Atlassian Corporation - Class A NASDAQ:TEAM Price, Chart, News & Insight

NASDAQ:TEAM

Atlassian Stock Soars 30% as Earnings, Margins and AI Momentum Impress Investors

Atlassian (NASDAQ: TEAM) shares surged about 30% Friday after the enterprise software company delivered a strong fiscal fourth-quarter report, highlighted by accelerating cloud growth, a dramatic improvement in profitability and rapidly expanding adoption of its AI infrastructure.

Quarterly revenue increased 28% year over year to $1.77 billion, while cloud revenue grew even faster at 31% to $1.21 billion. Subscription annual recurring revenue reached $6.61 billion, up 23%, and remaining performance obligations jumped 44% to $4.82 billion.

The combination of strong growth and sharply improving margins appears central to Friday's outsized rally.

Atlassian Swings to Strong GAAP Profitability

Atlassian's profitability improved dramatically during the quarter.

GAAP operating income reached $211 million, compared with a $28 million operating loss a year earlier. That translated into a 12% operating margin versus negative 2% last year.

GAAP net income was $139 million, or $0.55 per diluted share, compared with a $24 million loss, or $0.09 per share, in the prior-year quarter.

On an adjusted basis, the improvement was even stronger. Non-GAAP operating income jumped to $636 million from $336 million, while operating margin expanded to 36% from 24%. Adjusted EPS nearly doubled to $1.87 from $0.98.

Free cash flow reached $475 million, representing a 27% margin.

For investors evaluating whether high-growth software companies can convert revenue expansion into meaningful profitability, those numbers represent a significant improvement in Atlassian's earnings profile.

AI Adoption Emerges as Major TEAM Catalyst

Atlassian's AI strategy also appears to be gaining meaningful traction.

The company's MCP server and Teamwork Graph CLI surpassed 1 million monthly active users, more than doubling in a single quarter and becoming Atlassian's fastest-growing integration surface to date.

The tools allow AI agents — including ChatGPT, Claude and Cursor — to connect securely to customer work and organizational context across Atlassian and third-party applications.

Atlassian is positioning its Teamwork Graph as a contextual layer for enterprise AI agents, potentially giving the company a significant role as businesses move from standalone generative AI toward agentic workflows.

Fiscal 2027 Outlook Points to Continued Cloud Growth

For fiscal 2027, Atlassian expects total revenue growth of approximately 13%, subscription ARR growth of around 18%, and cloud revenue growth of approximately 25.5%. Data Center revenue is expected to decline 17% as customers continue migrating toward cloud products.

For the fiscal first quarter, management expects revenue of $1.705 billion to $1.715 billion and cloud revenue growth of approximately 28.5%.

Another notable confidence signal came directly from CEO and co-founder Mike Cannon-Brookes, who announced plans to establish a trading plan allowing up to $250 million of open-market purchases of Atlassian shares.

Why Is TEAM Stock Up 30% Today?

Friday's extraordinary rally appears to reflect several catalysts arriving simultaneously: 28% quarterly revenue growth, accelerating 31% cloud growth, 44% RPO growth, sharply higher margins, strong free cash flow and tangible evidence that Atlassian's AI products are gaining adoption.

The transition from a 2% GAAP operating loss margin to a positive 12% margin is particularly significant. Atlassian demonstrated that it can expand profitability rapidly while still producing strong cloud growth.

The planned $250 million founder share-purchase program provides another bullish signal at a time when investors are reassessing the company's growth and AI prospects.

The fiscal 2027 outlook does imply slower overall growth, but Friday's 30% rally suggests investors are focusing on the quality of Atlassian's cloud growth and improving operating leverage.

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Global Finance News 08-07-26

Atlassian Soars 24% as Earnings Reveal Explosive Growth and AI-Driven Momentum

Shares of Atlassian Corporation surged 24%, as investors reacted to a standout fiscal third-quarter 2026 earnings report that showcased strong revenue growth, accelerating cloud adoption, and expanding profitability on an adjusted basis.

The company reported revenue of $1.79 billion, up an impressive 32% year-over-year, driven by continued enterprise demand and larger, longer-term customer commitments. Cloud revenue reached $1.13 billion, rising 29%, highlighting the success of Atlassian’s transition toward a cloud-first model.

Forward visibility also strengthened significantly, with remaining performance obligations climbing 37% to nearly $4.0 billion, signaling robust future revenue potential.

Profitability trends were mixed at the headline level but strong underneath. On a GAAP basis, the company reported a 3% operating loss margin, largely due to $223 million in restructuring charges. However, excluding these items, non-GAAP operating margin expanded sharply to 34%, up from 26% a year earlier, reflecting strong operating leverage.

Earnings followed a similar pattern. While GAAP net loss widened, adjusted net income surged to $456.5 million, with adjusted EPS rising to $1.75 from $0.97, demonstrating substantial core earnings growth.

Cash generation remained a major highlight, with free cash flow reaching $561 million and a strong 31% margin, reinforcing the company’s ability to convert growth into cash.

A key driver behind investor enthusiasm is Atlassian’s aggressive push into **AI-powered workflows**. The company introduced AI agents within Jira, expanded integrations across major platforms, and enhanced automation capabilities across its product suite, positioning itself at the center of enterprise productivity and developer ecosystems.

CEO Mike Cannon-Brookes emphasized strong momentum across Atlassian’s strategic priorities, particularly enterprise expansion, AI innovation, and its “System of Work” platform, which continues to gain traction globally.

Looking ahead, Atlassian expects full-year 2026 revenue growth of around 24%, with cloud revenue growth exceeding 26%, alongside sustained high margins on a non-GAAP basis.

Overall, the combination of rapid top-line growth, strong cloud momentum, expanding margins, and AI-driven product innovation appears to have significantly boosted investor con

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The Investor 05-01-26

Atlassian announced an expanded partnership with Google Cloud to enhance AI capabilities for enterprise teams through deeper integration of its Rovo platform with Google’s Gemini models.

The collaboration will enable users to access AI-powered agents directly within tools such as Google Workspace and Atlassian applications, improving workflow automation, collaboration, and productivity. It also includes the use of advanced AI infrastructure and models to support large-scale training and real-time applications.

The companies aim to accelerate adoption of “agentic AI,” allowing organizations to streamline operations and deploy intelligent, cross-platform workflows more efficiently.

Source: Business Wire

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The Investor 04-24-26

Atlassian has introduced new AI-powered features in its Confluence platform, aimed at transforming how teams convert written content into visual and interactive formats.

The centerpiece is “Remix,” now in open beta, which allows users to turn text, tables, or full documents into charts, infographics, scorecards, and presentation-ready summaries. The feature maintains a single source of truth by linking all generated visuals directly to the original content.

Atlassian also launched pre-built AI agents that integrate Confluence with third-party tools such as Lovable, Replit, and Gamma. These agents enable users to convert content into prototypes, applications, or presentations without manual copying or custom integrations.

The new capabilities are powered by Atlassian’s open ecosystem and Model Context Protocol (MCP), designed to securely transfer content and context across platforms. The move reflects growing demand for AI tools that streamline workflows and accelerate product development by reducing friction between ideas and execution.
Business Wire

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WS Investor 04-08-26

Atlassian Corporation launches AI agents in Jira to scale human-AI collaboration

Atlassian announced the open beta of agents in Jira, enabling teams to assign tasks to Atlassian Rovo and third-party AI agents directly within Jira workflows. The new capability allows users to @mention agents in comments, integrate them into project workflows, and manage agent-driven work within existing permission structures, audit trails, and approval processes.

The company also expanded its investment in Model Context Protocol (MCP), reinforcing an open ecosystem that allows enterprises to connect AI agents with tools and data across platforms. Atlassian introduced MCP skills within Rovo to connect with third-party applications such as Amplitude, Box, Canva, and Figma, and launched the Rovo MCP Server in general availability, providing secure connectivity between AI clients and Jira and Confluence.

Atlassian said the move strengthens its position as a central platform for orchestrating work across humans and AI agents at enterprise scale, with strong adoption among large enterprise customers.

Source: Business Wire

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The Investor 02-25-26

Atlassian announced that its cloud apps—including Jira, Confluence, and Jira Service Management—are now available on AWS Marketplace, marking a major milestone in its strategic partnership with Amazon. The listing allows customers in over 150 countries to discover, purchase, and manage Atlassian cloud products directly through AWS Marketplace, streamlining procurement and accelerating cloud migration.

The expanded collaboration includes deeper product integrations, improved performance through AWS Graviton, and joint cloud-migration initiatives. Atlassian will soon offer developers access to Amazon Bedrock-powered generative AI models through its Forge platform.

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European Investor 12-02-25

Atlassian Reports Strong Q1 FY2026 Results with 21% Revenue Growth Driven by Cloud and AI Momentum

Atlassian Corporation (NASDAQ: TEAM) reported first-quarter fiscal 2026 revenue of $1.43 billion, a 21% year-over-year increase, fueled by robust enterprise adoption and accelerating cloud migration. Cloud revenue rose 26% to $998 million, reflecting growing demand for the company’s AI-driven collaboration solutions.

The company posted a GAAP operating loss of $96.3 million (–7% margin), which included $55.7 million in restructuring charges, while non-GAAP operating margin stood at 23%. Net loss narrowed to $51.9 million ($0.20 per share) from $123.8 million ($0.48 per share) a year earlier. Atlassian ended the quarter with $2.8 billion in cash and marketable securities and generated $115 million in free cash flow.

CEO Mike Cannon-Brookes credited the company’s “relentless pace of AI innovation,” highlighting over 3.5 million monthly active AI users, up 50% quarter-over-quarter. CFO Joe Binz emphasized that strong enterprise sales and rising remaining performance obligations (RPO of $3.3 billion, up 42%) demonstrate durable long-term growth potential, supported by investments in AI, enterprise solutions, and system-of-work integration.

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Global Finance News 10-30-25

Atlassian announced it has entered into a definitive agreement to acquire DX, a leader in engineering intelligence, for approximately $1 billion in cash and restricted stock. The deal, expected to close in the second quarter of fiscal 2026, aims to help enterprises measure and improve returns on AI investments by combining DX’s developer productivity insights with Atlassian’s AI-powered System of Work, which includes tools like Jira, Bitbucket, and Compass.

The acquisition will give Atlassian customers deeper visibility into how AI impacts developer efficiency, satisfaction, and system health. Atlassian CEO Mike Cannon-Brookes emphasized that while adopting AI is easy, proving its value is harder, and this partnership will help enterprises gain actionable insights. DX’s existing customer base, which already overlaps heavily with Atlassian’s, is expected to benefit from broader integration and scale.

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The Investor 09-19-25

Atlassian (NASDAQ: TEAM) has agreed to acquire The Browser Company of New York, the developer of the Arc and Dia browsers, in a $610 million cash transaction. The deal, expected to close in Q2 FY2026, aims to create an AI-powered browser optimized for knowledge work.

Atlassian plans to position Dia as the “AI browser for work,” integrating SaaS workflows, AI-driven context, and personal work memory to improve productivity and collaboration. With its large customer base of over 300,000 organizations, including 80% of the Fortune 500, Atlassian intends to scale Dia broadly while leveraging its existing AI expertise.

The Browser Company’s team and products will join Atlassian to accelerate innovation, but the acquisition is not expected to materially impact financials in FY2026 or FY2027.

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The Investor 09-04-25

Atlassian has announced a multi-year partnership with Google Cloud to integrate AI-powered productivity tools and expand its multi-cloud strategy. Under the agreement, Atlassian apps including Jira, Confluence, and Loom will run on Google Cloud’s AI-optimized infrastructure and be available on Google Cloud Marketplace, allowing customers to purchase subscriptions with existing Google Cloud budgets.

The collaboration will also integrate Atlassian’s AI platform, Rovo, with Google’s Gemini models and Vertex AI, enabling the creation of intelligent agents with advanced reasoning, multimodal capabilities, and seamless connectivity across Google Workspace and Atlassian tools. This aims to enhance workflows, unify project data, and boost productivity through AI-powered actions across platforms.

Executives from both companies highlighted the partnership as a step toward accelerating cloud adoption, strengthening security, and delivering innovative AI-driven collaboration tools for enterprises worldwide.

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WS News 08-08-25

09-05-25European Investor

09-04-25The Investor

04-23-25WS News

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