Atlassian Shares Fall More Than 17 Percent After Hours as Subscription Growth Forecast Slows

Atlassian shares fell more than 17 percent in after hours trading on Thursday, after the software company forecast slower subscription growth even as its latest quarterly results beat analyst estimates.

Results beat estimates

For the quarter ended September 30, 2026, Atlassian reported adjusted earnings of 1.65 dollars per share, up from 1.04 dollars per share a year earlier. Revenue reached 1.772 billion dollars, up 24 percent from a year earlier. Analysts had expected earnings of 1.43 dollars per share on revenue of 1.71 billion dollars, according to SiliconANGLE.

On an unadjusted basis, the company reported net income of 91 million dollars, or 35 cents per share. SiliconANGLE reported that this was the second straight profitable quarter for Atlassian on that basis.

StockStory put the numbers in similar terms. It reported revenue of 1.77 billion dollars against a consensus estimate of 1.71 billion dollars, and non-GAAP profit of 1.65 dollars per share, 15.7 percent above consensus. StockStory said the shares plunged 17.6 percent to 150.71 dollars immediately after the report.

The forecast that moved the stock

The drop followed the outlook for subscription growth. Subscription annual recurring revenue stood at 6.812 billion dollars at the end of September, up 22.5 percent. Atlassian expects that growth rate to slow to about 18.5 percent by the end of its fiscal year.

Seeking Alpha reported that the shares fell more than 15 percent despite results and second quarter guidance that topped market expectations. The reaction showed investors weighing the slower subscription forecast more heavily than the earnings beat.

For the second quarter, Atlassian expects revenue of 1.825 billion to 1.835 billion dollars. That range sits a little ahead of the 1.82 billion dollars analysts had forecast. The company expects cloud revenue growth of about 27 percent in the quarter.

Investors also had the subscription figures in front of them: growth of 22.5 percent at the end of September, and about 18.5 percent expected by fiscal year end, a gap of four points between the current rate and the rate the company expects to finish the year on.

The report closed a busy after hours earnings session on November 5, 2026. Atlassian beat on both earnings and revenue, guided slightly ahead for the next quarter, and still lost more than a sixth of its market value in extended trading because the growth rate for its subscription business is set to cool.