This article first appeared on GuruFocus .
Atlassian ( NASDAQ:TEAM ) shares dropped 14.18% to $157.29 at 9:35 a.m. ET on Friday, November 6, after the software maker behind Jira and Confluence guided fiscal 2027 total revenue growth of about 13.75%. The quarter itself was strong. The outlook was the problem.
First-quarter fiscal 2027 revenue rose 24% to $1.77 billion, cloud revenue climbed 31% to $1.30 billion, and the non-GAAP operating margin widened to 32% from 23%. Free cash flow reached $463 million. But management expects Data Center revenue to shrink about 16% this fiscal year, and it guided the full-year non-GAAP operating margin to about 25.5%, below the quarter just reported. Second-quarter revenue guidance of $1.825 billion to $1.835 billion implies only modest sequential gains.
The GuruFocus chart shows a GF Score of 78/100, with Growth and Momentum leading, while Profitability and GF Value are weaker. Shares now trade about 46% below a GF Value of $290.82, a model gap that could tempt value hunters, but a GF Value discount is not a guarantee of upside. The next test is whether cloud growth holds near 26% as the Data Center business shrinks.
