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

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

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 Price Performance

Shares of TEAM stock traded up $38.90 during trading hours on Friday, reaching $149.07. The company’s stock had a trading volume of 20,075,247 shares, compared to its average volume of 4,196,062. Atlassian has a fifty-two week low of $56.01 and a fifty-two week high of $184.00. The firm’s 50 day simple moving average is $93.01 and its 200-day simple moving average is $86.92. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 1.13. The company has a market capitalization of $37.83 billion, a price-to-earnings ratio of -784.58, a PEG ratio of 7.91 and a beta of 1.05.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on TEAM shares. Cantor Fitzgerald restated an “overweight” rating and issued a $126.00 price target on shares of Atlassian in a research note on Monday. Canaccord Genuity Group decreased their target price on shares of Atlassian from $185.00 to $150.00 and set a “buy” rating on the stock in a research report on Wednesday, April 15th. Mizuho dropped their price target on shares of Atlassian from $185.00 to $145.00 and set an “outperform” rating for the company in a research report on Tuesday, April 14th. Jefferies Financial Group reissued a “buy” rating and set a $200.00 price target on shares of Atlassian in a research report on Friday. Finally, Raymond James Financial set a $180.00 price objective on Atlassian in a report on Friday. Twenty-three analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Atlassian has a consensus rating of “Moderate Buy” and a consensus target price of $172.88.

Key Stories 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 Buying and Selling at Atlassian

In related news, CFO James Chuong sold 8,838 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $87.75, for a total value of $775,534.50. Following the sale, the chief financial officer directly owned 288,272 shares of the company’s stock, valued at $25,295,868. This trade represents a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available 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 dated Friday, June 12th. The shares were sold at an average price of $89.71, for a total value of $269,130.00. Following the completion of the transaction, the executive owned 227,691 shares in the company, valued at approximately $20,426,159.61. This represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 20,041 shares of company stock valued at $1,801,069. 36.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Atlassian

Institutional investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. boosted its position in Atlassian by 447.2% in the first quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company’s stock valued at $42,000 after buying an additional 161 shares in the last quarter. Garton & Associates Financial Advisors LLC bought a new position in shares of Atlassian in the 4th quarter valued at $32,000. Summit Securities Group LLC bought a new position in shares of Atlassian in the 4th quarter valued at $42,000. Litman Gregory Wealth Management LLC acquired a new stake in shares of Atlassian during the 4th quarter valued at $42,000. Finally, State of Wyoming boosted its holdings in shares of Atlassian by 59.7% during the 2nd quarter. State of Wyoming now owns 444 shares of the technology company’s stock valued at $90,000 after acquiring an additional 166 shares in the last quarter. 94.45% of the stock is currently owned by institutional investors and hedge funds.

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.