Atlassian (TEAM) is expected to report fiscal Q2 results slightly ahead of consensus, though Wall Street is overestimating the company's longer-term data-center revenue as customers shift more quickly to the cloud, Oppenheimer said Thursday in a report.

Q2 sales are expected close to the high end of management's guidance of $1.535 billion to $1.543 billion, supported by stable demand and increased enterprise sales focus, Oppenheimer said. Q3 guidance is expected to be largely in line, though margin commentary may be "cautious" given recent acquisitions and higher sales investment, the report said.

Fiscal 2027 data-center revenue may ease, versus consensus expectations for 7.9% growth, Oppenheimer said, citing a shrinking renewal base and accelerated revenue recognition that makes year-over-year comparisons more difficult.

Despite near-term volatility tied to cloud migration and AI-driven sentiment swings, Atlassian's long-term outlook remains strong, supported by deeper enterprise engagement and multiyear cloud growth from products including Jira Service Management, Teamwork Collections, and Rovo, the report said.

Oppenheimer maintained its outperform rating on Atlassian stock with a price target of $275.

Q2 results are due Feb. 5.

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