PomegraAtlassian Stock Sinks 17% After Hours on Growth Guidance
Why is Atlassian stock down today?
Atlassian (TEAM) stock fell about 17% in after-hours trading on Thursday, from its $183.29 close, after guidance pointed to slower subscription growth despite an earnings beat.
Key numbers
| Revenue | $1.77B+24% YoY |
|---|---|
| Adjusted EPS | $1.65vs $1.43 expected |
| Cloud revenue | $1.30B+31% YoY |
| Subscription ARR | $6.81B+23% YoY |
| FY2027 ARR growth outlook | ~18.5%down from ~23% |
| Stock, Nov 5 regular session | $183.29-3.5% (per [6]) |
What happened
Atlassian (TEAM) stock fell about 17% in after-hours trading on Thursday, from its $183.29 close, after guidance pointed to slower subscription growth despite an earnings beat. The company, which makes work tools such as Jira, reported sales of $1.77 billion, up 24% from a year earlier, and adjusted profit of $1.65 per share against $1.43 expected. It said the yearly growth rate of its subscription contracts (annual recurring revenue) should slow to about 18.5%, down from about 23% now. Cloud sales grew 31%, but it expects about 27% next quarter.
Why it matters
Atlassian's forecast matters because software stock prices depend heavily on how fast sales are expected to grow, not just on past results. Slower growth ahead can make a stock look more expensive compared with its future profits. Atlassian also expects revenue from its older self-hosted products (Data Center) to shrink about 16% this fiscal year, so its cloud business has to carry the growth.
Who this affects
- MarketbearishMedium impact
- Software investors get a fresh worry about slowing growth.
- CompanybearishHigh impact
- Shareholders lost about a sixth of the stock's value after hours.
- CompetitorsneutralLow impact
- Rivals' own growth forecasts may now face closer investor scrutiny.
- IndustrymixedMedium impact
- Shift to cloud continues as self-hosted revenue shrinks about 16%.
Atlassian vs monday.com, ServiceNow, Salesforce
How we got here
Atlassian closes at $183.29, down 3.5% in regular trading, before reporting results.
Atlassian reports Q1 FY2027 revenue of $1.77B, up 24%, and raises profit margin outlook.
Shares drop 16–17% after hours as subscription growth outlook slows to about 18.5%.
What to watch
- How Atlassian shares trade in regular hours after the after-hours drop2026-11-06
- Whether Q2 cloud revenue growth lands near the roughly 27% Atlassian guided toQ2 FY2027
- Data Center revenue, which Atlassian expects to fall about 14% in the December quarterQ2 FY2027
Educational content only. Not investment advice.
More briefsAll briefs →
DraftKings Stock Plunges 18% After Earnings Miss
DraftKings (DKNG) lost $0.94 a share and cut its 2026 sales outlook as it spends on prediction markets
Nikkei Falls 6.2% Into Bear Market After AI Stock Selloff
The Nikkei (^N225) hit a technical bear market as SoftBank (9984.T) tumbled about 11% in the AI-stock rout
Kospi Plunges 8% After AI Chip Rout, Halting Trading
South Korea's Kospi (KS11) fell below 5,000 as Samsung and SK Hynix sank 10% or more on US AI regulation fears