up 24% YoY; Cloud revenue $1.302B, up 31% YoY.
- Non-GAAP EPS $1.65 vs $1.04 a year ago; GAAP EPS $0.35 vs -$0.20.
- Subscription ARR $6.812B (+23% YoY); RPO $4.746B (+44% YoY).
- Free cash flow $463M (26% margin); GAAP operating margin 11%, non-GAAP 32%.
- CAO Gene Liu departs Nov 13; Eli Berkovitch appointed with $475K salary and $4.5M RSU grant.
Extended-hours last trade $151.07, down 17.58% vs the $183.29 regular close, despite a beat on revenue and EPS — the market is reacting to Q2 guidance implying a sharp sequential deceleration.
A strong quarter was overshadowed by guidance implying a sharp sequential slowdown, driving a 17.6% after-hours selloff in a $46B company.
Atlassian's AI/enterprise narrative (Teamwork Graph, AMP, OpenAI partnership) is strong, but the stock's reaction mirrors broader software-sector sensitivity to decelerating growth guidance.
Q2 guidance implies Cloud growth slowing to ~27% and Data Center revenue declining ~14% YoY, signaling a growth deceleration. The CAO departure, while stated as not due to disagreement, adds leadership-transition risk.