Atlassian (NASDAQ:TEAM) Issues Earnings Results

Atlassian (NASDAQ:TEAM) issued its earnings results on Thursday. The technology company reported $1.75 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.42, FiscalAI reports. The business had revenue of $1.79 billion for the quarter, compared to the consensus estimate of $1.70 billion. Atlassian had a negative net margin of 3.29% and a negative return on equity of 6.33%. The company’s revenue for the quarter was up 31.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.97 EPS.

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

• Strong Q3 financials — total revenue grew 32% year-over-year to $1.8 billion, cloud revenue surpassed $1.1 billion (+29% YoY), and RPO rose 13% to $4 billion, signaling continued growth momentum.
• Rapid AI adoption — Rovo added millions of monthly active users, AI credit usage is growing >20% month-over-month, and customers using Rovo are growing ARR at roughly twice the rate of non-users, contributing to cloud outperformance and expansion.
• Enterprise traction and share gains — Atlassian reported its largest-ever quarter for competitive displacements (notably in Service Collection), the Service Collection passed $1 billion ARR, and NRR remains north of 120%, reflecting strong retention and cross-sell.
• Data Center revenue lumpiness — Q3 outperformance included approximately $50 million of upfront term license revenue pulled forward after the Data Center end-of-life announcement and a pricing change, creating timing distortions that could pressure FY2027 comparability.
• Pricing and profitability stance — Atlassian says it will remain customer-led on seat-based and consumption meters, reinvest in AI and enterprise while pursuing durable, profitable growth, and will provide enhanced ARR disclosures at Team ’26 to clarify timing effects.

Atlassian Stock Down 2.7%

Shares of NASDAQ TEAM traded down $1.90 during midday trading on Thursday, reaching $68.59. 8,283,412 shares of the company’s stock traded hands, compared to its average volume of 7,493,602. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.62. The stock’s 50 day simple moving average is $70.97 and its 200-day simple moving average is $118.12. Atlassian has a one year low of $56.01 and a one year high of $242.00. The company has a market cap of $18.09 billion, a price-to-earnings ratio of -95.26 and a beta of 0.99.

Key Stories Impacting Atlassian

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Q3 results beat on both top and bottom lines: revenue of ~$1.79B (?+32% YoY) and non-GAAP EPS $1.75, both ahead of Street estimates — the core catalyst for the post-earnings rally. Atlassian Announces Third Quarter Fiscal Year 2026 Results
• Positive Sentiment: Management raised its full-year revenue outlook, citing momentum from AI-driven features and stronger enterprise sales (and continued cloud/data-center migration), which supports a higher growth trajectory and margin improvement expectations. Atlassian lifts annual revenue forecast as AI features, enterprise sales boost growth
• Positive Sentiment: Market reaction: multiple reports show shares jumped sharply in extended trading (double-digit gains) after the beat and raised guidance — a direct short-term upward driver for the stock. Atlassian (NASDAQ:TEAM) Beats Q1 CY2026 Sales Expectations, Stock Jumps 13.6%
• Neutral Sentiment: Company posted the shareholder letter/press release and updated metrics on the investor site — useful for detailed modeling (product-level growth, cloud vs. server, margin assumptions). Atlassian Investor Relations
• Neutral Sentiment: Partner ecosystem development: Spin.AI’s acquisition of Revyz highlights strengthened third-party backup/security tooling for Jira/Confluence, which could improve enterprise retention and upsell over time. Spin.AI Revyz Deal Highlights Atlassian Ecosystem’s Role In Enterprise Security
• Negative Sentiment: Some sell-side activity: at least one reported price-target cut (example: to $146.60), indicating analysts remain mixed on sustainable valuation despite the beat. That could cap upside once the immediate enthusiasm fades. Atlassian (TEAM) price target decreased by 12.87% to 146.60
• Negative Sentiment: Recent multi-month share weakness: analysts and commentary note a sharp 90-day decline before the rebound — investors should weigh short-term momentum against prior volatility and longer-term execution risk. Evaluating Atlassian (TEAM) After A Sharp 90 Day Share Price Decline And Recent Rebound

Insider Buying and Selling at Atlassian

In related news, CTO Rajeev Bashyam Rajan sold 3,072 shares of the stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $81.35, for a total transaction of $249,907.20. Following the completion of the sale, the chief technology officer owned 212,916 shares of the company’s stock, valued at $17,320,716.60. This represents a 1.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Scott Farquhar sold 7,665 shares of Atlassian stock in a transaction on Friday, February 6th. The stock was sold at an average price of $94.81, for a total transaction of $726,718.65. Following the completion of the transaction, the director directly owned 275,940 shares in the company, valued at $26,161,871.40. This represents a 2.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 67,333 shares of company stock valued at $7,165,373 in the last ninety days. Company insiders own 36.66% of the company’s stock.

Hedge Funds Weigh In On Atlassian

Several institutional investors and hedge funds have recently bought and sold shares of TEAM. AQR Capital Management LLC grew its holdings in Atlassian by 291.4% in the fourth quarter. AQR Capital Management LLC now owns 7,749,694 shares of the technology company’s stock worth $1,256,535,000 after purchasing an additional 5,769,788 shares during the last quarter. Morgan Stanley grew its holdings in Atlassian by 52.4% in the fourth quarter. Morgan Stanley now owns 4,822,007 shares of the technology company’s stock worth $781,841,000 after purchasing an additional 1,657,309 shares during the last quarter. Carmignac Gestion grew its holdings in Atlassian by 6,602.0% in the fourth quarter. Carmignac Gestion now owns 1,206,368 shares of the technology company’s stock worth $195,601,000 after purchasing an additional 1,188,368 shares during the last quarter. Voyager Global Management LP grew its holdings in Atlassian by 181.8% in the third quarter. Voyager Global Management LP now owns 1,550,000 shares of the technology company’s stock worth $247,535,000 after purchasing an additional 1,000,000 shares during the last quarter. Finally, Nuveen LLC grew its holdings in Atlassian by 58.8% in the fourth quarter. Nuveen LLC now owns 2,159,971 shares of the technology company’s stock worth $350,218,000 after purchasing an additional 800,090 shares during the last quarter. 94.45% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on TEAM shares. Guggenheim set a $115.00 target price on shares of Atlassian in a research note on Thursday, April 9th. Truist Financial set a $90.00 target price on shares of Atlassian in a research note on Wednesday, April 15th. BMO Capital Markets set a $130.00 target price on shares of Atlassian and gave the stock an “outperform” rating in a research note on Friday, February 6th. Morgan Stanley dropped their price objective on shares of Atlassian from $290.00 to $120.00 and set an “overweight” rating on the stock in a research note on Thursday, April 16th. Finally, Wolfe Research reiterated an “outperform” rating and set a $100.00 price objective on shares of Atlassian in a research note on Thursday, March 12th. Nineteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $152.22.

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.