Atlassian Corp. (NASDAQ:TEAM) posted its first-quarter fiscal 2027 results after Thursday's closing bell, and the numbers looked good. Really good, actually. The market disagreed anyway.

Atlassian Q1 Details

Atlassian reported quarterly adjusted earnings of $1.65 per share, which beat the analyst estimate of $1.44, per market data. Quarterly revenue came in at $1.77 billion, which beat the $1.71 billion Street estimate.

The company also reported the following quarterly highlights:

• Cloud revenue of $1,302 million, up 31% year-over-year
• Subscription ARR of $6,812 million, up 23% year-over-year
• Remaining performance obligations of $4,746 million, up 44% year-over-year
• Non-GAAP operating margin of 32%

"Q1 was a strong start to fiscal 2027, with RPO up 44% and Teamwork Collection customers up 7x year-over-year," said Mike Cannon-Brookes, Atlassian's CEO.

"Enterprise AI has hit an inflection point. Model power is table stakes. The advantage goes to platforms that bring people and AI agents together with shared context, deep collaboration, and confidence in the outcome. That's what we've built," Cannon-Brookes added.

Looking Ahead

Atlassian raised its fiscal 2027 revenue outlook from $7.43 billion to $7.48 billion, compared to the $7.44 billion analyst estimate.

TEAM Stock Price: According to market data, Atlassian stock was down 17.92% to $150.45 in Thursday's extended trading.