# Atlassian Shares Fall 14% Despite Q1 Results Beating Estimates By John Kim Canonical URL: https://www.tokenpost.com/news/business/51629 Published: 2026-11-08T14:07:42.000Z Updated: 2026-11-08T14:07:42.000Z Section: Business > The company raised its fiscal 2027 cloud growth target to 26%, while Truist read second-quarter guidance as pointing to a sequential slowdown. Atlassian shares fell 14% by noon ET Friday, Nov. 6, despite its first-quarter fiscal 2027 results and outlook topping estimates, as analysts questioned the size of the earnings beat and the implications of guidance. RBC Capital Markets analyst Matthew Hedberg described the quarter as solid but said investors expected a larger beat: “Atlassian delivered a solid qtr, in our view, however, the beat magnitude slightly missed investor expectations.” Atlassian’s fiscal 2027 target for cloud growth now stands at 26%, an increase of 50 basis points. Truist called the outlook underwhelming and interpreted second-quarter guidance as pointing to a sequential slowdown, with underlying growth in the high teens by the end of the fiscal year. One pre-release estimate was above the company’s own revenue range. Oppenheimer modeled $1.783 billion in quarterly revenue, $68 million higher than the upper end of Atlassian’s $1.705 billion-to-$1.715 billion first-quarter range, in an [earlier earnings preview](). That projection was about 24.5% above the $1.4326 billion reported for Q1 FY26. Atlassian’s fiscal year runs from July 1 to June 30, making the quarter ended Sept. 30 its fiscal first quarter. In the preceding fiscal fourth quarter, total revenue was $1.766 billion, including $1.213 billion in cloud revenue, up 31% from a year earlier. Analysts’ longer-term outlook reflected healthy seat growth, the appeal of Atlassian’s Collections strategy and enterprise demand for AI and agentic AI. Oppenheimer’s pre-report view also cited continued customer migrations from Data Center. Fiscal 2026 subscription revenue rose 27%, driven mainly by existing customers adding paid seats and by price increases. ## Links in this article - [earlier earnings preview](https://www.tokenpost.com/news/business/38792)