Atlassian (NASDAQ:TEAM) Posts Quarterly Earnings Results, Beats Expectations By $0.37 EPS

Atlassian (NASDAQ:TEAM) announced its quarterly earnings results on Thursday. The technology company reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.50 by $0.37, FiscalAI reports. Atlassian had a positive return on equity of 20.07% and a negative net margin of 0.82%.The company had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same period in the prior year, the company earned $0.98 earnings per share. The firm’s revenue was up 27.6% on a year-over-year basis.

Here are the key takeaways from Atlassian’s conference call:

• Strong FY26 performance: Revenue grew 28% to $1.8 billion, cloud revenue increased 31% to $1.2 billion, RPO rose 44% to $4.8 billion, and GAAP operating margin reached 12%.
• Enterprise momentum accelerated: Atlassian reported record bookings at the $1 million, $3 million, and $5 million deal levels, with customers generating more than $3 million in ARR growing over 50% year over year and those above $5 million growing over 70%.
• AI and platform adoption are driving expansion: Rovo is used by more than 80% of Fortune 500 companies, Rovo-assisted actions increased 50% sequentially, and customers adopting Rovo are growing ARR at more than twice the rate of non-adopters. Cross-selling the Teamwork and Service Collections and seat expansion were key cloud-growth drivers.
• FY27 guidance reflects increased caution: Subscription ARR growth is expected to slow to 18%, compared with 23% in Q4, due partly to lapping the DX acquisition and strong second-half FY26 growth, as well as uncertainty around macroeconomic, fiscal-policy, and geopolitical conditions.
• Profitability is expected to improve: Management guided to a 4.5% GAAP operating margin for FY27, citing disciplined hiring, resource reallocation, moderating stock-based compensation, and improved AI infrastructure efficiency while continuing to invest in AI and enterprise sales.

Atlassian Trading Up 35.3%

Shares of TEAM traded up $38.90 during trading hours on Friday, reaching $149.07. 20,075,247 shares of the company traded hands, compared to its average volume of 4,196,062. The stock’s fifty day moving average price is $93.01 and its 200 day moving average price is $86.92. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 1.13. The firm has a market cap of $37.83 billion, a price-to-earnings ratio of -784.58, a PEG ratio of 7.91 and a beta of 1.05. Atlassian has a 12-month low of $56.01 and a 12-month high of $184.00.

Key Headlines Impacting Atlassian

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Results exceeded expectations: Atlassian reported adjusted earnings of $1.87 per share, versus the $1.50 consensus estimate, while revenue rose 27.6% year over year to $1.77 billion, ahead of the $1.66 billion forecast. Atlassian beats quarterly estimates on strong cloud demand
• Positive Sentiment: Cloud and enterprise momentum supported the rally: Cloud revenue grew 31% to $1.21 billion, Data Center revenue topped estimates, and the company cited record large enterprise contracts, strong subscription demand and rising adoption of its AI-powered Rovo platform. TEAM Q4 Earnings Call Highlights AI and Enterprise Momentum
• Positive Sentiment: Fiscal 2027 guidance was viewed favorably: Management’s cloud revenue outlook exceeded expectations, and first-quarter revenue guidance of approximately $1.7 billion was above or in line with consensus, reinforcing confidence in continued growth. Atlassian earnings beat drives 30% stock surge
• Positive Sentiment: Analyst support strengthened: Bank of America upgraded TEAM to Buy with a $175 target, while BMO raised its target to $175 and Oppenheimer lifted its target to $200 with an Outperform rating. Unusually heavy call-option activity also reflected bullish near-term positioning.
• Neutral Sentiment: Atlassian’s results were interpreted as a potential turning point for software stocks broadly, suggesting investors may again be rewarding solid fundamentals despite AI-disruption concerns. Software Stocks Trade Like It’s 2022 After Atlassian Leads Earnings Rally
• Negative Sentiment: The company still faces external uncertainty, and the sharp rebound leaves TEAM trading near the upper end of its recent range, increasing the risk of profit-taking if cloud growth or AI adoption slows.

Insider Transactions at Atlassian

In other news, CFO James Chuong sold 8,838 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $87.75, for a total transaction of $775,534.50. Following the transaction, the chief financial officer directly owned 288,272 shares of the company’s stock, valued at approximately $25,295,868. This trade represents a 2.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Brian Duffy sold 3,000 shares of Atlassian stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $89.71, for a total transaction of $269,130.00. Following the sale, the executive directly owned 227,691 shares of the company’s stock, valued at $20,426,159.61. This represents a 1.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 20,041 shares of company stock valued at $1,801,069 in the last quarter. 36.66% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Garton & Associates Financial Advisors LLC bought a new position in shares of Atlassian during the 4th quarter worth $32,000. Litman Gregory Wealth Management LLC purchased a new stake in Atlassian in the fourth quarter worth about $42,000. Summit Securities Group LLC purchased a new position in Atlassian during the 4th quarter valued at about $42,000. Geneos Wealth Management Inc. raised its holdings in shares of Atlassian by 447.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company’s stock valued at $42,000 after purchasing an additional 161 shares in the last quarter. Finally, State of Wyoming lifted its position in shares of Atlassian by 59.7% in the 2nd quarter. State of Wyoming now owns 444 shares of the technology company’s stock worth $90,000 after purchasing an additional 166 shares during the period. 94.45% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. TD Cowen boosted their target price on shares of Atlassian from $105.00 to $145.00 and gave the stock a “hold” rating in a report on Friday. Sanford C. Bernstein restated an “outperform” rating on shares of Atlassian in a research report on Monday, June 29th. Guggenheim boosted their target price on Atlassian from $115.00 to $165.00 and gave the company a “buy” rating in a research report on Friday. Morgan Stanley raised their price target on Atlassian from $120.00 to $180.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Mizuho cut their price objective on shares of Atlassian from $185.00 to $145.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 14th. Twenty-three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $172.88.

Atlassian Company Profile

Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.

Atlassian’s product portfolio centers on tools designed to help teams plan, build and support software and business processes.