Abstract

Atlassian Corporation PLC will report fiscal Q2 2026 results on February 05, 2026 Post Market; this preview summarizes consensus forecasts and recent performance drivers, with a focus on revenue, margins, adjusted EPS, and segment trends since January 01, 2026.

Market Forecast

For the current fiscal quarter, market expectations indicate Atlassian Corporation PLC’s revenue at USD 1.54 billion, up 24.53% year over year, adjusted EPS at USD 1.14, and EBIT at USD 380.78 million; consensus anticipates margin resilience, with gross profit supported by subscriptions and net margin guided by operating discipline. The company’s core subscription business remains the highlight, underpinned by steady cloud migrations and account expansion, while “Other” revenue provides incremental contribution without materially shifting margin dynamics. The most promising segment is subscriptions at USD 1.37 billion last quarter, and its scale and growth runway through cloud adoption indicate durable double-digit growth potential year over year.

Last Quarter Review

Atlassian Corporation PLC posted last quarter revenue of USD 1.43 billion, gross profit margin of 84.20%, GAAP net profit attributable to the parent company of USD -51.87 million, net profit margin of -3.62%, and adjusted EPS of USD 1.04, with revenue up 20.61% year over year and adjusted EPS up 35.07% year over year. The quarter delivered a positive surprise versus consensus on revenue, EBIT, and adjusted EPS, reflecting disciplined cost control and operating leverage in cloud subscriptions. Main business highlights: subscriptions generated USD 1.37 billion and “Other” contributed USD 58.05 million, with subscriptions representing 95.95% of total revenue and remaining the key growth engine.

Current Quarter Outlook

Subscription Cloud and Data Center

Subscriptions constitute the dominant revenue stream and the prime determinant of quarterly outcomes. With the last quarter’s subscription revenue at USD 1.37 billion and a gross margin of 84.20%, unit economics reflect robust value capture from cloud migrations and enterprise tier adoption. This quarter’s forecasted revenue of USD 1.54 billion and EPS of USD 1.14, tied to an EBIT expectation of USD 380.78 million, suggest ongoing operating leverage as higher-paying cloud seats and expansions offset promotional or migration-related dynamics. Management’s recent execution—delivering upside on revenue and EBIT—implies sustained sales momentum, particularly in enterprise plans where cross-sell across Jira Software, Confluence, and Jira Service Management is entrenched. Watch for commentary on large account renewals and migration pace; any acceleration could lift revenue growth while maintaining high gross margin characteristics.

Most Promising Growth Engine: Enterprise Cloud Migrations

The most promising business driver remains enterprise cloud migrations and seat expansions across Atlassian’s collaboration suite. The prior quarter’s strong adjusted EPS and EBIT beats indicate cost discipline and improving efficiency in sales and marketing as migrations scale. With year-over-year revenue growth tracked at 20.61% last quarter and the current quarter guided to 24.53% year-over-year, incremental growth is likely to come from larger customers standardizing workflows on premium cloud tiers. As enterprise adoption of Jira Service Management and integrations with Confluence deepen, average revenue per account can expand, sustaining revenue compounding. Investors should watch metrics around paid seat additions, enterprise tier mix, and deals involving advanced IT service management features, which often carry higher margins and multipliers for renewals.

Stock Price Drivers: Margin Mix, Operating Discipline, and Guidance Quality

The stock’s performance this quarter hinges on three intertwined factors. First, margin mix: Atlassian’s 84.20% gross margin last quarter reflects favorable cloud economics; maintaining or modestly improving this level supports EPS durability even amid investment in product and platform. Second, operating discipline: last quarter’s EBIT surprise and adjusted EPS outperformance demonstrate cost control that, if sustained, should convert revenue growth into earnings growth despite GAAP net loss. Third, guidance quality: consensus already embeds strong revenue and EPS growth; the tone and specifics of management’s outlook for the remainder of fiscal 2026 will influence multiples. Any signals of faster enterprise migration or attach rates for higher-value modules can lift sentiment, while cautious commentary on macro budgets or elongating deal cycles could cap the upside.

Analyst Opinions

The prevailing view across recent institutional commentary is constructive, with the majority leaning bullish on Atlassian Corporation PLC into fiscal Q2 2026. Analysts highlight durable double-digit revenue growth supported by cloud migrations, strong gross margin structure, and improving operating leverage, evidenced by last quarter’s upside in EBIT and adjusted EPS. Prominent institutional previews call for continued strength in enterprise demand and premium tier adoption, projecting revenue near USD 1.54 billion and adjusted EPS around USD 1.14, while noting the potential for upside if migration velocity accelerates. Bullish perspectives emphasize the consistency of subscription growth and the likelihood that Atlassian’s collaboration suite remains embedded in customer workflows, supporting high attach rates and multi-product expansion. The constructive stance focuses on management’s track record of execution, the strategic importance of cloud standardization across large accounts, and the capacity to sustain gross margin around the mid-80.00% level, which collectively underpin confidence in the near-term earnings trajectory.