Atlassian to Report Q1 Earnings: What's in Store for the Stock?

Atlassian TEAM, a prominent provider of team collaboration and productivity software, is scheduled to report first-quarter fiscal 2026 results after market close on Oct. 30.Atlassian projects its fiscal first-quarter revenues between $1.395 billion and $1.403 billion. The Zacks Consensus Estimate for revenues is pegged at $1.40 billion, suggesting growth of 17.8% from the year-ago reported figure.For fiscal first-quarter earnings, the consensus mark has been revised upward by a cent to 83 cents per share over the past 60 days. In the year-ago quarter, the company had reported non-GAAP earnings of 77 cents. TEAM surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.9%.Atlassian Corporation PLC Price and EPS Surprise Atlassian Corporation PLC price-eps-surprise | Atlassian Corporation PLC QuoteFactors to Consider for TEAMThe 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 first-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.Our estimate for revenues from Cloud deployment is pegged at $969.1 million, indicating a 22.3% increase from the year-ago quarter. Revenues from Data Center deployment are anticipated to grow 7.9% year over year to $362.2 million.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 first quarter. The strong momentum in the recently launched Teamwork Collection and the increasing use of Rovo AI tools are likely to have supported user expansion. These cutting-edge 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 first quarter. Additionally, Atlassian’s partnership with Google Cloud is expected to have accelerated its multi-cloud strategy and bring advanced AI capabilities to enterprise customers. The company ended the fourth quarter with 2.3 million AI users, reflecting strong adoption of its AI-powered teamwork platform.However, TEAM’s performance in the fiscal first 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 Q1 EarningsOur 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 #5 (Strong Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Reddit Inc. RDDT has an Earnings ESP of +20.17% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.It is set to report third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for RDDT’s third-quarter earnings is pegged at 52 cents per share, up by a cent over the past 60 days, indicating an increase of 225% from the year-ago quarter’s reported figure. Meta Platforms META has an Earnings ESP of +3.03% and carries a Zacks Rank #2 at present. Meta Platforms is slated to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for META’s third-quarter 2025 earnings is pegged at $6.61 per share, up by 3 cents over the past seven days, indicating a rise of 9.6% from the year-ago quarter’s reported figure.Cognizant Technology Solutions CTSH has an Earnings ESP of +1.54% and carries a Zacks Rank #2 at present.It is set to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for NXPI’s third-quarter earnings is pegged at $1.29 per share, unchanged over the past 60 days, indicating an increase of 3.2% from the year-ago quarter’s reported figure.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks