Atlassian (NASDAQ:TEAM) Announces Earnings Results, Beats Estimates By $0.10 EPS

Atlassian (NASDAQ:TEAM) announced its quarterly earnings data on Thursday. The technology company reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.12 by $0.10, FiscalAI reports. The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.54 billion. Atlassian had a negative return on equity of 6.60% and a negative net margin of 3.29%.The company’s revenue was up 23.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.96 earnings per share.

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

• Atlassian reported major financial milestones — surpassed $6B ARR, delivered its first-ever $1B cloud revenue quarter (+26% YoY), grew RPO 44% YoY to $3.8B, and nearly doubled year-over-year the number of deals >$1M ACV.
• AI is accelerating engagement and expansion — Rovo passed 5M monthly active users, customers using AI code generation show ~5% higher Jira task creation/MAU/seat expansion, and the Teamwork Collection exceeded 1M seats in under nine months.
• Management reiterated a seat-based pricing philosophy (with hybrid consumption options), saying they can manage AI costs and are seeing gross‑margin improvements, but pricing/consumption dynamics remain an area of market scrutiny.
• Atlassian reaffirmed its midterm targets (20%+ revenue CAGR and 25%+ non‑GAAP operating margin by FY27) but warned Data Center revenue will be “down meaningfully” next year, posing a near-term headwind to total revenue.
• Service Collection (JSM and related offerings) showed strong momentum — >65,000 customers, enterprise growth >60% YoY, two-thirds of customers using it for non‑IT use cases, and rising adoption of asset management and agentic workflows.

Atlassian Price Performance

Shares of TEAM stock opened at $94.72 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.72. Atlassian has a 12-month low of $92.32 and a 12-month high of $326.00. The firm has a fifty day moving average of $144.50 and a 200-day moving average of $158.46. The firm has a market capitalization of $24.92 billion, a price-to-earnings ratio of -131.55, a price-to-earnings-growth ratio of 15.24 and a beta of 0.88.

Insider Buying and Selling at Atlassian

In other Atlassian news, CEO Michael Cannon-Brookes sold 7,665 shares of the firm’s stock in a transaction that occurred on Thursday, November 13th. The shares were sold at an average price of $153.77, for a total transaction of $1,178,647.05. Following the sale, the chief executive officer directly owned 237,615 shares in the company, valued at approximately $36,538,058.55. This trade represents a 3.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, President Anutthara Bharadwaj sold 9,847 shares of Atlassian stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $152.46, for a total transaction of $1,501,273.62. Following the completion of the transaction, the president directly owned 242,092 shares in the company, valued at approximately $36,909,346.32. The trade was a 3.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 566,379 shares of company stock valued at $82,730,694. Company insiders own 36.66% of the company’s stock.

Institutional Trading of Atlassian

Several hedge funds and other institutional investors have recently modified their holdings of the company. Sivia Capital Partners LLC grew its holdings in shares of Atlassian by 27.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,873 shares of the technology company’s stock valued at $380,000 after acquiring an additional 404 shares in the last quarter. Lido Advisors LLC boosted its position in Atlassian by 44.3% during the third quarter. Lido Advisors LLC now owns 2,921 shares of the technology company’s stock valued at $467,000 after purchasing an additional 897 shares during the last quarter. Boothbay Fund Management LLC bought a new position in Atlassian in the third quarter valued at approximately $352,000. Tower Research Capital LLC TRC grew its stake in Atlassian by 78.7% in the third quarter. Tower Research Capital LLC TRC now owns 3,097 shares of the technology company’s stock valued at $495,000 after purchasing an additional 1,364 shares in the last quarter. Finally, Optimist Retirement Group LLC grew its stake in shares of Atlassian by 36.8% in the second quarter. Optimist Retirement Group LLC now owns 1,445 shares of the technology company’s stock valued at $293,000 after buying an additional 389 shares in the last quarter. Institutional investors and hedge funds own 94.45% of the company’s stock.

More Atlassian News

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Q2 beat — Atlassian reported $1.22 EPS vs. $1.12 expected and revenue of $1.59B (vs. $1.54B est.), with revenue up ~23% y/y, a near-term fundamental positive for growth momentum. Atlassian Q2 Earnings Surpass Expectations
• Positive Sentiment: Management raised its fiscal 2026 revenue forecast, citing resilient enterprise spending and accelerating AI adoption — supports the company’s multi-quarter revenue outlook. Atlassian Raises Annual Revenue Forecast (Reuters)
• Positive Sentiment: Company targets 20%+ annual revenue growth through FY27 and cites record cloud revenue and AI integrations — a constructive strategic signal if execution continues. Seeking Alpha: Growth Target
• Positive Sentiment: Unusual options activity — a spike to ~14,021 calls purchased (≈51% above normal), which can indicate tactical bullish positioning by traders.
• Neutral Sentiment: Analysts trimmed price targets but kept favorable ratings (Morgan Stanley, Mizuho, BTIG among others) — reduces near-term implied upside but preserves buy/overweight bias. Benzinga: Analyst Target Changes
• Negative Sentiment: Insider selling — directors/co‑founders disclosed multiple recent sales (7,665 shares each), a visible negative for investor sentiment and a factor pressuring the stock. SEC Filing: Insider Sales
• Negative Sentiment: Cantor Fitzgerald and some other brokers cut price targets sharply (e.g., Cantor to $146), and sector-wide AI fears are amplifying downside pressure. Cantor Fitzgerald Target Cut
• Negative Sentiment: Market reaction: coverage notes shares dipped despite the beat as investors worry cloud growth may slow and AI competition/feature rollouts elsewhere increase volatility. Investing.com: Shares Dip

Wall Street Analysts Forecast Growth

TEAM has been the subject of several research reports. Macquarie Infrastructure reduced their price target on Atlassian from $250.00 to $240.00 and set an “outperform” rating for the company in a report on Monday, November 3rd. Morgan Stanley decreased their price target on shares of Atlassian from $320.00 to $290.00 and set an “overweight” rating for the company in a report on Friday. TD Cowen dropped their price target on Atlassian from $205.00 to $175.00 and set a “hold” rating on the stock in a research report on Tuesday, January 20th. Zacks Research upgraded shares of Atlassian from a “strong sell” rating to a “hold” rating in a research note on Monday, November 3rd. Finally, The Goldman Sachs Group restated a “buy” rating and set a $260.00 price target on shares of Atlassian in a research note on Friday, October 31st. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Atlassian presently has a consensus rating of “Moderate Buy” and a consensus target price of $191.32.

About Atlassian

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.