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

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

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 on Friday, hitting $149.07. 20,075,247 shares of the stock traded hands, compared to its average volume of 4,196,062. 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 firm has a market capitalization of $37.83 billion, a P/E ratio of -784.58, a P/E/G ratio of 7.91 and a beta of 1.05. The stock’s 50 day moving average is $93.01 and its two-hundred day moving average is $86.92. Atlassian has a 1 year low of $56.01 and a 1 year high of $184.00.

Insider Activity at Atlassian

In other Atlassian news, CRO Brian Duffy sold 3,000 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $89.71, for a total transaction of $269,130.00. Following the transaction, the executive owned 227,691 shares of the company’s stock, valued at $20,426,159.61. This represents a 1.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CFO James Chuong sold 8,838 shares of the firm’s stock in a transaction on 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 owned 288,272 shares in the company, valued at $25,295,868. This trade represents a 2.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 20,041 shares of company stock valued at $1,801,069 over the last ninety days. 36.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Atlassian

Several large investors have recently added to or reduced their stakes in TEAM. Snowden Capital Advisors LLC lifted its holdings in shares of Atlassian by 1.6% during the second quarter. Snowden Capital Advisors LLC now owns 4,464 shares of the technology company’s stock valued at $907,000 after acquiring an additional 71 shares during the period. ICICI Prudential Asset Management Co Ltd grew its stake in Atlassian by 5.6% during the fourth quarter. ICICI Prudential Asset Management Co Ltd now owns 2,696 shares of the technology company’s stock worth $437,000 after buying an additional 143 shares during the last quarter. Lido Advisors LLC increased its holdings in shares of Atlassian by 5.1% during the fourth quarter. Lido Advisors LLC now owns 3,070 shares of the technology company’s stock worth $492,000 after buying an additional 149 shares in the last quarter. Captrust Financial Advisors raised its stake in shares of Atlassian by 1.1% in the second quarter. Captrust Financial Advisors now owns 14,002 shares of the technology company’s stock valued at $2,844,000 after acquiring an additional 156 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted 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 worth $42,000 after acquiring an additional 161 shares in the last quarter. 94.45% of the stock is currently owned by hedge funds and other institutional investors.

More Atlassian News

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.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on TEAM. KeyCorp boosted their price target on Atlassian from $115.00 to $185.00 and gave the stock an “overweight” rating in a research note on Friday. TD Cowen raised their price objective on Atlassian from $105.00 to $145.00 and gave the company a “hold” rating in a research note on Friday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Atlassian in a report on Friday, July 17th. UBS Group reiterated a “neutral” rating and set a $160.00 target price on shares of Atlassian in a research report on Friday. Finally, Citigroup lowered their target price on Atlassian from $160.00 to $110.00 and set a “buy” rating on the stock in a report on Friday, May 1st. Twenty-three analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $172.88.

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.