TEAM

Chief Accounting Officer Gene Liu reported a sale of 1,125 shares of Class A Common Stock in Atlassian Corporation (NASDAQ:TEAM) at $175 per share on August 19, 2026, according to a recent SEC Form 4 filing. Transaction value based on SEC Form 4 weighted average sale price ($175.00); post-transaction value based on August 19, 2026 market close ($174.23). What prompted this disposition?The sale was conducted pursuant to a Rule 10b5-1 trading plan adopted by Gene Liu on December 5, 2025, which allows insiders to execute pre-arranged trades to satisfy personal financial objectives without violating insider trading laws. What remains of the insider's total equity position?Following the sale, the executive retains 56,927 total shares including both direct and indirect holdings, representing a market valuation of $9.92 million based on the August 19, 2026 market close. How has the stock performed relative to the transaction price?Atlassian shares were priced at $174.23 at the market close on the day of the transaction, and the security has generated a 5% return over the 12 months ending August 19, 2026. Atlassian develops and distributes a comprehensive suite of software solutions including Jira Software, Jira Work Management, Confluence, and Trello, which serve as core platforms for project management, team collaboration, and knowledge management across technical and business organizations. The company operates a subscription-based software-as-a-service (SaaS) business model, generating recurring revenue through cloud-hosted solutions and on-premise licensing arrangements that scale with customer adoption and organizational growth. Atlassian serves a diverse customer base spanning software development teams, enterprise organizations, and business teams globally, with particular strength in the developer and technical operations segments where its products have achieved significant market penetration. Atlassian Corporation is a global leader in team collaboration and project management software. The company's platform-based approach enables customers to integrate multiple solutions across their organizations, creating a sticky ecosystem that drives customer lifetime value and retention. Atlassian's competitive advantages include its established brand recognition within developer communities, extensive product integration capabilities, and a large installed base that provides opportunities for cross-selling and upsell expansion. Chief Accounting Officer Gene Liu's sale of Atlassian stock on Aug. 19 came not long after the company's Aug. 6 earnings report for its fiscal fourth quarter, ended June 30, sent shares skyward by 30%. Even so, the disposition was a non-discretionary transaction executed as part of a pre-arranged Rule 10b5-1 trading plan. Post-transaction, Liu retains a sizable equity stake of 56,807 directly held shares while his spouse has another 120 shares. This ensures his continued alignment with shareholder interests. Atlassian stock rose after fiscal Q4 earnings thanks to strong results. The company reported a 28% year-over-year increase in sales to $1.8 billion. This growth helped it achieve Q4 net income of $139.1 million, an impressive reversal from the net loss of $23.9 million in the prior year. Atlassian's share price took a beating earlier in 2026 due to the widespread sell-off of software stocks called the SaaSpocalypse, where Wall Street investors feared artificial intelligence would take business away from SaaS enterprises. The company's Q4 results showed Atlassian remains resilient in the face of AI. Before you buy stock in Atlassian, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Atlassian wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 24, 2026. Robert Izquierdo has positions in Atlassian. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy. Atlassian's Chief Accounting Officer Sells Over 1,000 Shares as the Stock Surges 30% After Earnings was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Head of Investor Relations - Martin Lam Chief Executive Officer and Co-Founder - Michael Cannon-Brookes Chief Financial Officer - James Chuong Operator: Good afternoon, and thank you for joining Atlassian's Earnings Conference Call for the Fourth Quarter of Fiscal Year 2026. As a reminder, this conference call is being recorded and will be available for replay on the Investor Relations section of Atlassian's website following this call. I will now hand the call over to Martin Lam, Atlassian's Head of Investor Relations. Martin Lam: Welcome to Atlassian's Fourth Quarter Fiscal Year 2026 Earnings Call. Thank you for joining us today. On the call with me today, we have Atlassian's CEO and Co-Founder, Mike Cannon-Brookes; and Chief Financial Officer, James Chuong. Earlier today, we published a shareholder letter and press release with our financial results and commentary for our fourth quarter of fiscal year 2026. The shareholder letter is available on the Investor Relations section of our website, where you will also find other earnings-related materials, including the earnings press release and supplemental investor data sheet. As always, our shareholder letter contains management's insight and commentary for the quarter. So during the call today, we'll have a brief opening remarks and then focus our time on Q&A. This call will include forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made, and we undertake no obligation to update or revise such statements should they change or cease to be current. Further information on these and other factors that could affect our business performance and financial results is included in filings we make with the Securities and Exchange Commission from time to time, including the section titled Risk Factors and our most recently filed annual and quarterly reports. During today's call, we will also discuss non-GAAP financial metrics. These non-GAAP financial measures are in addition to and are not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures is available in our shareholder letter, earnings release and investor data sheet on the Investor Relations section of our website. We'd like to allow as many of you to participate in Q&A as possible. Out of respect for others on the call, we'll take 1 question at a time. With that, I'll turn the call over to Mike for opening remarks. Michael Cannon-Brookes: Thank you all for joining us today. As you've already read in our shareholder letter, Q4 was another outstanding quarter, capping off an incredible fiscal year for Atlassian. Total revenue grew 28% to $1.8 billion. Cloud revenue surged to $1.2 billion as growth accelerated again, up 31% year-over-year. RPO grew 44% year-over-year to $4.8 billion, and we delivered a GAAP operating margin of 12%. We are firing across all of our strategic priorities, enterprise the system of work and AI, all while driving durable profitable growth. In the enterprise, we had an all-time record quarter at the $1 million level, the $3 million level and the $5 million level of deals. With our $3 million ARR customers growing over 50% year-on-year and our $5 million ARR customers growing over 70%. In the Atlassian system of work, leading enterprises like Google Cloud are using our platform to power the way their teams collaborate. And in AI, Rovo is now used by over 80% of the Fortune 500. Rovo assisted actions grew 50% over the prior quarter and Rovo adopters that is customers using Rovo continue to grow their ARR at more than twice the rate of non-adopters. When we think about what AI is doing for Atlassian, the results speak for themselves. Customers are getting real value from the AI embedded directly into their workflows, and it's translating into direct growth in our business. Customers are committing more deeply to the Atlassian platform because of the value delivered. We're seeing longer customer commitments, larger deals, stronger seat expansion, great cross-sell momentum and higher NRR. Last quarter, we recognized customers like NVIDIA and ResMed at Team '26 for how they're putting the Atlassian platform to work in the AI era to drive their businesses using the Teamwork Graph. The reason customers like these and many more are getting so much value from Atlassian comes down to a key structural advantage and that advantage is context. We believe models will keep improving and organizations will hire that intelligence by the token. A context, their internal knowledge, experience and memory is much harder for organizations to build and it cannot be hired. With the Teamwork Graph, we have 25 years of deep data about work. That's enabled us to build 1 of the best context graphs that exist for enterprise knowledge, now spanning over 200 billion objects and connections. For agents grounded in the Teamwork Graph, organizations can see up to 44% more accurate answers while consuming 48% fewer tokens. In short, it enables to get customers' results from their AI that are cheaper better and faster. Context is a clear compounding differentiator. I shared more on this in my investor [ letter ]. As you read in our shareholder letter, we're executing well on our long-term strategy from a position of strength and we're seeing this play out each quarter in our strong results. And the best is truly yet to come for Atlassian. With that, I'll pass the call to the operator for Q&A. Operator: [Operator Instructions] Your first question comes from Adam Wood from Morgan Stanley. Adam Wood: Congratulations on an amazing -- amazingly strong end to the year. I just wanted to ask about the subscription ARR framework. Obviously, it's kind of newer framework to us. And you again had another way down to year 23% growth for the fiscal year '27 guide is down to 18%. Could you maybe just help us out around the difference between par and data center within that and how much of this is kind of some moderation around new seed expansion, et cetera? And how much of it is around prudent surrounding macro and continued scaling of the enterprise go-to-market engine? James Chuong: Thanks, Adam, for the question, and welcome to the coverage. First, I would highlight that we're really pleased to see the strength that we saw in the quarter, printing ARR growth, sub-ARR growth of 23% year-over-year. When it comes to the guide, we'll continue to take a thoughtful and prudent approach here, really balancing the momentum that we're seeing in the business, the demand signals that we're getting from our customers with the uncertainty as you look out in the macro environment, fiscal policy and geopolitical landscape. And as you mentioned, this is the first time we'll be issuing ARR guidance for the full fiscal year. We're also still early in the fiscal year here. So taking a bit more of a prudent approach in that second half of FY '27. It's also worth noting that in FY '26, the ARR year-over-year growth rate benefited by approximately 1 point from the acquisition of DX at the close of November in 2025. That's our fiscal Q2. And so we'll be lapping that DX acquisition and the healthy acceleration that we saw in the second half of FY '26. And of course, we're going to still continue to scale our enterprise go-to-market sales motion as we unlock the opportunities that we see in front of us. So all I feel really good about the state of the business here. And coming off a quarter where RPO landed at 44% year-on-year NRR was north of 120%. So you're just taking a balanced and prudent approach to the guide. Operator: Your next question comes from Allan Verkhovski from U.S. Bancorp. Allan M. Verkhovski: Congrats from me as well on another blowout quarter. You've been highlighting that the Teamwork Graph is driving a 44% improvement in task efficiency and a 48% reduction in token usage. Can you elaborate on how these gains are showing up in your customers' deployments and how they're influencing customer conversations, buying behavior and overall sales cycle dynamics? Michael Cannon-Brookes: I'm sure I can take that one. Look, I can tell you I've met more than 60 customers over the last 6 weeks and 5 different countries around the world and the Teamwork Graph and AI comp in every single conversation I've had. You can see from our results, those customers are continuing to expand their use of the Teamwork Collection, either upgrading to it if they're buying single applications or adding to the seats as they move into more of their knowledge workers and across the organization. And AI and the Teamwork Graph is 1 of the biggest reasons -- it's 1 of the top 2 reasons quoted by our customers for their reason to upgrade to the cloud and to upgrade the Teamwork Collection. Now the question is why and where those results come from. Again, our applications have a lot of connections to other applications around the world, right, whether that's their CRM system, whether that's their documentation knowledge systems, we have, for about 8 years, been building the Teamwork Graph as the best way to get answers across all of those applications for their users or for their agents, which increasingly ask a lot of questions in a very short period of time. The quality of those answers is directly related to the [ clearability ] by graph. The density of that graph or the amount of information and the connections we have between it the quality of the social and collaboration group, the people information that we have. And fundamentally, the breadth of information, a number of contexts you have. We outlined a little bit of this in the shareholder letter, and there's a number of videos that show direct examples of where that gain comes from. Fundamentally, the better answers, the quality of information across all those applications we can give to your agents, the less token they consume and the less time it takes them to get to an equivalent quality enter. Customers are seeing that. It's based on all of the structured and unstructured workflows we have from those customers over the last 25 years. And for all those customers that are adopting the Teamwork Collection and the Teamwork Graph coming inside that. I frequently get asked to ask to buy the Teamwork Graph, and the answer is no, you already have it. I can often go and say you have 150 million objects and connections in your Teamwork Graph today and they're like, I do? And then we can do live demos. We can show them in real time their own graph, how it works using the CLI. It's an amazingly powerful story, especially in an age where all of the customers are asking about token costs and AI spend. It's an incredibly powerful story about how we can actually connect their organizational knowledge, their history, directly to those AI agents and give them a cost and performance, better quality answers and cheaper answers. So it's a very powerful story, 1 we've been building for a long time and very customer isn't in all those conversations. Operator: The next question comes from Ryan MacWilliams from Wells Fargo. Ryan MacWilliams: For James, I'd love to hear about the components of what drove cloud strength in the fourth quarter beyond the guidance? Like was it more customer seat additions or more Teamwork Collection? And have you thought about approaching this full year cloud guide in this uncertain environment? Was there any changes to guidance philosophy overall? James Chuong: Thanks, Ryan. No, the philosophy remains -- really remains the same here. And on the cloud revenue drivers here on the $49 million beat, maybe I'll start with the fact that and highlight the fact that the DC migrations to cloud were really in line with expectations and not a contributor to the $49 million beat. It's progressing well and in line with our expectations for FY '26 contributing approximately mid- to high single digits to the cloud growth revenue. So the 2 primary drivers here of the outperformance were really the cross-sell and seat expansion that we were seeing similar to what we saw in the cross sell side, we continue to see strong uptake in our collections across Service Collection and Teamwork Collection. Service Collection revenue growth accelerated in Q4, just a strong signal of the AI adoption that we're seeing and that Mike mentioned a little bit earlier here. In fact, we're seeing over 3x increase in Agentic automation in Service collection as customers are continuing to deploy more agents beyond IT teams in HR and legal and finance and marketing teams. So again, also great to see the recognition here being named a leader in Gartner's Magic Quadrant for conversational AI platforms for employee services. We also continue to see a lot of strong performance on the Teamwork Collection side. A good reminder that Teamwork collection is still the best vehicle for customers to adopt and unleash AI on the Atlassian platform. This is where customers are upgrading to increased Rovo credits, it's giving customers what they want in terms of the predictability as well as the ability to really load balance those tokens across their organizations, and we're seeing that drive our strong ARPU uplift here as well. So really, I think what this shows is that the customers are consolidating their collaboration stack onto the Atlassian platform, recognizing the value that the Teamwork Graph really brings here. And we do see that in the results with Teamwork customers having 4 to 5x more paid seats per instance than stand-alone Jira or Confluence customers. Operator: Your next question comes from Karl Keirstead from UBS. Karl Keirstead: A number of software stocks this week have been clocked on weaker-than-expected margin performance as their AI use goes up and their AI mix goes up and yet I'm looking at the Atlassian results and your margins despite you guys also experiencing an uptick in AI usage holding in there very well. And I'm wondering if you can explain that difference what you guys might be doing? Cost structure might be different. That might be helpful. James Chuong: I'll Start with that. Again, on the margin guide here, as Mike and I stated back in the Q3 shareholder letter, we're committed to driving durable profitable growth here and a positive GAAP operating margin target for FY '27 really sets us on that path to accelerate and expand GAAP profitability over time. And in terms of drivers, look, the big part of that is disciplined hiring approach, right? We talked about that as well as reallocating resources against some of the biggest opportunities and ROI that we see right now as well as moderating the stock-based compensation here. At the same time, we're going to continue to judiciously invest in AI and scale our enterprise sales motion where we do see a lot of customer demand right now and our ability to really kind of capture that sustained opportunity in front of us. So that goes to really help inform the 6.5% GAAP operating margin guide for Q1 and a 4.5% GAAP operating margin for FY '27 as we continue to focus on driving that profitability and growing that over time. Michael Cannon-Brookes: Yes. Look, Karl, I can add on from the gross margin in the COGS side. I would say it's a classic Atlassian story of being thoughtful and long-term thinking -- long-term orientation. We've talked for 3 years now around our AI gateway and how we think about AI. We've been blending multiple models for a multiyear period, and we're getting really, really good at it. It's a nontrivial challenge. I'll give a huge shout out to all of our R&D teams who have been working on that cost to serve question for a long time in terms of getting the best quality at the best price and the best speed. People want front fast answers from their AI across Teamwork Graph, across our enterprise search architecture, which is now the best in the world in terms of giving you answers across your knowledge estate, whether that's to a person or human or whether that's to an agent or something clearing in that manner from an AI perspective. Our ability to blend models, our ability to manage traffic costs over time is truly phenomenal. We get better at it every quarter. And you can see that we had a huge continued growth in AI usage. Again, Rovo assisted actions are up 50% quarter-on-quarter. And we've continued to do that and focus on the durable profitable growth that we've talked about for a while now. So it's a huge credit to everyone and the Atlassian tend to be able to do that. It's a lot of hard work. It's a lot of long-term thinking about the architecture that we built underneath our AI to be able to give those answers in a -- in an incredibly competitive value way to our customers as well. So not only do we give them the best answers, we give them the best answers at an incredible price, which is part of the reason you're seeing the growth in the service question, the growth in the Teamwork Collection, again, as James mentioned service question, again accelerating AI being a huge driver of that service space. Again, hearing record numbers for customer conversions from legacy service providers, et cetera. So -- and you see that with our MCP calls as well as an example, that's also nontrivial to serve cheaply to manage that over time. MCP calls were up 400% in the quarter with daily blip and people actually using the applications through the label through a mobile client. So really happy where we sit from a technological perspective of being able to deliver this and more improvements to come. Operator: Your next question comes from Gregg Moskowitz from Mizuho. Gregg Moskowitz: All right. Great. Congratulations on another tremendous result. It does seem that the Teamwork Graph, the functional improvements to Rovo, some of the other innovations to Jira, JSM, et cetera, are really resonating with your customers. In terms of my question, we've seen some market data that have indicated somewhat of a resurgence in developer hiring. Does that align with what you're seeing and hearing across your clients? And secondly, how does the rate of total paid seat expansion this quarter spanning technical users and knowledge workers? How does that compare to what you've been seeing in recent periods? James Chuong: Thanks, Gregg. I can start with that and maybe throw it over to Mike. To Ryan's question a little bit earlier about some of the cloud outperformance drivers that we saw. I talked about the cross-sell side of it, and we are seeing customers continue to go wall to wall with Atlassian here and continue to adopt higher additions and move towards Teamwork Collection, Service Collection. But I think importantly, we're seeing that growth in Teamwork Collection while also seeing continued strong seat expansion in our core Jira and Confluence offerings here. And this expansion is broad-based. Recall that roughly 2/3 of users across Jira and Confluence or knowledge workers, right? So these are non-software development teams, really sitting in HR, legal, finance and really speaks to that diversified user base that we're seeing here. And I think this growth does demonstrate that in AI-driven world, the need for collaboration at the enterprise scale, tracking, planning, managing work, it's actually increasing. And Atlassian is a mission-critical platform here, helping our customers orchestrate their teams, their agents, their workflows to really unlock that value in AI and driving real ROI and real outcomes here. And that really was the other primary driver of the outperformance that we saw in cloud, including the cross-sell that I talked about a little bit earlier. Michael Cannon-Brookes: Look, I can talk about it from a developer or engineering front in a number of different angles, Gregg. I know we've talked about this before. We've been long on record. You can look at the receipts I think there's getting more developers in the world in 5 years' time than there are today. The cost of building technology is going down. The amount of technology we're going to build is going to go up. I believe that will continue to be a good trend. We've said this for a number of years. Those are the signals we see in our customers, the ability to grow that is huge. I think secondly, the number of people building technology that we don't necessarily call developers is also growing. So we're seeing people in finance and in HR and in marketing, using a lot of these tools to build technology of various different forms. Again, we see that in our MCP server usage and our CLI usage coming across the board in lots of different functional areas, not just inside the engineering fraternity. And I think that's really important. From our perspective, again, the system of work is about helping companies to connect their technology teams with their business teams to have a single platform that allows both sides of the organization in a technology-driven organization, an organization where software is their key competitive advantage. It doesn't make them a technology company. It can be a bank, an insurance company, a health care company, a university. There are lots of companies for whom. Many organizations in the world, technology is a key competitive advantage. That is -- I believe that is a big growth cycle that we are continuing to participate in. Our strength is in connecting the technology team through the business team and I do believe that the developer hiring will continue to grow as we see in our customer signals. Operator: Next question comes from DJ Hynes from Canaccord. David Hynes: Mike, you gave us some data points around Rovo and the customers who have adopted complete more of Jira work, they create more Confluence content, they grow ARR twice as fast. How do you separate kind of the incremental impact of Rovo from the possibility that your most engaged customers are simply the earliest adopters? I'm trying to think about the durability of those trends as we get further along into the Rovo penetration story. Michael Cannon-Brookes: DJ, think about how to answer that one. I would say we see signals that is only going to be a durable trend. I don't think it's anything to do with early adopters, to be honest. This is a technology that's been adopted incredibly fast. Again, over 80% of the Fortune 500 are using Rovo. All of the customer meetings that I walk into and it's a lot, they have Rovo usage, AI usage, they're looking to expand their usage. They're looking to understand. This is a massive sort of super cycle, right? They are customers inevitably trying to work out how can I apply AI and smart and the Teamwork Graphs and agents to this workflow or that workflow, structured workflows like in Jira or a service cushion or unstructured workflows like Balloon and Confluence and Trello, and other areas where they have unstructured workflow that they believe they can make more efficient or importantly, higher quality, right? The results of that workflow can be better than they were before. I don't see that as being an early adopter problem. And every single customer I walk into, they're all learning, adopting, moving and trying. What they are also seeing is the quality of Rovo is incredibly high, right? It outperforms almost every chat tool on the market across their data, the more they connect into the Teamwork Graph, the better those results get because of our context, because of a lot of great work in R&D. So I don't think these are sort of early adopter challenges. I think it's a signal of the more people lean in, the better results they get, the better value they feel like they're getting, they're then expanding across more of their business teams, more areas of their organization or understanding that when they add Strategy Collection or they add DX or they add the Service Collection the platform, the Teamwork Graph they've built just compounds in value for them. One of the reasons Service Collection continues to grow so strongly is because of the compounding effect between the Teamwork Collection and the Service Collection. And that's a really important thing for them to understand. And I think there's as we've shown in our addressable market figures of $14 billion within the existing customer base without changing any products or pricing, et cetera, that there is a huge amount of upside opportunity still for us to go out and capture. And that's our challenge to do on a weekly basis. Operator: Your next question comes from Koji Ikeda from Bank of America. Koji Ikeda: I wanted to ask about kind of the long-term strategy here. And so clearly, the long-term Atlassian share gain thesis is really hinged on owning the enterprise context. And so what evidence are you hearing or seeing from your customers, especially the largest ones that you have that even if they increasingly centralized context inside other AI data layers, the Atlassian Teamwork Graph is still the moat versus potentially becoming a feature. Michael Cannon-Brookes: Koji, I can talk to that one. I think context is obviously very hard to build. This is a nontrivial problem. It's a unique differentiator that we have, and we continue to improve on. We made massive improvements in the last quarter in the Teamwork Graph. The quality of connectors and the information that we have, how we continue to correlate cross-reference and infer across that data, for example skills we can now infer in the talent app inside the Strategy Collection across all the information in the Teamwork Graph on which are inferring the skills and AI inactivity of your employees, for example. The quality of our net results is up markedly in the last quarter and was already at all-time highs. We've seen it in a number of true fans of chat growing up and up and up, right? The quality of our search, the semantic indexing of code that we showed, there is a lot of hard work to continue to do to make that context to make the Teamwork Graph better and better every quarter. We have more coming Team EU is in October in Amsterdam. No doubt there will be further improvements shown there. I don't think it's as simple as every organization will have 1 graph and we're done. I think most organizations will have 3 to 5 large-scale knowledge graphs, and we intend to be 1 of those 3. We believe we have a significant advantage at the moment and continue to invest, as James said, in our AI and R&D teams to continue to make that accessible and to make that value and quality continue to improve. The Teamwork Graph, importantly, we opened up at Team '26 US, which is a really important step with our MCP server, with our command line [ unified ] so CLI, the ability to put the Teamwork Graph to access its information in any Agentic harness that you're using either chat applications, agents running on other platforms is really important. This is about being an interconnected part of a customer's technology estate. It's about the Atlassian platform being a strategic piece in the puzzle of how it is that they run their business. And I think that integration is a really important point. We're seeing that the reason we talk about the MCP server, MCP and CLI users in the quarter, passing 1 million now. We don't know where that puts us in a world scale, but I think it's 1 of the biggest MCP servers that exist, more than doubling in the quarter is because of people getting to the Teamwork Graph getting to that context from their agents wherever they're deployed. Again, we also signed and increased our partnerships with all of the Foundation Labs. During the quarter, we released Cursor and Claude and GitHub agents within Jira to again bring our interfaces, those agents into our interfaces, so you can use them as natively as possible so that we are part of the network of tools that help an integral part, the strategic part of the network of tools that helps those companies to do what they need to do. I think the Teamwork Graph has incredible long for promise, and we continue to invest heavily to ensure that it remains best source of context and enterprise commit. Operator: Your next question comes from Alex Zukin from Wolfe Search. Aleksandr Zukin: Just a few. I guess what -- like if you had to think about what really happened this quarter that seemingly unlocked and unblocked the enterprise motion because it did seem like there was a meaningful inflection in large deal activity and consequently, our RPO. So just great to get maybe an extra lens on like what was the unlock or the unlock that you saw? Michael Cannon-Brookes: Thanks, Alex. I would say the most important thing is there was no unblock. So I would say this is a continued delivery of the activity we've seen over the last 2 quarters, 3 quarters, 4 quarters. We've talked for 3 or 4 years about how we continue to improve our enterprise motion that is on the technology side. Compliance, we should hit a compliance, for example, for Rovo during the quarter. So the enterprise group is doing a fantastic job on the technology side about making these tools technologies, applications, collections available to companies at scale at incredible scale now in the cloud in different geographies with different compliance requirements. So technology-wise, we're doing a great job. We've continued to improve over the last few years, the human side of our enterprise connectivity as we become more of a strategic partner from sales to customer success to all of the groups that have to interact with our customers at the enterprise level. We've continued to do a better and better job every week for the last multiple years, and you see those results coming through. The customer adoption is a continued trend, right? The RPO acceleration that we have seen again is about customers simply understanding our platform seeing more value across multiple collections in the strategic platform sense of Atlassian and then signing temps, longer deals, larger deals and then expanding their footprint. That's why you see the strong NRR numbers and the strong RPO numbers. So the most important thing I would say is it's not a singular unlock. It is many years of hard work, continual work across lots of areas of the business behind a deep belief in the strength we have in the enterprise segment. James? James Chuong: And just maybe to add to that, I do want to reiterate what Mike said that it's not an overnight thing. We've got sort of similar questions last quarter about Service Collection when we had announced the $1 billion ARR growing north of 30% year-on-year. Those are quarters and years of investment that we're making here. And if you take a look at the enterprise go-to-market motion that we're continuing to evolve here, we really are still early stages when you think about the fact that we're in 85% of the Fortune 500, but really that only represents roughly 10% or so of our total revenue. There's still a lot of headroom there. And sure some of these stats a little bit earlier, but our $3 million cohort, that's 164 customers growing 50% year-over-year. Our $5 million and greater cohort of customers, that's 69, and that's on 70% year-over-year. But again, on a base of $6.6 billion of ARR, it really just highlights how early we are here in terms of the opportunity. Aleksandr Zukin: Overnight success, 3 years in the making. I guess maybe just on the initial ARR guide, James, I think it implies roughly flat organic net new ARR in fiscal '27. And you said you're reflecting the same level of prudence that you have historic -- last historically in this outlook. Is there anything different exiting fiscal '26 that increases the confidence in those numbers given some of those dynamics that you guys just went over? Or just maybe just help level set that a little bit? James Chuong: Yes. No. Again, I'll just say again, you're really pleased with the momentum that we're carrying into FY '27 against subs ARR growth of 23%, RPO growth of 44% year-over-year. So we do really feel good about the state of the business and the healthy broad-based customer demand signals that we're seeing. And as I mentioned a little bit earlier, worth noting the FY '26 ARR year-over-year growth rate did benefit from approximately 1 point from the DX acquisition. So when it comes to that initial guide of 18% for subs growth for FY '27, again taking a balanced and thoughtful approach here, and it's still early in the year. So just adding a bit more prudence in that second half of FY '27. So hopefully that gives you some color there. Operator: Your next question comes from Rob Owens from Piper Sandler. Is Rob on the line? We will move to our next questions instead. Robbie Owens: Sorry about that. Can you hear me? Operator: Please go ahead. Robbie Owens: Yes, my apologies. So the question was around increased Rovo credits with customers and how that's in very strong ARPU uplift. I'm just curious, at what point might we start to contemplate a more consumptive elements to the model? And within the Rovo installed base of customers using it, can you give us any increased color on how often they're coming back? Have you seen multiple increases in just what that's doing to ARPU overall? Michael Cannon-Brookes: Rob, look, as we said, we continue to see a great increase in Rovo assisted actions, which is probably a rough proxy for credit usage. It's not directly linear, but the 50% quarter-on-quarter growth gives you a sense of the customer adoption of Rovo across the areas. Secondly, as we've said that the Teamwork Collection with approximately 10x as many Rovo credits included is a great motivator inducement for upgrade in terms of hitting those limits and looking at upgrading the Teamwork Collection, both in terms of moving to the Teamwork Collection, but also expanding the number of seats, the reps of deployment. Again, as we talked about, as I see the Teamwork Graph working in most different types of teams, you see seat increases, right, which is, again, driving that ARPU number, if you're looking at it at a really macro level, that is happening there. We have a series of consumptive elements today. We continue to work on how we judiciously and prudently roll out consumption-based offerings. We talked about both the direct consumption-based offering for overages. And secondly, the Flex model, which we continue to work on to allow customers to opt in to the entire Atlassian platform with a sort of dollar-based commitment that they can use across various different collections and consumptive elements in a singular package, both of which are early in their cycle holds great promise for the future. But as always, we maintain our sort of long-term thinking position and working through there. Right now, the simplest thing I would say is that the Teamwork Collection and the Service Collection are the vehicles for AI monetization, right? Customers adopting those, driving the usage within those. That is as we've said, that's the vehicle to measure AI monetization and adoption and both are going very, very strongly. Operator: Thank you, and that concludes our question-and-answer session. I will now turn the call over to Mike for closing remarks. Michael Cannon-Brookes: Look, thank you, everyone, for joining the call today. As always, we appreciate the thoughtful questions and continued support. A huge shout out to everyone across the Atlassian team, another great quarter into the books and continued long-term thinking and hard work to deliver for our customers. I hope to see as many of those customers and as many of you on the investment community at Team '26 Europe, which is coming up in October. Other than that, have a kickass day. Before you buy stock in Atlassian, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Atlassian wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy. Atlassian (TEAM) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Atlassian (TEAM) has just reported quarterly results that exceeded analyst expectations, paired with strong guidance that leans heavily on the adoption of its Rovo AI platform and the new Code Context capability. See our latest analysis for Atlassian. Atlassian’s earnings beat and strong Rovo AI narrative have coincided with sharp recent momentum, with a 30 day share price return of 61.44% and a 90 day share price return of 91.99%, even though the 1 year total shareholder return is down 5.34%. If you are watching how AI themed software stocks are moving after earnings, it can be useful to scan for other opportunities using the 70 profitable AI stocks that aren't just burning cash After a surge that pushed Atlassian shares up almost 92% in 90 days, the stock now sits below the average analyst target and only modestly above some intrinsic value estimates. Where does a reasonable fair value actually land? According to the most followed narrative on Atlassian, the current share price of $155.24 sits far above an implied fair value of $83.41. This sets up a wide valuation gap that hangs on a few key growth and profitability assumptions. Read the complete narrative. This narrative leans on double digit revenue growth, rising operating margins and a future profit profile that shifts Atlassian from loss making to strongly cash generative. It raises the question of which revenue mix, margin levels and profit multiple have to line up to justify that $83.41 figure against today’s $155.24 price. Result: Fair Value of $83.41 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Atlassian still faces two key pressure points: slower than expected Rovo or AI adoption, and any setback in cloud migrations away from Data Center. Find out about the key risks to this Atlassian narrative. While the leading narrative paints Atlassian as 86.1% overvalued at $155.24 versus a fair value of $83.41, the preferred sales multiple provides a different perspective. The stock trades on a 6x P/S, compared with a 3.7x industry average and a peer average of 5.6x, yet the fair ratio is calculated at 10.6x. This difference indicates that the market could either pull the multiple down toward peers or move it closer to the fair ratio. Which direction do you think is more realistic? See what the numbers say about this price — find out in our valuation breakdown. This mix of optimism around Atlassian and clear concerns on execution means sentiment is split. Review the numbers now and weigh both the 3 key rewards and 2 important warning signs. If you stop with Atlassian, you could miss other stocks that fit your style. Use the Simply Wall St screener to uncover ideas that match your goals. Target potential deep value opportunities by scanning companies that appear mispriced on quality and fundamentals through the 49 high quality undervalued stocks. Strengthen your income stream by focusing on companies that offer higher yields and robust dividend profiles using the 9 dividend fortresses. Prioritise resilience by filtering for businesses with lower risk scores and steadier profiles through the 85 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TEAM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Collaboration software company Atlassian (NASDAQ:TEAM) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 27.6% year on year to $1.77 billion. Guidance for next quarter’s revenue was optimistic at $1.71 billion at the midpoint, 2.8% above analysts’ estimates. Its non-GAAP profit of $1.87 per share was 24.5% above analysts’ consensus estimates. Is now the time to buy TEAM? Find out in our full research report (it’s free). Revenue: $1.77 billion vs analyst estimates of $1.66 billion (27.6% year-on-year growth, 6.4% beat) Adjusted EPS: $1.87 vs analyst estimates of $1.50 (24.5% beat) Adjusted Operating Income: $636.3 million vs analyst estimates of $510.8 million (36% margin, 24.6% beat) Revenue Guidance for Q3 CY2026 is $1.71 billion at the midpoint, above analyst estimates of $1.66 billion Operating Margin: 11.9%, up from -2.1% in the same quarter last year Billings: $2.02 billion at quarter end, up 34.7% year on year Market Capitalization: $37.83 billion Atlassian delivered a standout Q2, with revenue and non-GAAP profitability surpassing Wall Street expectations and a market response reflecting strong investor confidence. Management pointed to broad-based enterprise adoption, rapid expansion in its cloud and AI-powered offerings, and sustained customer seat growth across both technical and business teams. CEO Michael Cannon-Brookes credited the Teamwork Graph’s unique contextual capabilities and Rovo AI’s growing usage for improving customer engagement and driving larger, longer-term deals. The company also highlighted disciplined cost management, which helped boost operating margins despite increased AI usage. Looking ahead, management’s forward guidance is anchored in continued AI integration, further scaling of the enterprise go-to-market strategy, and prudent planning in light of macroeconomic uncertainties. CFO James Chuong emphasized ongoing investment in AI and sales capacity while maintaining a measured approach to operating margin expansion. Cannon-Brookes noted, “The best is truly yet to come for Atlassian,” underscoring expectations that deeper AI adoption and expansion of the Teamwork Graph will further entrench the platform in enterprise workflows. The company also outlined plans to roll out more flexible consumption-based offerings. Management attributed Q2’s strong performance to the compounding impact of AI innovations, enterprise deal momentum, and the strategic value of Atlassian’s context-driven Teamwork Graph. Enterprise deal momentum: The quarter saw record large enterprise transactions, with the number of $3 million and $5 million annual recurring revenue customers growing over 50% and 70% year-over-year, respectively, as organizations deepened commitments and expanded platform usage. AI and Teamwork Graph impact: Rovo AI, now used by over 80% of Fortune 500 companies, drove a surge in assisted actions and customer adoption. Management highlighted that customers leveraging Rovo grew their recurring revenue at double the rate of non-adopters, attributing this to the graph’s ability to provide highly accurate, context-rich responses while reducing AI costs. Broad-based seat expansion: Growth was not limited to technical users; two-thirds of new seats came from business functions such as HR, finance, and marketing. This reflects increasing cross-department reliance on Atlassian’s collaboration tools, further embedding the platform across organizations. Disciplined cost and margin management: Despite rising AI usage, Atlassian maintained margin improvement by leveraging a blended AI model strategy and cost controls. CFO James Chuong credited long-term R&D efforts and resource allocation for enabling the company to deliver high-quality AI services while expanding margins. Ongoing product synergy: The introduction of new connectors and features in the Teamwork Graph, and deeper integration with external AI agents, enhanced the platform’s utility and stickiness. Management cited growing cross-sell momentum between Service Collection, Teamwork Collection, and new AI-powered solutions as a driver of both current and future growth. Atlassian expects future performance to be shaped by AI adoption, further enterprise penetration, and ongoing investment in product innovation, balanced against cautious planning for external risks. AI monetization and platform upgrades: Management expects continued expansion of AI-driven features, especially through Rovo and the Teamwork Graph, to drive seat growth and motivate customers to upgrade to higher-value collections. The company is also piloting new consumption-based pricing models to better align with evolving customer usage patterns, aiming to improve average revenue per user. Enterprise sales scaling: Scaling the enterprise go-to-market strategy remains a priority, with management citing significant untapped opportunity among large organizations where Atlassian’s presence is still a small fraction of total revenue potential. Deeper engagement, longer deal terms, and cross-selling across business units are expected to support sustained growth. Prudent approach to macro uncertainty: The company is maintaining a cautious outlook in the face of macroeconomic and geopolitical risks. Management emphasized that guidance reflects a balanced view, with careful resource allocation and a willingness to adjust investments in sales and R&D as conditions evolve. Looking ahead, the StockStory team will be watching (1) the pace of enterprise seat expansion and success of cross-sell initiatives, (2) further integration and monetization of AI features, particularly Rovo and Teamwork Graph, and (3) execution of new consumption-based pricing models. Additionally, we will closely monitor Atlassian’s ability to navigate macroeconomic uncertainties while maintaining margin discipline and innovation velocity. Atlassian currently trades at $149.55, up from $110.20 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

It's a great feeling when a stock you own absolutely skyrockets higher after reporting earnings. Two software-as-a-service (SaaS) stocks, Atlassian (NASDAQ: TEAM) and Doximity (NYSE: DOCS), gave their investors something to cheer about when both companies' share prices skyrocketed more than 30% this past Friday, Aug. 7, following their earnings reports. The two stocks had a few things in common going into the report. They both operate vertical-focused software platforms. In the case of Atlassian, its focus is on enterprise workflows, while Doximity's platform is centered on clinical workflows in the medical field. Both companies had also been widely viewed as potential losers in artificial intelligence (AI), and expectations heading into their earnings reports were pretty low. However, both stocks saw strong adoption of their AI offerings, which helped drive strong results and guidance. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » With Atlassian and Doximity already seeing huge gains, let's look at three SaaS stocks that could have similar setups going into their upcoming earnings reports. While GitLab's (NASDAQ: GTLB) business is quite different from Atlassian's, the bear case for both has been quite similar. While Atlassian provides a platform to help enterprise teams collaborate and manage their work, GitLab runs a DevSecOps (development, security, and operations) platform that provides a secure ecosystem for organizations to design software. One of the big risks for both was that AI agents would lead to fewer seat licenses. As a result, both companies shifted toward hybrid consumption- and usage-based models and leaned into their own agentic AI tools. This should actually be good for GitLab, as agents can generate more code, and it still needs to be written in a secure environment. The company has also been working on tools that make token consumption more efficient, which is something that's becoming highly sought-after as AI expenses rise. At the same time, commentary from Microsoft, which owns code repository GitHub, and JFrog, which plays a complementary role in the DevSecOps sector, could bode well for GitLab when it reports its Q3 results. If GitLab's transition to a hybrid usage model shows early signs of driving revenue growth, the stock could be off to the races. Doximity was highly shorted going into its earnings report, with more than 15% short interest. UiPath's (NYSE: PATH) short interest is even higher, sitting around 25%. The stock is also very cheap, trading at a forward price-to-sales (P/S) ratio of 4 times 2027 analyst estimates and a forward P/E of 16.5. That's just a powder keg ready to explode if the company can deliver a strong report and guidance. A leader in robotic process automation (RPA), the company's growth has slowed as organizations evaluate the use of software bots in an AI world. However, software bots can be better at deterministic, high-volume tasks, such as data entry or payroll, and they're certainly much cheaper. Meanwhile, UiPath's Maestro solution positions the company to be an agentic AI orchestration platform that can manage both AI agents and software bots with all the compliance and guardrail requirements. If Maestro can start to gain traction with the rise of AI agents and UiPath starts to see its annual recurring revenue growth accelerate, the stock has the potential to see a major pop come earnings time. Another SaaS stock with low expectations is Asana (NYSE: ASAN). Like Atlassian, it operates a project management software platform, but instead of for IT departments, it is for non-technical teams such as marketing and human resources. The company has been beaten down over fears of slowing seat growth, the threat of AI disintermediation, and competition from Monday.com. However, the company has been working to pivot away from smaller accounts to high-margin enterprise customers with better pricing. At the same time, it has cut costs and rolled out AI Studio (a no-code agent builder) and AI Teammates, which are autonomous agents that collaborate with entire teams, helping build shared organizational memory across workflows. Notably, frontier model leader Anthropic has partnered closely with Asana, integrating its Claude AI model directly into AI Studio and AI Teammates to power its agentic reasoning. This partnership shows that foundation model companies like Anthropic view Asana more as a critical workflow layer rather than a target for disintermediation. If its AI add-on solutions can help accelerate revenue growth, the stock has the potential to rocket higher. Before you buy stock in GitLab, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GitLab wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. Geoffrey Seiler has positions in GitLab and UiPath. The Motley Fool has positions in and recommends Atlassian, Doximity, Microsoft, Monday.com, and UiPath. The Motley Fool recommends GitLab and JFrog. The Motley Fool has a disclosure policy. Atlassian and Doximity Just Surged 30% After Earnings: 3 Software Stocks with the Same Setup was originally published by The Motley Fool

Enterprise software stocks spent much of 2025 and the first half of 2026 under a cloud of skepticism. Investors fretted that generative AI agents would hollow out demand for traditional collaboration and workflow tools. That narrative collided with reality last week. Atlassian Corporation (TEAM) shares surged 35.31% after the collaboration-software leader reported fiscal fourth-quarter results, on August 7th, that blew past expectations. Its cloud revenue accelerated to 31%, and the company swung to a 12% GAAP operating margin, its first quarterly operating profit in more than two years. Don’t Assume Micron Will Share SanDisk’s Fate. Here's Why. The Nvidia-SpaceX Deal Is Sending a Clear Signal on AI Dominance Rocket Lab Investors Have Plenty to Cheer Ahead of Q2 Earnings Today Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. The strong results have given investors a reason to reconsider the sector. Rovo, Atlassian’s AI-powered platform, is also gaining traction. More than 80% of Fortune 500 companies now use it. Instead of hurting established software companies, AI may help firms like Atlassian improve products that are already part of daily business operations. Is this simply a one-day fireworks display, or the moment investors begin rewriting the entire narrative around enterprise software stocks? Atlassian is a Sydney-based collaboration software company with a $37.83 billion market capitalization. Its portfolio includes Jira, Confluence, Jira Service Management, and Loom, which help organizations manage projects, software development, knowledge sharing, and employee workflows. TEAM is down 6.64% year-to-date (YTD) and 9.93% over the past 52 weeks. They still command a premium, trading at 110.17 times trailing price-to-earnings and 163.62 times forward earnings, versus sector medians of 36.31 times and 31.11 times, respectively. Their August 6 earnings release gave investors a concrete reason to revisit that premium. Atlassian reported fiscal fourth-quarter revenue of $1.77 billion, exceeding the $1.66 billion consensus estimate by 6.4% and rising 27.6% year-over-year (YOY). This revenue beat was especially important because it showed demand remained firm despite widespread concern that AI could disrupt established software vendors. TEAM also delivered adjusted earnings of $1.87 per share, surpassing the $1.50 analyst estimate by 24.5%. Its profitability improved more sharply than the revenue figures alone suggest. Adjusted operating income reached $636.3 million, topping the $510.8 milliom consensus forecast by 24.6% and producing a 36% adjusted operating margin. Also, the company returned to GAAP operating profitability, recording an 11.9% operating margin compared with a negative 2.1% margin in the prior-year quarter. Billings rose 34.7% YOY to $2.02 billion at quarter-end, offering a strong indicator of customer commitments and near-term revenue conversion. This outpaced reported revenue growth and supports the argument that enterprise demand remains healthy. Free cash flow margin came in at 26.9%, down from 31.4% in the preceding quarter. Still, the decline did little to overshadow strong revenue growth. Atlassian is building deeper enterprise workflows, data connections, and commercial flexibility around its cloud platform. At Team ’26, Atlassian opened its Teamwork Graph to Rovo and agents across the wider ecosystem. The graph maps how teams work across tools, projects, people, and organizational knowledge. Rovo and compatible agents can now search, reason, and act securely across those connected workflows. That access gives AI systems enterprise context, which is critical for delivering relevant output within existing team permissions. The company also announced Flex, a new licensing structure aimed at complex enterprises. Flex allows Atlassian’s largest customers to adopt and scale products across its portfolio without forecasting usage years in advance. That structure matters as AI consumption changes quickly across teams and applications. Customers can adjust their investments to match actual adoption, potentially reducing procurement friction for Rovo and related platform services. In July, Atlassian expanded the strategy with new Jira capabilities for AI-native software development. The launch targets a meaningful gap between rising AI use and modest productivity gains among engineering organizations. AI adoption by engineers has increased 65%, yet developer velocity has improved by only about 10%, according to Atlassian’s 2026 DX longitudinal study. The gap stems from inadequate enterprise context, unresolved planning and review bottlenecks, and difficulty embedding AI into team workflows. Jira’s new system addresses those constraints by bringing AI into planning, development, review, and maintenance. These approaches could make Atlassian’s products more central to enterprise software delivery. Atlassian’s next earnings report on October 29 will show whether its recent momentum is holding up. Wall Street expects a $0.03 loss per share for the September 2026 quarter. Revenue forecasts look stronger. TEAM expects about $1.71 billion in third-quarter revenue, above analysts’ $1.66 billion estimate. Still, some questions remain. Bank of America and BMO Capital Markets are watching how quickly customers move away from Atlassian’s older Data Center products. Their focus is on how clear management can be about fiscal 2027. Even with those concerns, TEAM has a “Strong Buy” consensus rating from 28 analysts. The average price target of $148.88 has been surpassed by the current price, but the Street-high price of $295 indicates potential 93.9 upside from here. Atlassian’s rally answers the big question. Strong software businesses can still thrive as AI reshapes the industry. Its cloud growth, Rovo adoption, and improving profitability support that case. TEAM may pause after its sharp move, especially as investors monitor the Data Center transition. Still, shares appear more likely to trend higher if management delivers on revenue guidance and turns AI use into lasting enterprise spending. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Atlassian (NASDAQ:TEAM) was indicated more than 30% higher in pre-market trading on Friday after delivering fiscal fourth-quarter results that comfortably exceeded Wall Street expectations, prompting investors to rethink concerns that artificial intelligence could undermine traditional enterprise software providers. The company reported quarterly revenue of $1.77 billion, up 28% from a year earlier and well ahead of analysts’ forecasts of $1.66 billion. The earnings release is being viewed as more than just a company-specific success. Enterprise software stocks have faced heavy selling this year amid fears that AI would replace many workplace productivity and collaboration platforms. Atlassian’s performance is now being interpreted as evidence that AI can enhance, rather than disrupt, software businesses. Analysts suggested the results could also improve sentiment toward peers including Datadog (NASDAQ:DDOG) and Snowflake (NASDAQ:SNOW), both of which may benefit from a broader sector re-rating. Adjusted earnings reached $1.87 per share, comfortably exceeding the consensus estimate of $1.50. Cloud revenue climbed 31% year over year to $1.21 billion and accounted for 68.7% of total revenue, compared with 67.0% a year earlier. Remaining performance obligations increased 44% to $4.8 billion, providing strong visibility over future revenue. Atlassian also returned to GAAP operating profitability for the first time in more than two years, delivering a 12% operating margin. The company’s Rovo AI platform emerged as one of the standout drivers during the quarter. Management said more than 80% of Fortune 500 companies now use Rovo, while Rovo-assisted actions increased 50% compared with the previous quarter. Users of the platform completed 20% more Jira tasks and created 25% more Confluence pages than customers not using the AI tools. CEO Mike Cannon-Brookes described the company’s competitive advantage by saying, “in the AI era, context is the edge.” He also demonstrated confidence in Atlassian’s outlook by announcing plans to purchase up to $250 million worth of the company’s shares. The earnings report prompted a wave of positive analyst reactions. Bank of America upgraded Atlassian to Buy from Neutral and lifted its price target to $175 from $105, describing the company as “an AI beneficiary rather than AI victim.” The bank highlighted Atlassian’s Teamwork Graph as a key competitive advantage that could prove difficult for rivals to replicate. Mizuho’s Jordan Klein was equally enthusiastic, writing, “TEAM would be my GAME CHANGER stock of the day and key name to watch.” He added, “28% rev growth crushed Street at 20%, core Cloud growth accelerated, and the big risk of initial FY27 growth guide now defanged and was better. Best yet is CEO buying $250M of stock, and new AI related products gaining serious traction. WHY I THINK STOCK GETS CHASED & GOES HIGHER: its still super cheap for the growth: 5x EV/Sales even up 33% and 16x EV/FCF.” Atlassian’s results arrive as investors reassess how artificial intelligence will affect the software industry. Earlier this week, Shopify delivered stronger-than-expected results that also suggested AI is supporting business growth rather than replacing software platforms. That contrasted with earlier concerns following results from ServiceNow and IBM, which had intensified fears of AI-driven disruption across the sector. HSBC had previously argued that enterprise software companies “will not be threatened by AI” and that depressed valuations presented an attractive buying opportunity. Atlassian’s latest performance is likely to reinforce that view. Before Friday’s rally, Atlassian shares had fallen around 32% since the start of the year. At the indicated pre-market price of approximately $144.61, the stock was on course to reach its highest level in roughly seven months after closing at $110.17 on Thursday. Despite the upbeat quarter, investors will continue to examine the company’s fiscal 2027 outlook. Management forecast annual revenue growth of 13%, well below the 28% growth reported for the latest quarter, as its Data Center business is expected to decline 17% while customers continue migrating to cloud-based services. The combination of slower forward guidance and the release of the U.S. July employment report ahead of Friday’s opening bell could contribute to heightened volatility as the market assesses Atlassian’s longer-term outlook. Atlassian stock price